1. TERM PAPER PRESENTATION
ON
FINANCIAL STATEMENT ANALYSIS OF BSRM STEEL, RSRM
STEEL & PHP FLOAT GLASS INDUSTRIES LTD
Md. Kowshick Ahmed
ID: 16251009
Marketing -16
Section: A
2. EXECUTIVE SUMMARY
The main focus of this report is on the Financial Statement Analysis of BSRM steels ltd, RSRM steels ltd and PHP
float glass industries ltd. In order to focus on the financial performance of BSRM, RSRM and PHP float glass
Limited, the study focuses on the financial statement and ratio analysis. The study has been conducted mainly
based on secondary data which I collect from many sources like internet, journal, and company. Moreover, on
the study describe the basic experience and objectives of the study. In this report I try to show here the
companies income statement and balance sheet. I give the 3 companies Total Revenue, total expense, profit
before income tax, profit after tax and earning per share of the three companies. I also show their current
assets current liabilities, total equities and other data that are related to this topic. I also analysis their
performance ratio and lastly show comparative analysis of BSRM steels, RSRM steels and PHP float glass
industries.
3. Objectives of the Study
Specific:
• The main purpose of this term paper is to find out the financial performance of BSRM
steels,RSRM steels and PHP float glass industries ltd.
Broader:
• The areas on which I will give emphasis are:
• To find out the financial strength of BSRM, RSRM and PHP.
• To find out the financial weakness of BSRM, RSRM and PHP.
• To evaluate financial condition& performance of BSRM, RSRM and PHP.
• Recommends solution related to their financial performance.
4. Methodology
Research Design:
For this term paper I randomly selected 3 companies. The selected companies are Bangladesh Steel Re-Rolling Mills-
BSRM, Ratanpur Steel Re-Rolling Mills Limited-RSRM and PHP float glass industries ltd. It is descriptive in nature
mainly based on secondary data. The study focuses on financial statement analysis using of ratio and measurement
of performance of my selected companies.
5. Methodology
The major portions of data source used in this report are from secondary sources. Finally, the
collected data are classified, tabulated, analyzed, interpreted and presented in the form of research
report thereafter.
• Annual Report of BSRM, RSRM and PHP float glass industries ltd.
• Websites
• Statistical data
• Prospectus
6. Findings and analysis
Total Revenue Total Revenue Total Revenue
BSRM RSRM PHP
2015 32,316,100,562 5,503,171,247 880,528,690
2014 38,535,936,754 4,766,995,506 775,481,990
0
5,000,000,000
10,000,000,000
15,000,000,000
20,000,000,000
25,000,000,000
30,000,000,000
35,000,000,000
40,000,000,000
45,000,000,000
Total Revenue
2015 2014
BSRM:38,535 million-2014
32,316 million-2015
RSRM:4766 million-2014
5503 million-2015
PHP:775 million-2014
880 million-2015
7. Findings and analysis
BSRM Profit after tax for the year
RSRM Profit after tax for the year
PHP Profit after tax for the year
2015 2014
BSRM Profit after tax for the year 2,081,877,163 1,086,207,806
RSRM Profit after tax for the year 272,583,081 154,957,856
PHP Profit after tax for the year 754,698,321 120,779,206
2,081,877,163
1,086,207,806
272,583,081
154,957,856
754,698,321
120,779,206
PROFIT AFTER TAX
BSRM Profit after tax for the year RSRM Profit after tax for the year PHP Profit after tax for the year
BSRM:2080 million-2015
1086 mi-2014
RSRM:272 mi-2015
154 mi-2014
PHP:120 mi-2014
754 mi-2015
8. Findings and analysis
0 5,000,000,000 10,000,000,000 15,000,000,000 20,000,000,000 25,000,000,000 30,000,000,000
Total
Assets
Total
Assets
Total
Assets
BSRMRSRMPHP
BSRM RSRM PHP
Total Assets Total Assets Total Assets
2014 22,766,018,821 4,749,536,683 2,450,077,393
2015 26,940,052,392 4,803,178,731 4,426,597,454
Total Assets
2014 2015
BSRM:26,940 mi-2015
RSRM:4800 mi-2015
PHP: 4426 mi-2015
9. Findings and analysis
2014 2015
BSRM Total Equity and Liabilities 22,766,018,822 26,940,052,392
RSRM Total Equity and Liabilities 4749536683 4803178731
PHP Total Equity and Liabilities 2,450,077,393 4,426,597,454
0
5,000,000,000
10,000,000,000
15,000,000,000
20,000,000,000
25,000,000,000
30,000,000,000
Total equity and liabilities
BSRM Total Equity and Liabilities RSRM Total Equity and Liabilities PHP Total Equity and Liabilities
10. Ratio Analysis (RSRM steels)
• Current Ratio:
Current ratio is an assessment of a firm’s short-term liquidity. It is computed by dividing current assets
by current liabilities.
