Assignment

On
Financial Ratio Analysis & Trend Analysis

Course Code: FIN-532

Course Title: Managerial Finance

Submitted To
Mr. Mohammad Zahed Hossain
Assistant Professor (F&B)
Department of Business Administration
Leading University

Submitted By
Group-Vikings
Name ID No
1. Jakia Akther Mitu 2011017012
2. Bably Akther Chowdhury Moury 2011017013
3. Swomik Bhadra 2011017034
4. Fahmida Rahman Taiba 2011017036
5. Aklima Yeasmin 2011017037
6. Shahriar Ahmed Chowdhury 2011017038

Date of Submission: June 3rd, 2020

 ACKNOWLEDGEMENT

In performing our assignment, we had to take the help and guideline

of some respected persons, who deserve our greatest gratitude. The
completion of this assignment gives us much pleasure. We would
also like to expand our deepest gratitude to all those who have
directly and indirectly guided us in preparing this assignment.

In addition, Special thanks to Our Assistant Professor, Mr.

Mohammad Zahed Hossain who introduced us to the methodology
of work, and whose passion for the “underlying structures” had
lasting effect.
 Table of Content

Contents Page

Chapter 1: Introduction 1-2

1.1 Objective of the study 2

1.2 Methodology 2
1.3 Limitation 2
Chapter 2: Theoretical Framework 4-12
2.1 Financial Ratio Analysis 4-11

2.1.1 Liquidity Ratios 4-5

2.1.2 Activity Ratios / Asset Management Ratios 5-7

2.1.3 Debt Management Ratios 7-9

2.1.4 Profitability Ratios 9-10

2.1.5 Market Ratios 11

2.2 Trend Analysis 12

PART ONE- 13-41

Chapter 3: Overview of Premier Cement Mills Ltd 14-27

3.1 Company in Brief 15
3.2 Stock Statistics 16
3.3 Board of Directors 16
3.4 Shareholding Pattern 17
3.5 Vision & Mission 17
3.6 Values (That They Care For) 17-18
3.7 Corporate Objectives (That They Strive For) 18
3.8. Corporate Philosophy 19
3.9 Code of Conduct and Ethical Standards 19-20
3.10 Products of Premier Cement Mills Ltd 21
3.11 Performance at a glance in the year 2019 21
3.12 Financial Statement of Premier Cement Mills Ltd 22-27
Chapter 4: Ratio Analysis & Trend Analysis of Premier 28-41
Cement Mills Ltd
4.1 Liquidity Ratios 28-29
4.2 Activity Ratios / Asset Management Ratios 30-33
4.3 Debt Management Ratios 34-35

4.4 Profitability Ratios 36-39

4.5 Market Ratios 40-41

PART TWO- 42-63

Chapter 5: Overview of Aamra Networks Limited 43-49

5.1 Company Profile 43

5.2 Stock Statistics 44
5.3 Shareholding Pattern 44
5.4 Board of Directors 45
5.5 Vision & Mission 45
5.6 Product & Services 46
5.7 Financial Statement of Aamra Networks Limited in the 47-49
Last Three Years

Chapter 6: Ratio Analysis & Trend Analysis of Aamra 50-63

Networks Limited
6.1 Liquidity Ratios 50-51
6.2 Activity Ratios / Asset Management Ratios 52-55
6.3 Debt Management Ratios 56-57
6.4 Profitability Ratios 58-61
6.5 Market Ratios 62-63
Chapter 7: Findings of the Study 64-67
7.1 Findings from Data analysis of Premier Cement Mills Ltd 64-65
7.2 Findings from Data analysis of Aamra Network Limited 66-67

Chapter 8: Recommendations & Conclusion 68-70

8.1 Recommendations 68-69
8.2 Conclusion 70
References 71
 Chapter 1: Introduction

Premier Cement one of the largest and most renowned cement brand in Bangladesh. It started its
journey as a private limited Company on 14 October 2001 under the Company Act 1994 with the
commitment of manufacturing high quality cement under the brand name “Premier Cement”.
Initially the plant was installed with a production capacity of 0.6 Million Metric Tons per annum.
From then Premier Cement did not need to look back. The demand for Premier Cement has been
increasing day by day. Now they have a remarkable production capacity of 2.4 Million Metric
Tons per annum.

On the other hand, Aamra networks limited (formerly Global Online Services Limited) over the
last decade has consistently provided its customers with state-of-the-art IT communication
solutions. Its clients have been able to rely on its ability to provide stable and consistent
connectivity solutions. Using the state-of-the-art backbone and infrastructure, they have ensured
that their clients have had minimal worry when it comes to dependability of their IT
Communication. That in turn has ensured them an enviable list of blue-chip customers. When
Internet and related value-added services are critical input to business, Corporate Bangladesh has
but only one obvious choice-aamra.

Financial statements provide information about a firm’s position at a point in time as well as its
operations over some past period and trend analysis provides information about whether the
firm’s financial position is more likely to improve or deteriorate in the future. So, this study will
cover the “ration analysis and trend analysis of Premier Cement Mills Limited & Aamra
Networks Limited over the last three years”.

1
1.1 Objectives of The Study

The major objective of this study is to make a clear analysis of Financial Performance of Premier
Cement Mills Limited & Aamra Networks Limited. There are some specific objectives
mentioned bellow:

 To calculate various financial ratios of the Premier Cement Mills Limited & Aamra
Networks Limited for last 3 years using Balance sheets and income statements.
 To construct graphs containing both of the firms’ ratios and the industry averages for the
past three years.
 To make comments and pointing out some suggestions based on results by calculations.

1.2 Methodology

This study is mainly based on secondary data. Secondary data and information have been
gathered from Internet browsing, Books, Journals, Annual reports of Premier Cement Mills
Limited & Aamra Networks Limited, Research paper etc. Primary data and information also
have collected through using observation and taking other respected person opinion.

1.3 Limitation

The major limitation factor for this report is that information from different sources were quite
inconsistent which created some problems in making the assignment & compelled us to verify
the information diligently. The time limit was also a fact because at the same time we are doing
our other assignments. So, it was quite hard to keep everything at a run.

2
 Chapter 2: Theoretical Framework

2.1 Financial Ratio Analysis

Financial statements provide information about a firm's position at a point in time as well as its
operations over some past period. Nevertheless, the real value of financial statements lies in the
fact that they can be used to help predict the firm’s financial position in the future and to
determine expected earnings and dividends. From an investor's standpoint, predicting the future
is the purpose of financial statement analysis; from management's standpoint, financial statement
analysis is useful both as a way to anticipate future conditions and, more important, as a starting
point for planning actions that will influence the future course of events.

Ratio analysis involves methods of calculating and interpreting financial ratios to analyze and
monitor the firm’s performance. The basic inputs to ratio analysis are the firm’s income
statement and balance sheet. Financial ratios can be divided for convenience into five basic
categories: liquidity, activity, debt, profitability, and market ratios. Liquidity, activity, and debt
ratios primarily measure risk. Profitability ratios measure return. Market ratios capture both risk
and return.

The first step in a financial analysis typically includes an evaluation of the firm's ratios. The
ratios are designed to show relationships among financial statement accounts within firms and
between firms. Translating accounting numbers into relative values, or ratios, allows us to
compare the financial position of one firm with the financial position of another firm, even if
their sizes are significantly different.

3
2.1.1 Liquidity Ratios

A liquid asset is one that can be easily converted to cash without significant loss of its original
value. Converting assets—especially current assets such as inventory and receivables—to cash is
the primary means by which a firm obtains the funds needed to pay its current bills. Therefore, a
firm’s “liquid position” deals with the question of how well the company is able to meet its
current obligations. Short-term, or current, assets are more easily converted to cash (more liquid)
than are long-term assets. In general, then, one firm would be considered more liquid than
another firm if it has a greater proportion of its total assets in the form of current assets.

1. Current Ratio:

Current assets normally include cash and equivalents, accounts receivable, and inventories.
Current liabilities consist of accounts payable, short-term notes payable, long-term debt that
matures in the current period (current maturities of long-term debt), accrued taxes, and other
accrued expenses (principally wages).

When a company experiences financial difficulty, it pays its bills (accounts payable) more
slowly, borrows more from its bank, and so forth. If current liabilities are rising more rapidly
than current assets, the current ratio will fall, which could spell trouble. Because the current ratio
provides the best single indicator of the extent to which the claims of short-term creditors are
covered by assets that are expected to be converted to cash fairly quickly, it is the most
commonly used measure of short-term solvency.

The current ratio, one of the most commonly cited financial ratios, measures the firm’s ability to
meet its short-term obligations. It is expressed as follows:

current assets
Current ratio = current liabilities

4
2. Quick (Acid-Test) Ratio:

The quick (acid-test) ratio is similar to the current ratio except that it excludes inventory, which
is generally the least liquid current asset. The generally low liquidity of inventory results from
two primary factors: (1) many types of inventory cannot be easily sold because they are partially
completed items, special-purpose items, and the like; and (2) inventory is typically sold on
credit, which means that it becomes an account receivable before being converted into
cash.

Inventories typically are the least liquid of a firm’s current assets, so they are the assets on which
losses are most likely to occur in the event of a “quick” liquidation. Therefore, a measure of the
firm’s ability to pay off short-term obligations without relying on the sale of inventories is
important. The quick ratio is calculated as follows:

current assets−Inventory
Quick ratio =
current liabilities

2.1.2 Activity Ratios / Asset Management Ratios

Activity ratios measure the speed with which various accounts are converted into sales or cash—
inflows or outflows. With regard to current accounts, measures of liquidity are generally
inadequate because differences in the composition of a firm's current assets and current liabilities
can significantly affect its "true" liquidity.

