Bangladesh steel re-rolling Mills Ltd.

HISTORY AND BACKGROUND :

Bangladesh steel re-rolling Mills Ltd. is a unit of well known H. AKBER ALI Group of industries having 50 years experience exclusively in steel making is the only fully automatic steel re-rolling mill in the country. The company was incorporated on 28th December, 1960 as a private limited company under the Company Act, 1913. The founder of the group was late Mr. AKBER ALI a Africawala and is now managed by his sons and nephews. The head office of the company is situated at Sadarghat Road, (Ali Mansion) in chittagong. What makes BSRM different and distinctive from others is that the mill can only use M.S. Billets of regular shape and proper size which means it is a hundred percent billet based mill. No scrap or ingot can be rolled and hence there is no possibility of using any sub-standard raw material which in itself is a guarantee of the mills production quality.

Products of the company

Xtreme 500w bars:
High design yield strength of 500Mpa (75500psi) Requires 12% less steel in construction compared to grade 60 rebar s available in the market. The bar have superior bend ability and can be safely bent without cracking. All bar sizes are rolled to a very close tolerance (possible on a DANIELI computerized mill) so that customers get more meters of steel per ton more value for money without having to sacrifice structural integrity. Xtreme bars are safely weld able under field conditions. Another 0.5% to 1.5% of steels is saved by avoiding large splices.

MS Angles
Angles of other thickness and varying properties can be made to customers needs. Some of the thickness given in the tables are obtained by raising the rolls. In such cases flanges will be slightly longer and the back of the those will be slightly rounded.

TORSTEEL:
The introduction of high yield strength deformed bar as reinforcing steel has revolutionized the world of reinforced concrete design Rebbed Torsteel bar or in short TORSTEEL a high strength cold twisted deformed bar originally developed by TORSTEG STEEL CORPORATION of Luxembourg, Germany is now a widely accept bar in most countries of the world BSRM was foremost in Bangladesh. Use of Torsteel bar result in 40% steel saving 30% saving steel cost compared to mild steel round bars of 36000 psi (250 N/mm2) yield poin.

S. ALAM COLD ROLLED STEELS LIMITES.

History & Background
The company was founded 1985 and the founder of this group Md. Safiul Alam. And headquartered at Chittagong, Bangladesh. S. Alam cold Rolled Steels Limited (SACRSL) manufactures Cold steel strips in the from of coils and sheets. The company to produce cold rolled strip coils/sheet has set up a project equipped with 6-Hi CVC reversing cold Rolling Mill with an annual capacity of 150,000 Tons. The Cold Rolled in the from of coil/sheet is the main raw material used to manufacture galvanized steel sheets (CI sheets). S. Alam steels Ltd. Established 1995 and the steels mills fully japan origin machineries. And ensure the backward linkage of the steel industries Galvanizing, Corrugated, Automobile etc. This C.R. coil producing maintained a high quality standard to meet the local demands considering price to save foreign currency. The company recorded revenues of BDT 3,737.9 million (approximately $25.7) in the fiscal year ended Sept 2009.

Products of the company

Ensure the backward linkage of the Steel Industries of Galvanizing, Corrugated, Automobile etc. This C.R. Coil producing maintained a high quality standard to meet the local demands considering price to save foreign currency.

Name of the Product : Technical Specification :

Cold Rolled Steel Strips Product range 0.1mm ~ 0.50mm Thick mm 720mm ~ 914mm width 1,20,000 M. Ton per year 182 persons BDT 1510 Million Galvanizing Automobile and other steel Industries Japan, Korea, Netherlands, Romania, Russia, India, Taiwan, China etc. 6 hi CVC Machinery of Japan origin 12-12-2000

Capacity of the Plant

ManpoTheyr : Annual Turnover : Prospect/Consumers/U : sers STheirce material of raw:

Technology Establishment

: :

S. ALAM COLD ROLLED STEELS LIMITED Ratio Analysis

Account title 2007 Comparative analysis 2008 Amount of increase or decrease 169,053,009 66,306,375 102,746,634 (3,763,392) Amount of increase percentages of decrease 12.62% 6.37% 29.00% (10.99%)

Net Turnover Cost of Goods sold

1,339,096,004 984,819,715

1,508,149,013 1,051,126,090 457,022,923 30,462,743

Gross profit 354,276,289 Administration, 34,226,135 Selling and distribution Expenses Trading profit Financial Expenses Gross Operating profit Workers Profit participation and Welfare Funds 320,050,154 197,156,847 122,893,307 6,144,665

