Professional Documents
Culture Documents
&
Patronized by :
Supervisor:
Mr. Mohammad Ziaul Hoque
Assistant Professor
Department of Finance & Banking
University of Chittagong
This report deals with the important issue of the
Statement of the Problem
Bangladesh Steel Re-Rolling Mills Limited (BSRM).
In this report, I looked into whether the existing
financial structure of BSRM ltd. has a great impact
over the overall performance of the company.
Here, we evaluated existing financial structure of
BSRM ltd with-
Common size statement and
Ratio analysis
1. Principal
2. Specific
Principal Objectives:
To evaluate financial structure of BSRM
Specific objectives
To accomplish this principal objective following specific objectives have
been covered:
To examine the financing policies & programs of BSRM.
To examine the impact of financial structure on profitability of BSRM.
To evaluate the techniques and mode of financing for both long term
capital & working capital.
To identify the determinants of capital structure.
To identify the problems associated with the capital structure &
current liability of BSRM.
To suggest some product policy measures of making financial
structure of BSRM more effective.
Methodology of the study
Analysis of data:
Financial techniques, Ratio analysis, Common size analysis,
Statistical techniques test of significance .
Summary of the findings
Introduction
Optimality in financial structure is required to enjoy profitability, growth
and above all, long term existence. Cost of capital and value of the firm
are two important basis of optimality.
Common-size Statement
Operating years
Capital &
liabilities 2009 2010 2011
Ratio Analysis
Operating year
Ratios 2009 2010 2011 Average
Debt to equity 85% 56% 29% 43%
Debt
capitalization 7817% 473% 627% 550%
Debt ratio 16% 10% 4% 10%
CL to Total
asset 83% 73% 83% 79%
Total debt to
total assets 99% 83% 87% 89%
DFL 2.36 1.53 1.42 1.77
Time interest
Financing Financial Structure on BSRM