Firms invest in assets to generate revenues both in the current period and in future periods. To
purchase their assets, companies must borrow or obtain funds from other sources. If firms have
too many assets, their interest expenses will be too high; hence, their profits will be depressed.
On the other hand, because production is affected by the capacity of assets, if assets are too low,
profitable sales might be lost because the firm is unable to manufacture enough products.

5
1. Inventory Turnover:

Inventory turnover commonly measures the activity, or liquidity, of a firm’s inventory. It is

calculated as follows:

Cost of goods sold

Inventory Turnover =
Inventory

You should use care when calculating and using the inventory turnover ratio because purchases
of inventory (and thus the cost of goods sold) occur over the entire year, whereas the inventory
figure applies to one point in time (perhaps December 31). For this reason, it is better to use an
average inventory measure." If the firm's business is highly seasonal, or if a strong upward or
downward sales trend has occurred during the year, itis essential to make such an adjustment.
Inventory turnover can be easily converted into an average age of inventory by dividing it into
365—the assumed number of days in a years.

2. Days Sales Outstanding:

The average collection period, or average age of accounts receivable, is useful in evaluating
credit and collection policies. Days sales outstanding (DSO), also called the average collection
period (ACP), is used to evaluate the firm’s ability to collect its credit sales in a timely manner.
DSO is calculated as follows:

Accounts receivable
Days Sales Outstanding =
Average sales per day

Accounts receivable
= Annual Sales
360
If the trend in DSO over the past few years has been rising, but the credit policy has not been
changed, it would be even stronger evidence that the company should take steps to improve the
time it takes to collect accounts receivable.

6
3. Fixed Assets Turnover Ratio:

The fixed assets turnover ratio measures how effectively the firm uses its plant and equipment to
help generate sales. It is computed as follows:

Sales
Fixed asset turnover = assets ¿
Net ¿
Take care when using the fixed assets turnover ratio to compare the performance of different
firms. Recall from accounting that most balance sheet accounts are stated in terms of historical
costs. Inflation might cause the value of many assets that were purchased in the past to be
seriously understated.

4. Total Asset Turnover:

The total asset turnover indicates the efficiency with which the firm uses its assets to generate
sales. Total asset turnover is calculated as follows:

Sales
Total asset turnover =
Total assets

Generally, the higher a firm's total asset turnover, the more efficiently its assets have been used.
This measure is probably of greatest interest to management, because it indicates whether the
firm's operations have been financially efficient.

2.1.3 Debt Management Ratios

The extent to which a firm uses debt financing has three important implications:

 By raising funds through debt, the firm avoids diluting stockholder ownership.

 Creditors look to the equity, or owner-supplied funds, to provide a margin of

safety. If the stockholders have provided only a small proportion of the total
financing, the risks of the enterprise are borne mainly by its creditors.

 If the firm earns more on investments financed with borrowed funds than it pays
in interest, the return on the owners’ capital is magnified, or “leveraged.”
7
1. Debt Ratio:

The debt ratio measures the percentage of the firm’s assets financed by creditors debt ratio
(borrowing). Creditors prefer low debt ratios because the lower the ratio, the greater the cushion
against creditors’ losses in the event of liquidation. The owners, on the other hand, can benefit
from leverage because it magnifies earnings, thereby increasing the return to stockholders. Too
much debt often leads to financial difficulty, which eventually could cause bankruptcy. Debt
ratio is computed as follows:

Total liabilities
Debt Ratio =
Total assets

The higher this ratio, the greater the amount of other people's money being used to generate
profits.

2. Times-Interest-Earned Ratio:

The times interest earned ratio, sometimes called the interest coverage ratio, measures the firm's
ability to make contractual interest payments. The higher its value, the better able the firm is to
fulfill its interest obligations. The times interest earned ratio is calculated as follows:

Earningsbefore interest ∧taxes( EBIT )

Times interest earned ratio =
Interest charges

The TIE ratio measures the extent to which a firm's earnings before interest and taxes (EBIT),
also called net operating income (NOI), can decline before these earnings are unable to cover
annual interest costs. Failure to meet this obligation can bring legal action by the firm’s creditors,
possibly resulting in bankruptcy. Note that EBIT, rather than net income, is used in the
numerator. Because interest is paid with pretax dollars, the firm's ability to pay current interest is
not affected by taxes.

8
3. Fixed Charge Coverage Ratio:
The fixed-payment coverage ratio measures the firm’s ability to meet all fixed-payment
obligations, such as loan interest and principal, lease payments, and preferred stock dividends.
As is true of the times interest earned ratio, the higher this value, the better.

The formula for the fixed-payment coverage ratio is:

Fixed payment coverage ratio

EBIT + Lease payments

= Interest + Lease payments
+ {(Principal payments + Preferred stock dividends )+[1/(1−Tax rate)]}

Like the times interest earned ratio, the fixed-payment coverage ratio measures risk. The lower
the ratio, the greater the risk to both lenders and owners; the greater the ratio, the lower the risk.
This ratio allows interested parties to assess the firm's ability to meet additional fixed-payment
obligations without being driven into bankruptcy

2.1.4 Profitability Ratios

Profitability is the net result of a number of policies and decisions. The ratios examined thus far
provide some information about the way the firm is operating, but the profitability ratios show
the combined effects of liquidity management, asset management, and debt management on
operating results.

1. Net Profit Margin:

The net profit margin measures the percentage of each sales dollar remaining after all costs and
expenses, including interest, taxes, and preferred stock dividends, have been deducted. The
higher the firm’s net profit margin, the better. The net profit margin is calculated as follows:

Net Profit
Net profit margin =
Sales

9
The net profit margin is a commonly cited measure of the firm's success with respect to earnings
on sales. "Good" net profit margins differ considerably across industries.

2. Earnings per Share (EPS):

The firm’s earnings per share (EPS) is generally of interest to present or prospective stockholders
and management. As we noted earlier, EPS represents the number of dollars earned during the
period on behalf of each outstanding share of common stock. Earnings per share is calculated as
follows:

Earnings per share =

Net income available ¿ common stockholders ¿

Number of shares of common stock outstanding

This figure represents the dollar amount earned on behalf of each outstanding share of common
stock. The dollar amount of cash actually distributed to each shareholder is the dividend per
share (DPS). EPS is closely watched by the investing public and is considered an important
indicator of corporate success.

3. Return on Total Assets (ROA):

The return on total assets (ROA), often called the return on investment (ROI), measures the
overall effectiveness of management in generating profits with its available assets. The higher
the firm’s return on total assets, the better. The return on total assets is calculated as follows:

Net Profit∨Earnings available for common stockholders

Return on total assets =
Total assets

4. Return on Common Equity (ROE):

The return on common equity (ROE)measures the return earned on the common stockholders’
investment in the firm. Generally, the higher this return, the better off are the owners. Return on
common equity is calculated as follows:

10
 ¿
Return on total equity = Net income available ¿ common stockholders Total equity

2.1.5 Market Ratios

Market ratios relate the firm’s market value, as measured by its current share price, to certain
accounting values. These ratios give insight into how well investors in the marketplace feel the
firm is doing in terms of risk and return. They tend to reflect, on a relative basis, the common
stockholders’ assessment of all aspects of the firm’s past and expected future performance. Here
we consider two popular market ratios, one that focuses on earnings and another that considers
book value.

1. Price/Earnings (P/E) Ratio: The price/earnings (P/E) ratio is commonly used to assess the
owners’ appraisal of share value.16The P/E ratio measures the amount that investors are willing
to pay for each dollar of a firm’s earnings. The level of the price/earnings ratio indicates the
degree of confidence that investors have in the firm’s future performance. The higher the P/E
ratio, the greater is investor confidence. The P/E ratio is calculated as follows:

Market price per share of common stock

Price/earnings (P/E) ratio=
Earnings per share

2. Market/Book (M/B) Ratio: The market/book (M/B) ratio provides an assessment of how
investors view the firm’s performance. It relates the market value of the firm’s shares to their
book—strict accounting—value. To calculate the firm’s M/B ratio, we first need to find the
book value per share of common stock:

Commonequity
Book value per share of common stock =
Number of common shares outstanding

The formula for the market/book ratio is

Market price per share

Market/book (M/B) ratio =
Book value per share

11
2.2 Trend Analysis

A simple approach to trend analysis is to construct graphs containing both the firm’s ratios and
the industry averages for the past five years. Using this approach, we can examine both the
direction of the movement in, and the relationships between, the firm’s ratios and the industry
averages.

12
PART ONE

13
 Chapter 3: Overview of Premier Cement Mills Ltd

Premier Cement Mills Ltd is a renowned & leading cement brand in the country. It also has a
good reputation in our neighboring country, India. Premier Cement believes that success don’t
come unless responsibility is assumed. As per continuous part of our social responsibility, last
year we have conducted numerous CSR activities which include educational programs, providing
reliefs for extremely poor people, health awareness programs, etc. Now they have a remarkable
production capacity of 2.4 Million Metric Tons per annum.

In 2017, the company signed an agreement with FL Smidth-Denmark for installation of Vertical
Roller Mill in order to increase its production capacity to 5.16 Million tons per annum. The said
enhancement will effect in reduced production cost which will enable the company to reach its
products in every nook and corner of the county and in turn help people with less purchasing
power to build their houses at an affordable price and construct bridges, culverts, concrete roads
in the remote areas of the country. Thus, the overall infrastructure of the country will be
developed

It was converted into a public limited company under the Companies Act 1994 with an
authorized capital of BDT 5,000 million in 2010. After going through successful operation and
production for three more years, in 2013 it was listed with the Dhaka Stock Exchange Limited
and Chittagong Stock Exchange Limited simultaneously.