NOTE: Here the assets of 31 December 2015,are 1.67.so we can say that the situation of assets and
liabilities of 31 December 2015 is better than assets and liabilities 31 dec 2014. we can see that the
company has 1.67 in current assets to cover each 1.00 in current liabilities.
2015 Times 2014 Times
=
𝟐,𝟖𝟎𝟏,𝟓𝟕𝟓,𝟓𝟖𝟑
𝟏,𝟔𝟕𝟎,𝟔𝟏𝟓,𝟔𝟔𝟎
1.67
=
𝟐,𝟔𝟖𝟒,𝟓𝟕𝟒,𝟎𝟕𝟏
𝟐,𝟕𝟖𝟔,𝟎𝟔𝟔,𝟔𝟓𝟒
0.96
Current ratio = Current assets/Current liabilities
11. Ratio Analysis (RSRM steels)
GROSS PROFIT RATIO:
It indicates the total margin available to cover other expenses beyond cost of goods sold and still
yield a profit.
Gross profit ratio =
𝑮𝒓𝒐𝒔𝒔 𝒑𝒓𝒐𝒇𝒊𝒕
𝑵𝒆𝒕 𝒔𝒂𝒍𝒆𝒔
× 𝟏𝟎𝟎
NOTE:
This ratio indicates the efficiency of operation of how products are priced. In 2015 gross margin ratio
is increased than previous years. It is good for the company.
2015 Percenta
ge
2014 Percenta
ge
==
𝟓𝟒𝟗,𝟒𝟒𝟐,𝟗𝟔𝟗
𝟓,𝟓𝟎𝟑,𝟏𝟕𝟏,𝟐𝟒𝟕
× 100
9.98
=
465,001,928
4,766,995,506
× 100 9.75
12. Ratio Analysis (BSRM steels)
• Current Ratio:
Note: A ratio under 1 indicates that a company's liabilities are greater than its assets and
suggests that the company in question would be unable to pay off its obligations if they came
due at that point.
2015 Times 2014 Times
=
𝟖,𝟕𝟕𝟒,𝟒𝟓𝟏,𝟒𝟗𝟐
𝟏𝟏,𝟗𝟗𝟗,𝟐𝟐𝟗,𝟏𝟐𝟖
0.73 =
𝟏𝟎,𝟏𝟔𝟑,𝟕𝟑𝟖,𝟔𝟓𝟕
𝟗,𝟑𝟐𝟗,𝟕𝟓𝟎,𝟒𝟔𝟎
1.08
13. Ratio Analysis (BSRM steels)
GROSS PROFIT RATIO:
Note :This ratio indicates the efficiency of operation of organization. In 2015
gross margin ratio is increased than previous years. It is good for the company.
2015 Percentage 2014 Percentage
=
𝟒𝟖𝟏𝟒𝟗𝟓𝟏𝟒𝟓𝟏
𝟑𝟑𝟒𝟗𝟑𝟐𝟐𝟖𝟔𝟓𝟏
× 100
14.37 =
3,488,014,384
38,571,105,303
× 100 9.04
14. Ratio Analysis PHP float glass
Current Ratio:
Note :It indicates that a company's liabilities are greater than its assets ,it is not good for the
company.
2015 Times 2014 Times
=
590393508
𝟖𝟒𝟑𝟖𝟐𝟎𝟎𝟕𝟕
0.69 =
𝟖𝟏𝟖𝟑𝟖𝟗𝟔𝟑𝟏
𝟏𝟖𝟔𝟓𝟗𝟐𝟖𝟑𝟖𝟑
0.43
15. Ratio Analysis PHP float glass
• GROSS PROFIT RATIO
• Note: the higher ratio is considered better .
2015 Percentage 2014 Percentage
=
𝟐𝟑𝟑𝟕𝟐𝟒𝟓𝟕𝟔
𝟖𝟖𝟎𝟓𝟐𝟖𝟔𝟗𝟎
× 100
26.50
=
𝟐𝟐𝟕𝟒𝟒𝟖𝟓𝟏𝟑
𝟕𝟕𝟓𝟒𝟖𝟏𝟗𝟗𝟎
× 𝟏𝟎𝟎
29.32
16. Recommendation and conclusion
❶The BSRM steels Company should give more focus on general financial strength. The company
should pay more attention towards the gross profit ratio and net profit ratio because both of
these are showing an upward and downward trend.
❷The RSRM steels Company they should utilize maximum amount of its production capacity
which leads to increase annual turnover as well as profit margin. They should have short-term
as well as long-term solvency for financial strength.
❸finally the PHP float glass industries their gross profit and net profit is better than other 2
companies.