426,560,180 257,877,034 168,683,146 8,434,157

106,510,026 60,720,187 45,789,839 2,289,492

33.27% 30.79% 37.25% 37.25%

Profit before amortisation of intangible assets

116,748,642

160,248,989

43,500,347

37.25%

Amortisatiuon of 149,020 preliminary expenses Amortisation of 2,113,833 Share Issue expenses Deferred Profit after income tax Unappropriated profit, brought forward Profit available for Appropriation Final Dividend proposed Unappropriated Profit carried forward 42,916,841 71,568,948 29,700,387

149,020

0%

2,113,833

0%

36,027,362 121,958,774 21,252,135

6,889,479 50,389,826 (8,448,252)

0.16% 70.40% (28.44%)

101,269,335

143,210,909

41,941,574

41.41%

82,017,200 21,252,135

90,686,160 52,524,749

10,668,960 31,524,749

13.33% 147.15%

2.38% 0% 0.04% 0.87% 1.46% 6.06% 2.06% 1.67% 0.43%

Common Size Analysis 2.95% 0% 0.03% 0.66% 0.39% 2.63% 1.67% 0.96%

2007 27.34% 20.10% 7.23% 0.69% 6.53% 4.02% 2.50% 0.12%

2008 27.78% 1.84% 8.41% 0.56% 7.85% 4.75% 3.107 0.15%

Bangladesh steel re-rolling Mills Ltd BALANCE SHEET

Comparative analysis Account title Tangible fixed assets Preliminary Expenses Share issue expenses Current Assets: Stocks Book Debts 2007 143,711,449 298,040 6,341,498 246,526,662 879,296,451 2008 1,381,374,994 149,020 4,227,665 2,935,437,852 882,989,812 162,545,451 Amount of increase or decrease (55,739,125) (149,020) (2,113,822) 2,688,911,190 3,693,361 68,139,508 Amount of increase percentages of decrease (38.88%) (50%) (33.33%) 1.09% 0.42% 72.18%

Advance Deposits and 94,405,943 prepayments Cash & bank balance 21,451,930

65,842,362 681,874,676

44,390,432 (2,792,168)

206.93% 0.40%

Current liabilities and 684,666,844 provisions: Creditors and accruals Advance against sales Short term bank loans 37,778,901
2,343,141,027

75,504,975 2,816,010,992

(19,273,926) 472,869,965

(51.01% 20.18%

Provision for workers profit participation fund

6,144,665

8,434,157

2,289,492

37.26%

Unclaimed Dividend 3,973,500 Current portion of term loan Lease finance due within one year Proposed dividend Net. Current assets Total assets less current liabilities Deferred Net assets Source of funds Share capital Retained earnings Shareholder funds Term loan Loan from Total funds 533,448,000 21,252,135 554,700,135 788,289,421 216,640,519 1,559,630,075 107,248,800 11,829,052

27,558,842 142,398,600 0

23,585,342 35,149,800 0

593.75% 32.77% 0%

80,017,200 185,880,997 1,629,634,654 700,004,579 1,559,630,075

90,686,160 261,347,075 1,647,098,754 106,031,941 1,541,066,813

10,668,960 75,466,078 17,464,100 (593,972,638) (18,563,262)

13.33% 40.60% 1.07% (84.85%) (1.19%)

533,448,000 52,524,749 585,972,749 800,100,094 154,993,970 1,541,066,813

0 31,272,614 31,272,614 11,810,673 (61,646,549) (18,563,262)

0% 147.15% 5.64% 1.50% (28.46%) (1.19%)

Common Size Analysis 2007 2008 92.14% .019% .407% 15.81% 56.38% 6.05% 1.37% 43.90% 89.64% 9.67% .274% 190.48% 57.29% 10.55% 4.27% 44.24%

Trend Analysis 2007 2008 100% 100% 100% 100% 100% 100% 100% 100% 96.12% 50% 50% 1.190% 100.42% 172.18% 306.93% 99.59%

(2.42%) 150.24%

1.20% 182.37%

100% 100%

48.98% 120.18%

0.39%

0.54%

100%

137.25%

0.25% 6.88% 0.75% 5.13% 116.44% 104.48% 44.88% 100% 34.20% 1.36% 35.57% 50.54% 13.89% 100%

1.79% 9.24% 0% 5.88% 16.96% 106.88% 6.88% 100% 34.62% 3.40% 38.02% 549.18% 10.06% 100%