14
3.1 Company in Brief
Name Premier Cement Mills Limited
Activity The principal activity of the company is to manufacture Ordinary
Portland Cement and Portland Composite Cement. Having started its
production in March, 2004 with a total installed capacity of almost 1.2
million Metric Tons (MT) per annum in two units at West Mukterpur,
Munshigonj, the company manufactures cement by ensuring good
quality and markets under the brand name “Premier Cement”. To meet
the growing market demand, Premier Cement took initiative to improve
its production capacity by installing another Two Units (Unit 3 & Unit 4)
with capacity of 1.2 million MT per annum on the same location.
Company already opened LC for importing two sets of brand-new
machinery form China. Ongoing expansion is expected to start
commercial operation within the second quarter of 2012. After
completion of this expansion consolidated installed capacity of PCML
will be 2.4 million Metric Tons per annum.
Fin. Year End June
Incorporation
Commencement
of Operation
Script Code DSE - 21645
CSE - 15011
Listing Year DSE - 2013
CSE - 2013
Debut Trading DSE - 03 Mar, 2013
Date CSE - 03 Mar, 2013

15
Web http://www.premiercement.com
Email info@premiercement.com
Contact Info  TK BHABAN (12TH FLOOR),13 KARWAN BAZAR
 +880 2 55012191~8
 +880 2 55012088~9

3.2 Stock Statistics

Market Capitalization -BDT(mn) 6,748.80

Authorized Capital -BDT(mn) 5,000.00

Paid Up Capital -BDT(mn) 1,054.50

Total Shares 105,450,000

Market Lot 1

Market Category A

Credit Rating LT:AA, ST:ST-2

Last Divident Declaration Date 27-Oct-19

AGM Date 21-Dec-19

P/E (Audited) as on 25-Mar-2020 10.95

P/E (Interim) as on 25-Mar-2020 27.37

3.3 Board of Directors

Chairman Mr. Mohammad Mustafa Haider

Managing Director Mr. Mohammed Amirul Haque

16
 Director Mr. Md. Jahangir Alam

Director Mohammed Ershadul Hoque

3.4 Shareholding Pattern

3.5 Vision & Mission

Vision: Work towards the development of society through sustainable growth and excellence in
performance.

Mission: To become a market leader in the cement industry by satisfying the customers through
excellence in production, competitive pricing and adding value for their stakeholders

3.6 Values (That They Care For)

 Integrity: They take pride in being a highly ethical company that respects relationships
and the dignity of the individual. We obey the laws, produce environmentally safe
products, protect the environment and practice equal employment and adopt fair labor
practices. We are dedicated to the protection and preservation of our environment,
animals and community.

17
  Customer Satisfaction: They recognize that without our customers we do not exist as a
business. Consequently, we are committed to develop and maintain exceptional customer
relations built on mutual trust, respect and loyalty and to constantly and consistently meet
our customers' expectations.

 Understand: They seek to understand the needs of stakeholders & the Company to make
the best (balanced) decisions.

 Simplify: They work towards making things convenient for the people and to increase
the effectiveness of our products.

 Solve: They find ways to resolve issues that prevent us from delivering values to those
we serve.

 Connect: They communicate to manage people’s expectations in the most effective

manner.

 Quality: They produce high quality products by maintaining European Standards and we
use the best raw materials and provide technical excellence for our Customers.

 Commitment: They are committed to achieving success for our customers, for our
teams and ourselves through compliance of regulatory guidelines.

 Social Responsibility: They promote CSR activities to address social issues as well as to
create value to the society

3.7 Corporate Objectives (That They Strive For)

 To promote comprehensively on current areas of success.

 To build a strong brand image.

 To give more emphasis on customers satisfaction.

 To earn reasonable profits.

 To capture the target market share.

18
  To serve consistently the changing needs of customers for their convenience.

 To satisfy our customers.

 To be the leading cement manufacturer in Bangladesh.

3.8. Corporate Philosophy

For Customers: The main objective of PCML is to provide best quality products and services in
every aspects of its business and to maintain good customer-supplier relationship.

For Shareholders: By forging ahead and consolidating its position as a stable and progressive
Manufacturing Company.

For Employees: Clients do not come first, Employees do. If Premier Cement take care of their
employees, the employees will eventually take care of their clients

3.9 Code of Conduct and Ethical Standards

 Compliance with laws, rules and regulations: Premier Cement and all its employees
are bound by the law. All employees must follow applicable laws, rules and
regulations as adopted in Bangladesh at all times.

 Conflict of interest: A “conflict of Interest” exists when an employee’s personal interest

interferes with the best interest of the Company.

 Business relationships: Directors and management are not allowed to make any business
relationship which may hamper the Company’s image in the country.

 Corporate disclosure: Directors and senior management personnel are liable to full, fair,
accurate, timely, understandable and relevant disclosure in reports and documents it files
with or submits to the regulatory bodies and publishes through the medium of public
communications.

19
 Privacy and Confidentiality: Directors and management personnel must ensure
confidentiality of such information which may influence capital market directly or
indirectly.

 Fraudulent and unfair practices in the securities market: It is forbidden for all the
directors as well as management to be engaged in any kind of fraudulent and unfair
trading practices in the securities market, with regard to the securities of the Company or
of any other Company with whom the Company has business dealings to the best of their
knowledge.

 Protection and proper use of Company’s opportunities and resources: Without

having permission of the board of directors, directors are not allowed to gain personal
benefit from any opportunities that belong to the Company.

 Fair dealing: Any personnel of the Company must not discriminate any employee,
customer, supplier or any business partner based on caste, religion, gender or disability of
any kind.

 Health, safety & environment: Company must comply with all the relevant
environmental, safety and health laws and regulations.

 Applicability, amendment, modification & waivers: The comprehensive code applies

equally to all employees, directors and management personnel.

20
3.10 Products of Premier Cement Mills Ltd

 Portland Cement (PC); CEM I, Strength Class 52.5N

 Portland Composite Cement (PCC); CEM II, Strength Class 42.5N

 Portland Pozzalana Cement

3.11 Performance at a glance in the year 2019

21
3.12 Financial Statement of Premier Cement Mills Ltd

3.12.1 Balance Sheet Statement in The Last Five Years

Particulars 2019 2018 2017

Property, plant and 6,199,568,474.00 5,962,144,721.00 6,905,850,606.00
equipment
Investments in 106,497,835.00 70,000,000.00 -
Associates
Capital Work in Progress 3,917,092,896.00 870,701,373.00 189,547,734.00

22
Total Non-Current 10,223,159,205.00 6,902,846,094.00 7,095,398,340.00
Assets
Inventories 877,510,398.00 495,177,438.00 995,614,178.00

Trade receivables 2,220,587,712.00 2,404,625,585.00 2,399,092,653.00

Cash and cash 169,269,065.00 77,432,884.00 109,755,023.00
equivalents
Investment in FDR 142,517,994.00 194,812,845.00 184,527,456.00
Current account with 1,364,425,536.00 731,812,819.00 -
sister concern
Prepayments 3,828,456,068.00 2,760,471,909.00 1,689,044,819.00
Total Current Assets 8,602,766,773.00 6,664,333,480.00 5,378,034,129.00
TOTAL ASSETS 18,825,925,978.00 13,567,179,574.00 12,473,432,468.00

Share capital 1,054,500,000.00 1,054,500,000.00 1,054,500,000.00

Retained earnings 3,083,637,540.00 2,540,747,460.00 2,132,558,080.00
Tax holiday reserve - - 909,754.00
Share Money Deposits - - -
Revaluation Reserve 501,202,886.00 510,764,343.00 662,540,409.00

Share Premium 441,835,000.00 441,835,000.00 441,835,000.00

SHAREHOLDERS'' 5,081,175,426.00 4,547,846,803.00 4,292,343,243.00
EQUITY- PARENT
COMPANY

Non-controlling interests 14,493,053.00 13,092,504.00 306,310,722.00

Total EQUITY 5,095,668,479.00 4,560,939,307.00 4,598,653,965.00

Long Term Debt 2,436,358,888.00 86,213,888.00 919,483,387.00
Deferred tax liability 446,204,090.00 408,605,069.00 439,794,176.00
Employee benefits 134,818,365.00 138,135,124.00 -

Loan from Directors 750,420,000.00 - -

Loan from shareholders - - 300,000,000.00
Deferred liability- - - 120,092,652.00
Gratuity

23
 Total Non-CURRENT 3,767,801,343.00 632,954,081.00 1,779,370,215.00
LIABILITIES
Trade payables/Creditors 1,756,914,122.00 663,822,817.00 390,470,587.00
& accruals
Short-term debt 1,530,000,000.00 510,420,000.00 -

Short Term bank loan 5,618,198,898.00 6,403,871,134.00 4,752,542,474.00

WPPF & WF 38,740,612.00 27,326,225.00 30,810,287.00
Payable for other finance 3,390,472.00 3,240,690.00 73,820,255.00
Current portion of term - - 533,529,278.00
loan& lease finance

Current tax liabilities 549,204,034.00 389,781,133.00 314,235,407.00

Current portion of long- 466,008,016.00 374,824,188.00 -
term debt
Total CURRENT 9,962,456,154.00 8,373,286,187.00 6,095,408,288.00
LIABILITIES
TOTAL LIABILITIES 13,730,257,497.00 9,006,240,268.00 7,874,778,503.00
TOTAL EQUITY AND 18,825,925,976.00 13,567,179,575.00 12,473,432,468.00
LIABILITIES

Book value per share 48.32 43.25 43.61

3.11.1 Income Statement in The Last Five Years

Particulars 2019 2018 2017

Revenue 11,999,430,660.00 10,049,865,124.00 10,332,898,832.00

Costs of Sales 10,287,601,525.00 8,532,980,778.00 8,634,603,931.00

Gross Profit 1,711,829,135.00 1,516,884,346.00 1,698,294,901.00

Other Operating 115,361,527.00 12,835,605.00 -

Income

General and 124,119,368.00 107,034,888.00 127,666,122.00

administrative
expenses

24
 Sales and 419,346,554.00 418,729,374.00 403,260,975.00
marketing/
Distribution
expenses
Other expenses - - 144,141,271.00

Operating Profit/ 1,283,724,740.00 1,003,955,689.00 1,023,226,534.00

(loss)

Contribution to 38,740,612.00 27,326,225.00 30,810,287.00

Workers'' Profit
Participation and
Welfare Funds
Finance Expenses 444,280,867.00 398,173,510.00 330,030,294.00

Share of profit/ 9,122,706.00 - -

(loss) in Associate
Company

Profit / (loss) 809,825,967.00 578,455,954.00 662,385,953.00

Before Tax

Income Tax (197,021,922.00) (136,273,323.00) (100,376,642.00)

Expense
Current Tax (159,422,901.00) (102,397,893.00) -

Deferred Tax (37,599,021.00) (33,875,430.00) -

Profit / (loss) for 612,804,045.00 442,182,631.00 562,009,311.00

the Period

Earnings Per 5.81 4.19 5.17

Share - Basic

3.11.3 Cash Flow Statement in The Last Five Years

Particulars 2019 2018 2017

Cash received from 12,244,950,544.00 9,762,979,193.00 9,829,879,336.00

customers

25
Payment to suppliers (10,525,651,769.0 (7,677,963,183.0 (8,355,729,950.00)
0) 0)

Payment to employees (379,148,702.00) (370,835,659.00) -

Income tax paid (457,671,361.00) (366,140,083.00) (148,930,382.00)

Interest Paid (421,418,145.00) (394,278,753.00) (335,375,848.00)

Dividend Paid (31,181,758.00) (210,698,034.00) -

Other receipts 27,742,615.00 - (142,661,853.00)

Other payments - (17,711,724.00) -

Advance Income Tax 180,819,064.00 - -

Refund

Other Cash flow from - - (158,625,087.00)

operating activities

Net Cash Generated 638,440,488.00 725,351,757.00 688,556,217.00

from Operating
Actvities

Purchase of Property, (589,846,765.00) (963,565,659.00) (887,221,581.00)

Plant & Equipment

Proceeds on Sale of 1,307,195.00 6,096,000.00 -

Property, Plant &
Equipment

Capital Work in (3,428,126,369.00 (829,329,383.00) (168,297,789.00)

Progress )

26
Capital expenditure- (556,716,491.00) (326,977,459.00) -
due from associated
companies

Investment in FDR 52,294,851.00 (10,285,389.00) 22,467,043.00

Net Cash Flow from (4,521,087,579.00 (2,124,061,890.0 (1,033,052,327.00)

Investing Activities ) 0)

Issuance of long-term 1,846,770,946.00 - -

debt

Repayment of Long- - (296,406,361.00) (601,664,343.00)

term debt

Lease Repayment 585,912,866.00 (53,913,526.00) (59,123,501.00)

Issuance (Repayment) (228,350,322.00) 1,213,776,351.00 905,817,707.00

of short-term debts

Proceeds/ - - -
(Redemption) from
Preference Shares

Loan from Director 1,770,000,000.00 510,420,000.00 -

Long term loan & - - -

lease finance

Other finance 149,782.00 - 898,072.00

Net Cash Flow 3,974,483,272.00 1,373,876,464.00 245,927,935.00

Financing Activities

Increase (decrease) in 91,836,181.00 (24,833,669.00) (98,568,175.00)

Cash

27
 Cash at the begning of 77,432,884.00 102,266,553.00 208,323,198.00
the period

Cash at the end of the 169,269,065.00 77,432,884.00 109,755,023.00

period

Cash Flow Per share 6.05 6.88 6.53

Chapter 4: Ratio Analysis & Trend Analysis of Premier Cement Mills Ltd

4.1 Liquidity Ratios

1. Current Ratio: The current ratio for Premier Cement Mills Ltd over the last three years is:

Years current assets Totals Industry

Current ratio= current liabilities Average

2017 Tk . 5,378,034,129.00 = 0.882 times 1.321 times

= Tk . 6,095,408,288.00

2018 6,664,333,480.00 = 0.796 1.349

= 8,373,286,187.00

28
 2019 8,602,766,773.00 = 0.864 1.039
= 9,962,456,154.00
Current Ratio
1.6
1.32 1.35
1.4

1.2
1.04
1
0.88 0.86
0.8
0.8

0.6

0.4

0.2

0
2017 2018 2019
Premier Industry

Comment: In 2019, Premier’s current ratio of 0.864 is below the average for its industry, 1.039,
so its liquidity position is somewhat weak. With a current ratio of 0.864, Premier could liquidate
current assets at only 116 percent of book value and still pay off its current creditors in full.
Same result happened in both 2017 and 2018 where Premier’s current ratio was below the
average for its industry.

2. Quick (Acid-Test) Ratio:

The quick ratio for Premier Cement Mills Ltd over the last three years is:

Years current assets−Inventory Totals Industry

Quick ratio=
current liabilities Average

2017 = = 0.719 times 1.122 times

Tk . 5,378,034,129.00−Tk . 995,614,178.00
Tk . 6,095,408,288.00

29
 2018 6,664,333,480.00−495,177,438.00 = 0.737 1.115
= 8,373,286,187.00

2019 8,602,766,773.00−877,510,398.00 = 0.775 0.831

= 9,962,456,154.00

Quick Ratio
1.12
1.2 1.12

1
0.83
0.74 0.78
0.72
0.8

0.6

0.4

0.2

0
2017 2018 2019

Premier Industry

Comment: In 2019, the Cement industry’s average quick ratio is 0.831 which is has declined
from previous year, but Premier’s ratio value of 0.775 is even lower in comparison with the
ratios of its competitors. This difference suggests that Premier’s level of inventories is relatively
high. Even so, if the accounts receivable can he collected, the company can pay off its current
liabilities even without having to liquidate its inventory.

4.2 Activity Ratios / Asset Management Ratios

1. Inventory Turnover:

The inventory turnover for Premier Cement Mills Ltd over the last three years is:

Years Cost of goods sold Totals Industry

Inventory Turnover =
Inventory Average

30
 2017 Tk . 8,634,603,931.00 = 8.673 times 7.833
= Tk 995,614,178.00 times

2018 8,532,980,778.00 = 17.232 6.547

= 495,177,438.00

2019 10,287,601,525.00 = 11.724 9.180

= 877,510,398.00

Inventory Turnover Ratio

20
18 17.23

16
14
11.72
12
10
8.67 9.18
7.83
8 6.55
6
4
2
0
2017 2018 2019

Premier Industry

Comment: In 2019, each item of Premier’s inventory was sold out and restocked, or “turned
over,” 11.724 times per year, which is considerably higher than the industry average of 9.18
times. The same case happened in both 2017 as well as 2018.
2. Days Sales Outstanding:

The Days Sales Outstanding for Premier Cement Mills Ltd over the last three years is:

Years Accounts receivable Totals Industry Average

DSO = Annual Sales
365

31
 2017 Tk . 2,399,092,653.00 = 84.746 days 85.625 days
= Tk .10,332,898,832.00
365

2018 2,404,625,585.00 = 84.941 114.701

= 10,049,865,124.00
365

2019 2,220,587,712.00 = 67.546 109.425

= 11,999,430,660.00
365

DSO Outstanding
140

120 114.7
109.43

100
85.63 84.94
84.75
80
67.55
DAYS

60

40

20

0
2017 2018 2019

Premier Industry

Comment: The DSO represents the average length of time that the firm must wait after
making a credit sale before receiving cash—that is, its average collection period. In 2019,
Premier has about 67.546 days of sales outstanding, somewhat lower than the 109.425-day
industry average.. If the trend in DSO over the past few years has been rising, but the credit
policy has not been changed, it would be even stronger evidence that the company should take
steps to improve the time it takes to collect accounts receivable.

3. Fixed Assets Turnover Ratio:

The Fixed Assets Turnover Ratio for Premier Cement Mills Ltd last three years is:

32
 Sales Totals Industry
Fixed asset turnover = assets ¿ Average
Net ¿
Years

2017 Tk . 10,332,898,832.00 = 1.456 times 1.953

= Tk . 7,095,398,340.00 times

2018 10,049,865,124.00 = 1.456 1.748

= 6,902,846,094.00

2019 11,999,430,660.00 = 1.174 1.568

= 10,223,159,205.00

Fixed Assets Turnover

2.5

1.95
2
1.75
1.57
1.46
1.5
1.46
1.17

0.5

0
2017 2018 2019

Premier Industry

Comment: In 2019, Premier’s ratio of 1.174 was below to the industry average, indicating that
the firm is using its fixed assets about as not efficiently as the other members of its industry. The
same result happened during 2017 and 2018.

4. Total Asset Turnover:

The Total Asset Turnover Ratio for Premier Cement Mills Ltd last three years is:

33
 Years Total asset turnover = Totals Industry
Sales Average
Total assets

2017 10,332,898,832.00 = 0.828 times 0.701

= 12,473,432,486.00 times

2018 10,049,865,124.00 = 0.741 0.673

= 13,567,179,574.00

2019 11,999,430,660.00 = 0.637 0.739

= 18,825,925,978.00

Total Assets Turnover

0.9
0.83
0.8 0.74 0.74
0.7
0.67
0.7 0.64
0.6
0.5
0.4
0.3
0.2
0.1
0
2017 2018 2019

Premier Industry

Comment: In 2019, Premier’s ratio was slightly lower than the industry average, indicating
that the company was not generating a sufficient volume of business given its investment in total
assets. To become more efficient, Premier should increase its sales, dispose of some assets, or
pursue a combination of these steps. Although in 2018 and 2017 Premier managed to keep itself
in a better position regarding using its assets as compared to the industry.