100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

693.75% 132.77% 0% 113.33% 140.60% 101.07% 15.14% 98.81% 100% 247.15% 105.63% 101.50% 71.54% 98.81%

Market leader: BSRM is the market leader in the steel Market of Bangladesh. They occupy 12% of the total ste SWOT consistently in BSRM Great competitive skills: It has been workingANALYSIS steel production sector. So it has achieved great co Reliability: Be the preferred business partner of the customer and supplies by offering quality products proving Strong employee bonding and belongingness: BSRM employee are one of the major assets of the company. T Strong Marketing line up: BSRM has developed a sound and effective marketing policy to share knowledge ab Strong products Distributions lineup: BSRM has appointed more the 300 dealers all over the country so that c Modern Equipment and Technology: The BSRM Xtreme 500w project has been conceptualized by the Germ

Opportunities UFIL s high level of capitalisation places it in a strong position to acquire assets Companies finding trading conditions particularly difficult at present may be available at low cost UFIL also has adequate capital to expand throughout the country, in which it has purchased a stake to continue its local expansion despite challenging economic times. UFIL s generally strong position presents the opportunity to outperform competitors during the economic downturn and to build a reputation for being one of the safer Financing Company for depositors, helping to increase resources for lending. Negative press coverage of competitors such as LANKA BANGLA may encourage customers to choose UFIL instead. Threats Trust in financing company s has decreased due to financial losses suffered by investors, who may be more inclined to invest elsewhere. Financial losses affecting financing companies and investors on a global scale have resulted in less credit being available to customers. In Bangladesh this is coupled with increases in living costs resulting in less money being saved. The falling property market has created a rise in numbers of homeowners with negative equity. If a property is worth less than was borrowed to finance its purchase, there is little likelihood that the financing company s will recoup all its losses if owners default. Claims have been made that UFIL has understated losses resulting from DSE share markets, and this could undermine confidence in the company.

Bangladesh finance and investment company limited s SWOT analysis :

Strengths BFICL has a widespread local presence, allowing it to spread risk and enjoy economies of scale. The BFICL brand is well-established historically and continually promoted. BFICL is particularly associated with innovation. Main sectors in which the company has targeted to lease and invest are transport, electric and electronic goods (including computers), leather, textile, printing, marine vehicles and equipment, steel and engineering, fishing boats and trawlers, medical equipment and small scale industries. The opening of several new flagship branches along with a refurbishment programme can be seen as an attempt to refocus on customer demands for a strong presence on the high street (see threats). Weaknesses Services provided in Zimbabwe to individuals connected with Zanu PF have generated controversy and raised questions about BFICL s ethical position: investors are increasingly concerned about ethics. Large bonuses for Directors have attracted unwanted attention from commentators, and it has been speculated that the bank s reluctance to take financing from the UK government is because that would end its autonomy with regard to bonuses. Plans to expand in Asia were limited when BFICL s were outbid for ABN Amro in 2006, and alternative expansion plans have had to be adopted. The bank does not plan to pay dividends on its shares until the second half of 2009, making them less attractive to investors.

Opportunities BFICL was keen to acquire some of Lehman s assets prior to its collapse: after the collapse, they have been able to negotiate a better deal with liquidators which also allowed them to be very selective in which parts of the business they acquired The bank s strategy is to offer a full portfolio of services worldwide, providing a wide range of cross-selling opportunities. Asia is still considered an opportunity for BFICL s expansion, and operations are being set up in a number of locations. Welfare provision has decreased in many countries because of the cost to governments, and BFICL sees self-provision as an increasing trend that it can utilise. The court recently found that BFICL banking charges, which had been challenged legally, were enforceable, thus repayment is not necessary and charges can continue to be enforced. Threats If the economic downturn is prolonged, acquisition of Lehman s assets could prove to be a mistake. BFICL has been accused of moving loss-making investments associated with the sub-prime market from its accounts to those of other investors, and there is a risk it may be sued. While offering a wide range of services provides opportunities, there is also the threat that customers may prefer to go to suppliers who present a more specialised approach. BFICL acquired a reputation for closing branches because of a high incidence of this in 2000, and competitors have been able to position themselves as more consumer-friendly through a strategy of keeping branches open. The Asia expansion is seen as risky given that BFICL are in a less strong position than banking industry leaders regarding capitalisation, and this may detract investors.

CONCLUSION