4.3 Debt Management Ratios

1. Debt Ratio: The Debt Ratio for Premier Cement Mills Ltd over last three years is:

34
 Total liabilities Totals Industry
Debt Ratio =
Total assets Average
Years

2017 Tk . 7,874,778,503.00 = 63.1% 69.6%

=
Tk . 12,473,432,468.00

2018 9,006,240,268.00 = 66.3% 62.2%

=
13,567,179,574.00

2019 13,730,257,497.00 = 72.9% 66.4%

=
18,825,925,978.00

Debt Ratio
74.00% 72.90%
72.00%
69.60%
70.00%
68.00% 66.30% 66.40%
66.00%
63.10%
64.00% 62.20%
62.00%
60.00%
58.00%
56.00%
2017 2018 2019

Premier Industry

Comment: In 2019, Premier’s debt ratio is almost 73 percent, which means that its creditors
have supplied slightly more than half of the firm’s total financing. Because the average debt ratio
for the industry is 66.4 percent, Premier might find it difficult to borrow additional funds without
first raising more equity capital through a stock issue. In 2018, although it had a slightly higher
debt ratio than the average, but in 2017, same Premier managed to keep its debt ratio lower than
the industry average.

2. Times-Interest-Earned Ratio: The Times interest earned ratio for Premier Cement Mills Ltd
last three years is:

35
 Times interest earned
( EBIT )
Years ratio = Totals Industry
Interest charges
Average

2017 Tk . 1,023,226,534.00 = 3.051 times 6.962

= Tk . 335,375,848.00 times

2018 1,003,955,689.00 = 2.546 5.943

= 394,278,753.00

2019 1,283,724,740.00 = 3.046 1.334

= 421,418,145.00
Interest Coverage
8
6.96
7
5.94
6
5
4
3.05 3.05
3 2.55

2 1.33
1
0
2017 2018 2019

Premier Industry

Comment: In 2019, Premier’s interest was covered 3.046 times. Because the industry average
was 1.334 times, compared with firms in the same business, Premier was covering its interest
charges by a high margin of safety. Its TIE ratio reinforces our conclusion based on the debt ratio
that Premier probably would not face difficulties if it attempted to borrow additional funds.

4.4 Profitability Ratios

36
1. Net Profit Margin: The Net profit margin ratio for Premier Cement Mills Ltd over last three
years is:
Net profit margin =
Years Net Profit Totals Industry Average
Sales

2017 Tk .562,009,311.00 = 5.4% 9.8%

=
Tk . 10,332,898,832.00

2018 442,182,631.00 = 4.4% 3.2%

=
10,049,865,124.00

2019 612,804,045.00 = 5.1% 2.1%

=
11,999,430,660.00

Net Profit Margin

12.00%
9.80%
10.00%

8.00%

5.40%
6.00% 5.10%
4.40%
4.00% 3.20%
2.10%
2.00%

0.00%
2017 2018 2019

Premier Industry

Comment: In 2019, Premier’s net profit margin was higher than the industry average of 2.10
percent, indicating that its sales might be good, its costs might be low. In 2018, the firm had
higher profit margin too, but in 2017, Premier’s net profit margin was lower than the industry
average of 9,80 percent, indicating that its sales might be too low, its costs might be too high, or
both.

37
2. Earnings per Share (EPS): The Earnings per share for Premier Cement Mills Ltd over the
last five years is:
EPS
Years ¿ Net income available ¿ common stockholders Totals Industry
¿
Number of shares of common stock outstanding
Average

2017 562,009,311.00 = Tk. 5.33 Tk. 6.81

=
105,450,000

2018 442,182,631.00 =Tk. 4.19 Tk. 3.62

=
105,450,000

2019 612,804,045.00 =Tk. 5.81 Tk. 3.80

=
105,450,000

EPS
8
6.81
7
5.81
6
5.33
BDT in amount

5 4.19
3.62 3.8
4
3
2
1
0
2017 2018 2019

Premier Industry

Comment: In 2019 and 2018, Premier had higher earning per share than its industry average,
but in 2017, the value was lower than industry average. This figure represents the dollar amount
earned on behalf of each outstanding share of common stock.

38
3. Return on Total Assets (ROA): The Return on total assets ratio for Premier Cement Mills
Ltd over last three years is:

ROA
Years ¿ Net income available ¿ common stockholders Totals
¿ Industry
Total assets
Average

2017 562,009,311.00 = 4.5% 2.9%

=
12,473,432,468.00

2018 442,182,631.00 = 3.3% 2.7%

=
13,567,179,574.00

2019 612,804,045.00 =3.3% 2.8%

=
18,825,925,978.00

ROA Ratio
5.00%
4.50%
4.50%
4.00%
3.50% 3.30% 3.30%
2.90% 2.80%
3.00% 2.70%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
2017 2018 2019

Premier Industry

Comment: From 2017 to 2019, Premier’s percent return on assets was well higher than percent
average for the cement industry. This high return results from the company’s lower-than-average
use of debt.

4. Return on Common Equity (ROE): The Return on total equity ratio for Premier Cement
Mills Ltd over the last three years is:
39
 ROE
Years ¿ Net income available ¿ common stockholders Totals
¿ Industry
Total equity Average

2017 562,009,311.00 = 12.2% 8.2%

=
4,598,653,965.00

2018 442,182,631.00 = 9.7% -3.3%

=
4,560,939,307.00

2019 612,804,045.00 =12% -78.9%

=
5,095,668,479.00

ROE Ratio
20.00%
12.20% 9.70%
8.20%
3.30%
-3.30%
0.00%

-20.00%

-40.00%

-60.00%
-78.90%
-80.00%

-100.00%
2017 2018 2019

Premier Industry

Comment: Premier’s percent return was higher than the industry average from 2017 to 2018.
This result follows from the company’s lesser use of debt (leverage).

4.5 Market Ratios

40
1. Price/Earnings (P/E) Ratio: The Price/earnings (P/E) ratio for Premier Cement Mills Ltd
over the last three years is:

Price/earnings (P/E) ratio

Years Totals Industry
=
Market price per share of common stock Average
Earnings per share

2017 Tk . 81.07 = 15.21 times

=
Tk . 5.33

2018 Tk . 77.43 = 18.48

=
Tk . 4.19

2019 Tk . 70.20 =12.08 21.00 times

=
Tk . 5.81

P/E Ratio
25
21
20 18.48
15.21
15
12.08

10

0
2017 2018 2019

Premier Industry

Comment: Other things held constant, P/E ratios are higher for firms with high growth prospects
and lower for riskier firms. In 2019, Premier’s P/E ratio was lower than those of other cement
manufacturers, it suggests that the company is regarded as being somewhat riskier than most of
its competitors, as having poorer growth prospects, or both.

41
2. Market/Book (M/B) Ratio: The Market/book (M/B) ratio for Premier Cement Mills Ltd over
the last three years is:

Market/book (M/B) ratio =

Years Market price per share Totals Industry
Book value per share Average

2017 Tk . 81.07 = 1.859 times

=
Tk . 43.61

2018 Tk . 77.43 = 1.790

=
Tk .43 .25

2019 Tk . 70.20 =1.453

=
Tk . 48.32

M/B Ratio
2 1.79
1.86
1.8
1.6 1.45
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2017 2018 2019

Industry

Comment: Premier’s M/B ratio has declined over the last three years. But, Clearly, Premier’s
future prospects are being viewed favorably by investors, who are willing to pay more than its
book value for the firm’s shares

42
PART TWO

43
 Chapter 5: Overview of Aamra Networks Limited

Aamra recognizes the power that partnership and cooperation have in achieving any goal. It
believes that by harnessing the strength of togetherness with all our stakeholders, it will be able
to surmount any obstacle in their path and scale new heights. Accordingly, its products and
services are meant to create value of unity in relations to their business partners, shareholders as
well as to our employees and society in general.

Aamra networks limited (ANL) employs more than 327 employees with diverse skill sets and
expertise. Through years of experience ANL is able to accurately assess constantly changing
customer requirements, offering the most extensive and affordable IT services available.

ANL places due importance on quickly adopting new technology by investing 30% of its budget
for R&D. The company also strives to maintain international standard products and services;
ANL is upholding ISO9001:2008 certification for the last 8 years.

The company is one of the 11 concerns of aamra companies. The group has diversified
investment in ICT, Textile, and Lifestyle sectors in Bangladesh. Starting in 1985 the group
presently has over 500 employees.

5.1 Company Profile

Name Aamra Networks Limited

Activity Baamndrwa indethtw doirsktsri blimutiitoend, (IAANALS), iSs AaAnS
I Ta cnodm IpP aennya ibnlveodl vveadl uine Laedadseedd
sSeerrvviiccees P. rAoNviLd eisr so (nISeP )o ifn tBhaen gfilrasdte
pshri.
Fin. Year End June
Incorporation 2001
Commencement of 10 Jan, 2001
Operation
Script Code DSE – 22649 CSE – 24010
Listing Year DSE – 2017 CSE – 2017
Debut Trading DSE – 02 Oct, 2017CSE – 02 Oct, 2017
Date
Web http://www.aamranetworks.com
Email info@networks.com.bd

44
5.2 Stock Statistics

Market Capitalization -BDT(mn) 1,866.63

Authorized Capital -BDT(mn) 1,000.00
Paid Up Capital -BDT(mn) 562.24
Total Shares 56,223,682
Market Lot 1
Market Category A
Credit Rating LT:A+ & ST-2
Last Divident Declaration Date 30-Oct-19
AGM Date 26-Dec-19
P/E (Audited) as on 31-May-2020 8.3
P/E (Interim) as on 31-May-2020 9.27

5.3 Shareholding Pattern   

5.4 Board of Directors

45
 Chairman Syed Faruque Ahmed

Managing Director& Syed Farhad Ahmed

CEO

Director Ms. Fahmida Ahmed

Director Ms. Syeda Munia Ahmed

Independent Director Mr. Mahbub Mustafizur

Rahman

5.5 Vision & Mission

Vision: Excellence and innovation unlimited, through the power of “WE” 

Mission: To empower their customers, employees, partners and communities by providing the
finest products, services and practices.

5.6 Product & Services

46
aamra networks limited is the authorized distributor of the world-renowned brands that cater to
the Government Organizations, Multinational Companies, International Organization,
Manufacturing Industries, Financial Institutions and Small & Medium Businesses in Bangladesh.
We make every effort to offer quality products and outstanding services that ensure utmost client
satisfaction. Product & Service Portfolio is given below:

5.7 Financial Statement of Aamra Networks Limited in the Last Three Years

47
5.7.1 Balance Sheet Statement
Particulars 2019 2018 2017
Property, plant and equipment 1,013,795,561.00 957,496,957.00 643,230,633.00
Capital work- in -progress - - 91,171,085.00
Intangible assets/Goodwill 13,847,826.00 17,309,783.00 21,399,728.00
Advance, deposit & prepayments 11,755,010.00 9,857,510.00 9,287,510.00
Total non-current assets 1,039,398,397.00 984,664,250.00 765,088,956.00
Inventories 340,996,779.00 274,652,675.00 225,365,844.00
Trade,Bill and other receivables 323,477,346.00 293,133,078.00 127,320,438.00
Advance, deposit and prepayments 318,142,659.00 229,686,755.00 179,480,740.00
Cash and cash equivalents 31,441,308.00 109,621,323.00 39,376,541.00
Total current assets 1,014,058,092.00 907,093,831.00 571,543,563.00
TOTAL ASSETS 2,053,456,489.00 1,891,758,081.0 1,336,632,519.00
0
Share capital 530,412,090.00 530,412,090.00 380,000,000.00
Share premium 542,488,192.00 542,488,192.00 159,131,807.00
Retained earnings 800,684,416.00 641,695,458.00 482,299,963.00
Total equity 1,873,584,698.00 1,714,595,740.0 1,021,431,770.00
0
Non-current liabilities 0.00 - -
Deferred tax liability 19,520,087.00 15,418,851.00 16,247,568.00
Total non-current liabilities 19,520,087.00 15,418,851.00 16,247,568.00
Lease liabilities 2,537,647.00 3,172,106.00 4,071,473.00
Short term loan 55,207,684.00 53,457,234.00 237,903,353.00
Accrued expenses/Provision for 24,508,196.00 21,920,103.00 18,481,896.00
expenses
Provision for Beneficiaries’ Profit 15,569,254.00 21,178,055.00 10,046,135.00
Partticipation & Welfare Fund
(BPP&WF)
Trade,Bills and other payables 35,951,709.00 27,072,895.00 11,956,904.00
Dividend payable 8,543,004.00 7,419,260.00 -
Provision for tax 18,034,211.00 27,523,836.00 16,493,421.00
Total current liabilities 160,351,705.00 161,743,489.00 298,953,182.00
Total Liabilities 179,871,792.00 177,162,340.00 315,200,750.00
TOTAL EQUITIES AND 2,053,456,490.00 1,891,758,080.0 1,336,632,520.00
LIABILITIES 0
Net Asset Value (NAV) per share 35.32 32.33 19.26

5.7.2 Income Statement

48
 Particulars 2019 2018 2017

Net Operating Revenue 1,132,418,024.00 949,509,019.00 795,520,446.00

Cost of goods said & services 693,389,922.00 543,182,984.00 484,487,525.00

Gross Profit 439,028,102.00 406,326,035.00 311,032,921.00

Operating expenses 189,387,091.00 164,853,899.00 159,519,387.00

Financial expenses 8,677,083.00 14,451,140.00 13,182,341.00

Operating Profit 240,963,928.00 227,020,996.00 138,331,193.00

Other income/Indirect Income 794,235.00 6,749,327.00 173,269.00

Loss on sale of vehicle - - (212,800.00)

Loss on fire 3,751,668.00 - -

Profit before WPPF 238,006,495.00 233,770,323.00 138,291,662.00

Beneficiaries’ Profit Participation & 11,333,643.00 11,131,920.00 6,585,317.00

Welfare Fund (EIPP&WF)

Profit before income tax 226,672,852.00 222,638,403.00 131,706,345.00

Current tax (10,541,449.00) (11,030,414.00 (9,000,660.00)

)
Deferred tax (4,101,236.00) 828,717.00 (431,182.00)

Income tax expenses (14,642,685.00) (10,201,697.00 (9,431,842.00)

)
Net Profit after Income tax 212,030,167.00 212,436,706.00 122,274,503.00

Total comprehensive income 212,030,167.00 212,436,706.00 122,274,503.00

Earnings per share (EPS) 4.00 4.01 2.31

5.7.3 Cash Flow Statement

49
 Particulars 2019 2018 2017
Cash received from customers & 1,102,867,991.00 790,445,706.00 765,098,182.00
others
Cash paid to suppliers and (621,247,166.00) (479,559,872.00) (491,419,815.00)
employees
Cash generated from/ (paid for) (257,395,740.00) (165,932,027.00) (189,761,917.00)
Operating Activities
Finance expenses paid (8,677,083.00) (14,451,140.00) (13,182,341.00)
Income tax paid (17,878,657.00) (12,461,813.00) (19,232,287.00)
Loss Due to fire (Cash in hand) (246,222.00) - -
Net cash provided from operating 197,423,123.00 118,040,854.00 51,501,822.00
activities
Purchase of Property, Plant & (224,801,663.00) (350,397,114.00) (83,559,053.00)
Equipment
Sales of property, plant & - - 1,400,000.00
equipment
Capital work-in -progress - - (91,171,085.00)
Acquisition of Intangible assets - (200,000.00) -
Addition/Disposal of non-current - - -
assets
Net cash used in investing acuities (224,801,663.00) (350,597,114.00) (173,330,138.00)
Short-term loan received 1,750,449.00 - 144,104,150.00
Short-term loan paid - (184,446,119.00) -
Dividend paid (51,917,465.00) (45,621,949.00) -
Proceeds from issue of share - 533,768,475.00 -
capital /Equity Share
Lease liabilities paid (634,459.00) (899,367.00) -
Lease liabilities received - - 3,106,600.00
Net Cash Used in financing (50,801,475.00) 302,801,040.00 147,210,750.00
Activities
Net Increase/ Decrease in cash & (78,180,015.00) 70,244,780.00 25,382,434.00
cash equivalent (A+B+C)
Cash & Cash equivalent at 109,621,323.00 39,376,541.00 13,994,108.00
Beginning
Cash & Cash equivalent at Closing 31,441,308.00 109,621,321.00 39,376,542.00
NOCFPS 3.72 2.23 0.97

Chapter 6: Ratio Analysis & Trend Analysis of Aamra Networks Limited

50
6.1 Liquidity Ratios

1. Current Ratio: The current ratio for Aamra Networks Limited over the last three years is:

Years current assets Totals Industry

Current ratio=
current liabilities Average

2017 Tk . 571,543,563.00 = 1.912 times 3.922 times

=
Tk . 298,953,182.00

2018 907,093,831.00 = 5.608 3.607

=
161,743,489.00

2019 1,014,058,092.00 = 6.324 3.948

=
160,351,705.00

Current Ratio
7
6.32
6 5.61

5
3.95
4 3.61

3
1.91
2
1.32
1

0
2017 2018 2019

Aamra Industry

Comment: In 2019, Aamra’s current ratio of 6.324 was above the average for its industry, 3.948,
so its liquidity position was somewhat strong. With a current ratio of 6.324, Premier could
liquidate current assets at 16 percent of book value and still pay off its current creditors in full.
Same result happened in both 2017 and 2018 where Aamra’s current ratio was above the average
for its industry.

51
2. Quick (Acid-Test) Ratio: The quick ratio for Aamra Networks Limited over the last three
years is:

Years current assets−Inventory Totals Industry

Quick ratio=
current liabilities Average

2017 Tk . 571,543,563.00−Tk . 225,365,844.00 = 1.15 times 3.303 times

= Tk . 298,953,182.00

2018 907,093,831.00−274,652,675.00 = 3.910 2.647

= 161,743,489.00

2019 1,014,058,092.00−340,996,779.00 = 4.197 3.257

= 160,351,705.00

Quick Ratio
4.5 4.2
3.91
4
3.53.3 3.26

3 2.65
2.5
2
1.5
1.15
1
0.5
0
2017 2018 2019

Aamra Industry

Comment: In 2019, the IT industry's average quick ratio was 3.252 which has increaased from
previous year 2018, and Aamra’s ratio value of 4.197 is even higher in comparison with the
ratios of its competitors. This difference suggests that Aamra’s level of inventories is relatively
high. Even so, if the accounts receivable can be collected, the company can pay off its current
liabilities even without having to liquidate its inventory.

52
6.2 Activity Ratios / Asset Management Ratios

1. Inventory Turnover: The inventory turnover for Aamra Networks Limited over the last
three years is:

Years Cost of goods sold Totals Industry

Inventory Turnover =
Inventory Average

2017 Tk . 484,487,525.00 = 2.150 times 4.638 times

= Tk . 225,365,844.00

2018 543,182,984.00 = 1.978 5.306

= 274,652,675.00

2019 693,389,922.00 = 2.033 5.669

= 340,996,779.00

Inventory Turnover Ratio

6 5.67
5.31
5
4.64

3
2.15 1.98 2.03
2

0
2017 2018 2019

Aamra Industry

Comment: In 2019, each item of Aamra’s inventory was sold out and restocked, or “turned
over,” 2.033 times per year, which is considerably lower than the industry average of 5.669
times. The same case happened in both 2017 as well as 2018. This ratio suggests that Aamra is
holding excess stocks of inventory; excess stocks are, of course, unproductive and represent an
investment with a low or zero rate of return. With such a low turnover, we must wonder whether
Aamra is holding damaged or obsolete goods that are not actually worth their stated value.

53
2. Days Sales Outstanding: The Days Sales Outstanding for Aamra Networks Limited over the
last three years is:

Accounts receivable
Years DSO = Annual Sales Totals Industry
365 Average

2017 127,320,438.00 = 58.417 days 211.571 days

= 795,520,446.00
365

2018 293,133,078.00 = 112.683 214.580

= 949,509,019.00
365

2019 323,477,346.00 = 104.263 181.110

= 1,132,418,024.00
365

DSO Outstanding
250
211.57 214.58

200 181.11

150
DAYS

112.68
104.26
100

58.42
50

0
2017 2018 2019

Aamra Industry

Comment: In 2019, Premier has about 104.263 days of sales outstanding, somewhat lower than
the 181.11-day industry average. The DSO also can be evaluated by comparing it with the terms
on which the firm sells its goods. For example, Aamra’s sales terms call for payment within 30
days, so the fact that sales are outstanding an average of 104 days indicates that customers
generally are not paying their bills on time. Same case happened during 2018 and 2018.

54
3. Fixed Assets Turnover Ratio: The Fixed Assets Turnover Ratio for Aamra Networks
Limited over the last three years is:

Sales
Years Fixed asset turnover = assets ¿ Totals Industry
Net ¿
Average

2017 795,520,446.00 = 1.040 times 1.260 times

= 765,088,956.00

2018 949,509,019.00 = 0.964 1.197

= 984,664,250.00

2019 1,132,418,024.00 = 1.089 1.192

= 1,039,398,397.00

Fixed Assets Turnover

1.4
1.26
1.2 1.19
1.2 1.09
1.04 0.96
1

0.8

0.6

0.4

0.2

0
2017 2018 2019

Aamra Industry

Comment: In 2019, Aamra’s ratio of 1.089 was below to the industry average, indicating that
the firm was using its fixed assets about as not efficiently as the other members of its industry.
The same result happened during 2017 and 2018.

55
4. Total Asset Turnover: The Total Asset Turnover Ratio for Aamra Networks Limited over the
last three years is:

Sales
Years Total asset turnover = Totals Industry
Total assets
Average

2017 795,520,446.00 = 0.595 times 0.481 times

=
1,336,632,519.00

2018 949,509,019.00 = 0.502 0.453

=
1,891,758,081.00

2019 1,132,418,024.00 = 0.551 0.482

=
2,053,456,489.00

Total Assets Turnover

0.7
0.6
0.6 0.55
0.48 0.5 0.48
0.5 0.45

0.4

0.3

0.2

0.1

0
2017 2018 2019

Aamra Industry

Comment: In 2019, Aamra’s ratio was somewhat higher than the industry average, indicating
that the company is generating a sufficient volume of business given its investment in total
assets. To become more efficient, Premier should increase its sales, dispose of some assets, or

56
pursue a combination of these steps. Also, in 2018 and 2017 Aamra managed to keep itself in a
better position regarding using its assets as compared to the industry.

6.3 Debt Management Ratios

1. Debt Ratio: The Debt Ratio for Aamra Networks Limited over the last three years is:
Debt Ratio =
Years Total liabilities Totals Industry
Total assets Average

2017 315,200,750.00 = 23.6% 44.9%

=
1,336,632,519.00

2018 177,162,340.00 = 9.4% 41.9%

=
1,891,758,081.00

2019 179,871,792.00 = 8.8% 23.9%

=
2,053,456,489.00

Debt Ratio
50.00%
44.90%
45.00% 41.90%
40.00%
35.00%
30.00%
23.60% 23.90%
25.00%
20.00%
15.00%
9.40% 8.80%
10.00%
5.00%
0.00%
2017 2018 2019

Aamra Industry

57
Comment: In 2019, Aamra’s debt ratio is almost 9 percent, which means that its creditors
have supplied less than half of the firm’s total financing. Because the average debt ratio for the
industry is 23.90 percent, Aamra might find it easy to borrow additional funds without first
raising more equity capital through a stock issue. Creditors might be willing to lend the firm
more money. Same result happened in both 2017 and 2918.

2. Times-Interest-Earned Ratio: The Times interest earned ratio for Aamra Networks Limited
over the last three years is:

Times interest earned

Years ( EBIT ) Totals Industry
ratio = Average
Interest charges

2017 138,331,193.00 = 9.991 times

=
13,845,581.00

2018 227,020,996.00 = 15.406 15.12

=
14,735,882.00

2019 240,963,928.00 = 26.123 12.88

=
9,224,206.00

Interest Coverage
30
26.12
25

20
15.41
15.12
15 12.88
9.99
10

0
2017 2018 2019

Aamra Industry

58
Comment: In 2019, Aamra’s interest was covered 26.123 times. Because the industry average is
12.88 times, compared with firms in the same business, Premier is covering its interest charges
by a high margin of safety. In 2018, Aamra’s interest was covered 25.406 times, also higher than
the industry average.

6.4 Profitability Ratios

1. Net Profit Margin: The Net profit margin ratio for Aamra Networks Limited over the last
three years is:

Net Profit
Years Net profit margin = Totals Industry
Sales
Average

2017 122,274,503.00 = 15.4% 11.9%

=
795,520,446.00

2018 212,436,706.00 = 22.4% 15.5%

=
949,509,019.00

2019 212,030,167.00 = 18.7% 13.4%

=
1,132,418,024.00

59
 Net Profit Margin
25.00%
22.40%

20.00% 18.70%

15.40% 15.50%
15.00% 13.40%
11.90%

10.00%

5.00%

0.00%
2017 2018 2019

Aamra Industry

Comment: In 2019, Aamra’s net profit margin is higher than the industry average of 18.70
percent, indicating that its sales might be good, its costs might be low. In 2018 and 2017, the
firm had higher profit margin too.

2. Earnings per Share (EPS): The Earnings per share for Aamra Networks Limited over the
last three years is:
EPS
Years ¿ Net income available ¿ common stockholders Totals Industry
¿
Number of shares of common
Averagestock outstanding

2017 122,274,503.00 = Tk. 2.31 Tk. 1.33

=
380,000,000.00

2018 212,436,706.00 = Tk. 4.01 Tk. 1.58

=
530,412,090.00

2019 212,030,167.00 =Tk. 4.00 Tk. 1.61

=
530,412,090.00

60
 EPS
4.5
4.01 4
4
3.5
BDT in am ount

3
2.31
2.5
2 1.58 1.61
1.33
1.5
1
0.5
0
2017 2018 2019

Aamra Industry

Comment: From 2017 to 2019, Aamra had higher earnings per share than its industry average.
This figure represents the dollar amount earned on behalf of each outstanding share of common
stock.

3. Return on Total Assets (ROA): The Return on total assets ratio for Aamra Networks Limited
over the last three years is:

Net income
Years ROA ¿ Totals Industry
Total assets
Average

2017 122,274,503.00 = 9.1% 6.2%

=
1,336,632,519.00

2018 212,436,706.00 = 11.2% 6.9%

=
1,891,758,081.00

2019 212,030,167.00 =10.3% 6.4%

=
2,053,456,489.00

61
 ROA Ratio
12.00% 11.20%

10.00%
9.10%

8.00% 6.90%
6.20% 6.40%
6.00%

4.00% 3.30%

2.00%

0.00%
2017 2018 2019

Aamra Industry

Comment: From 2017 to 2018, Aamra’s percent return on assets is well higher than percent
average for the IT industry. This high return results from the company’s lower-than-average use
of debt. But, in 2019 their ROA ratio declined as well as below the industry average. This high
return results from the company’s greater-than-average use of debt.

4. Return on Common Equity (ROE): The Return on total equity ratio for Aamra Networks
Limited over the last three years is:

Net income
Years ROE ¿ Totals Industry
Total equity
Average

2017 122,274,503.00 = 12% 8.4%

=
1,021,431,770.00

2018 212,436,706.00 = 12.4% 9%

=
1,714,595,740.00

2019 212,030,167.00 =11.3% 8.4%

=
1,873,584,698.00
62
 ROE Ratio
14.00%
12.00% 12.40%
12.00% 11.30%

10.00% 9.00%
8.40% 8.40%
8.00%

6.00%

4.00%

2.00%

0.00%
2017 2018 2019

Aamra Industry

Comment: Premier’s percent return was higher than the industry average from 2017 to 2019.
This result follows from the company’s lesser use of debt (leverage).

6.5 Market Ratios

1. Price/Earnings (P/E) Ratio: The Price/earnings (P/E) ratio for Aamra Networks Limited over
the last three years is:

(P/E) ratio=
Years Market price per share of common stock Totals Industry
Earnings per share Average

2017 Tk . 58.09 = 25.15 times

=
Tk . 2.31

2018 Tk . 103.05 = 25.70

=
Tk .4 .01

63
 2019 Tk .33.2 =8.0 31.11 times
=
Tk . 4.00

P/E Ratio
8
6.96
7
5.94
6
5
4
3.05 3.05
3 2.55

2 1.33
1
0
2017 2018 2019

Premier Industry

Comment: Other things held constant, P/E ratios are higher for firms with high growth prospects
and lower for riskier firms. In 2019, Aamra’s P/E ratio was higher than those of others, it
suggests that the company was regarded as not riskier than most of its competitors, as having
higher growth prospects. But in 2018 and 2017, Aamra’s P/E ratio was lower than the industry
average.

2. Market/Book (M/B) Ratio: The M/B ratio for Aamra Networks Limited over the last three
years is:

Market price per share

Years M/B ratio = Totals
Book value per share

2017 Tk . 58.09 = 3.016 times

=
Tk .19 .26

2018 Tk . 103.05 = 3.187

=
Tk . 32.33

64
 2019 Tk . 33.2 =0.940
=
Tk . 35.32

M/B Ratio
3.5 3.19
3
3.02

2.5
2
1.5
0.94
1
0.5
0
2017 2018 2019

Aamra

Comment: The M/B ratio for Aamra Networks Limited over the last three years was
inconsistent, as in 2018 it was a bit higher than 2017, but in 2019 it declined badly. But still
Aamra’s future prospects are being viewed favorably by investors, who are willing to pay more
than its book value for the firm's shares

Chapter 7: Finding of the Study

7.1 Findings from Data analysis of Premier Cement Mills Ltd

Ratios Ratio Value for 2019 Industry Average for Comment

2019

1. Liquidity

Current Ratio 0.864 times 1.039 times Low

65
Quick Ratio 0.775 times 0.831 times Low

2. Asset Management

Inventory Turnover 11.724 times 9.180 times High

Days Sales Outstanding 67.546 days 109.425 days Good

Fixed Assets Turnover 1.174 times 1.568 times Poor

Total Asset Turnover = 0.637 times 0.739 times Poor

3. Debt Management

Debt to Total Assets 72.9% 66.4% Poor

Interest Coverage =3.046 times 1.334 times Good

4. Profitability

Net Profit Margin 5.1% 2.1% Good

EPS Tk. 5.81 Tk. 3.80 Good

ROA 3.3% 2.8% Good

ROE 12% -78.9% Good

Comment:
 In 2019, Premier’s current ratio and quick ratio were below the average for its industry,
so its liquidity position is somewhat weak. Same result happened in both 2017 and 2018
where Premier’s current ratio was below the average for its industry.
 In 2019, each item of Premier’s inventory was sold out and restocked, or “turned over,”
11.724 times per year, which is considerably higher than the industry average of 9.18
times. Premier had about 67.546 days of sales outstanding, somewhat lower than the
109.425-day industry average. But, Premier’s total asset turnover ratio of 1.174 was
below to the industry average, indicating that the firm is using its fixed assets about as
66
 not efficiently as the other members of its industry.
 Although, Premier was covering its interest charges by a high margin of safety, but its
debt ratio is almost 73 percent, which means that its creditors have supplied slightly more
than half of the firm’s total financing.
 In 2019, Premier’s profitability ratios were all higher than its industry average, indicating
that its sales might be good, its costs might be low.

7.2 Findings from Data analysis of Aamra Network Limited

Ratios Ratio Value for 2019 Industry Average for Comment

2019

1. Liquidity

Current Ratio 6.324 times 3.948 times High

Quick Ratio 4.197 3.257 High

2. Asset Management

67
Inventory Turnover 2.033 times 5.669 times Low

Days Sales Outstanding 104.263 days 181.110 days Good

Fixed Assets Turnover 1.089 times 1.192 times OK

Total Asset Turnover 0.551 times 0.482 times High

3. Debt Management

Debt to Total Assets 8.8% 23.9% Good

Interest Coverage 26.123 times 12.88 times Good

4. Profitability

Net Profit Margin 18.7% 13.4% Good

EPS Tk. 4.00 Tk. 1.61 Good

ROA 10.3% 6.4% Good

ROE 11.3% 8.4% Good

5. Market Value

Price/Earning (P/E) 8.0 times 31.11 times Low

Comment:
 In 2019, Aamra’s current ratio and quick ratio were above the average for its industry, so
its liquidity position is somewhat strong. With a current ratio of 6.324, Premier could
liquidate current assets at 16 percent of book value and still pay off its current creditors in
full.
 In 2019, each item of Aamra’s inventory was sold out and restocked, or “turned over,”
2.033 times per year, which is considerably lower than the industry average of 5.669
times. The same case happened in both 2017 as well as 2018. With such a low turnover,
we must wonder whether Aamra is holding damaged or obsolete goods that are not
actually worth their stated value. Aamra has about 104.263 days of sales outstanding,

68
 somewhat lower than the 181.11-day industry average which is good comparatively.
 In 2019, Aamra’s total asset turnover ratio was somewhat higher than the industry
average, indicating that the company is generating a sufficient volume of business given
its investment in total assets.
 In 2019, Aamra’s debt ratio is almost 9 percent, which means that its creditors have
supplied less than half of the firm’s total financing. It was also covering its interest
charges by a high margin of safety.
 In 2019, Aamra’s profitability ratios were all higher than its industry average, indicating
that its sales might be good, its costs might be low.
 In 2019, Aamra’s P/E ratio was higher than those of others, it suggests that the company
was regarded as not riskier than most of its competitors, as having higher growth
prospects. But in 2018 and 2017, Aamra’s P/E ratio was lower than the industry average.

Chapter 8: Recommendations & Conclusion

8.1 Recommendations

Premier Cement Mills Ltd:

 Its liquidity position was somewhat weak. It could switch from Short-term debt to Long-
term debt, or get rid of useless assets, or control your overhead expenses to need cash
emergencies.

69
  Premier’s fixed assets turnover ratio was slightly lower than the industry average,
indicating that the company was not generating a sufficient volume of business given its
investment in total assets. To become more efficient, Premier should increase its sales,
dispose of some assets, or pursue a combination of these steps.

 As, premier has higher debt to total assets ratio, it needs to lower the same. The company
can issue new or additional shares to increase its cash flow, or can focus heavily on
increasing sales but without any increase in overhead expenses. The increase in sales can
be used to reduce the debt and improve the debt to total asset ratio.

 One of the best ways to improve financial situation is to reduce expenses. Premier should
take a look at every area of their business and see if they can find cheaper alternatives for
supplies, equipment and services.

 They should See if they can find better terms for bank accounts and insurance policies.
For larger expenses, they can arrange periodic or deferred payments to keep more cash
available.

 If marketing isn’t up to date, this is a good time to look for ways to improve it. Consider
all of the latest marketing options and platforms, such as email, social media, video and
retargeted advertising.

Aamra Network Limited:

 To make more improvements on the firm’s financial position, Aamra have to assess every
aspect of their business and identify areas that need improvement.

 Aamra also may evaluate how their business is doing as compares to others in IT
industry. With ratios, there is no “magic number” a business should strive for—every
company and every industry is different. Knowing the industry average, however, gives

70
 you a general sense of where you want to be. Aamra may use these as benchmarks to see
how it stacks up next to the competition and to set realistic improvement goals.

 When it’s feasible, lowering your prices is always a good way to drum up business and
improve your business’s financial position. Of course, you have to make sure you’re not
losing money. However, in some cases, even a slight markdown helps make your
products or services more appealing to customers.

 While lowering prices often helps you get more customers, in some cases, the opposite
strategy is a better option. Some businesses offer prices that are below market, perhaps
because they haven’t adjusted them in a few years. If you can increase your prices
without losing too many customers, you may find that this is a good way to improve your
financial business position.

8.2 Conclusion

Financial statements provide information about a firm's position at a point in time as well as its
operations over some past period. Nevertheless, the real value of financial statements lies in the
fact that they can be used to help predict the firm’s financial position in the future and to
determine expected earnings and dividends. Financial ratios offer entrepreneurs a way to
evaluate their company’s performance and compare it other similar businesses in their industry.

71
They are used most effectively when results over several periods are compared. This allows you
to follow your company’s performance over time and uncover signs of trouble.

From the study, it seemed that Premier Cement is one of the largest and most renowned cement
brand in Bangladesh, the demand for Premier Cement has been increasing day by day. Now they
have a remarkable production capacity of 2.4 Million Metric Tons per annum. On the other hand,
Aamra networks limited (formerly Global Online Services Limited) over the last decade has
consistently provided its customers with state-of-the-art IT communication solutions. Its clients
have been able to rely on its ability to provide stable and consistent connectivity solutions.

To conclude we must say that both of the company has a relatively good financial position
among their respective industry. Although, Premier Cement must improve their financial
performance whereas Aamra Network Limited has a strong financial position as its all the ratio
seem to stand strongly against its other competitors.

References
 https://www.lankabd.com/Home/Error?
statusCode=400&host=www.lankabd.com&path=/Home/DataMatrix&qs=
 http://www.premiercement.com/page/investors-premier.html
 https://www.aamranetworks.com/#
 https://www.cse.com.bd/
 https://www.dsebd.org/latest_share_price_scroll_l.php

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  https://www.bdc.ca/en/articles-tools/money-finance/manage-finances/pages/financial-
ratios-what-are-how-use.aspx

 https://www.rivierafinance.com/finance-blog/how-to-improve-your-businesss-financial-
position/

Bibliography

1. Essential of Managerial Finance by

 Scott Besley

 Eugene Brigham

2. Principles of Managerial Finance by

 Lawrence J Gitman

 Chad J. Zutter

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