An Assignment Report on

Financial Performance Analysis

BSRM Steel Limited, S. Alam Cold Rolled Steels Limited, GPH Ispat Limited, AKS Steel
Limited

Course Title: Financial Management

Course Code: FIN - 5134
Section: 02

Submitted To
Mr. Md. Khairul Alam
Senior Lecture (Finance)
School of Business Study,
Southeast University

Submitted By

Name ID No
S. M. Fazlay Rabby 2020010004041
Shawkatul Alam Rahat 2020010004126
Nazifa Yasmin 2020010004004
Anisur Rahman 2020010004058

Date of Submission: 31st May, 2020

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 Letter of Transmittal

Date – 31st May, 2020

To,
Mr. Md. Khairul Alam
Senior Lecture (Finance)
School of Business Studies
Southeast University

Subject: To submit the Assignment report.

Dear Sir,

This is to inform you that, we have completed the assignment report on “Financial
Performance Analysis of BSRM Steel Limited, S. Alam Cold Rolled Steels Limited, GPH
Ispat Limited, AKS Steel Limited”. We are tried our best for providing financial
performance analysis of BSRM steel limited, S. Alam Cold Rolled Steels Limited, GPH
Ispat Limited, AKS Steel Limited.

While preparing this assignment report, we are followed the instruction of yours. We will
be glad to clarify any discrepancy that may arise.

Thank you for your co-operation.

Sincerely,

Name – S. M. Fazlay Rabby

ID No – 2020010004041
Name – Shawkatul Alam Rahat
ID No – 2020010004126
Name – Nazifa Yasmin
ID No – 2020010004004
Name – Anisur Rahman
ID No – 2020010004058

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 Acknowledgement

First, we would like to thank the almighty Allah for giving the strength and the aptitude to
complete this assignment within due time. We are deeply indebted to our course teacher Mr.
Khairul Alam, Senior Lecture (Finance) School of Business Studies Southeast University for
assigning such an important topic “Financial Performance Analysis of BSRM Steel Limited,
S. Alam Cold Rolled Steels Limited, GPH Ispat Limited, AKS Steel Limited”. We are also
express the depth of our appreciation to our honorable course teacher for his suggestions and
guidelines, which helped out in completing this report.

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 Executive Summary

This report is prepared as a requirement of the Financial Management course of MBA program of
Southeast University which is facilitated by Mr. Khairul Alam, Senior Lecture (Finance), School
of Business Studies, Southeast University. This report gives a clear idea of the financial
performance in the year of 2015-2019. The prime focus of this study is to highlight and analyses
the core financial elements and ratios that has great effect on financial performance. Here we tried
our best to focus the overall scenario of financial performance of BSRM steel limited, S. Alam
Cold Rolled Steels Limited, GPH Ispat Limited, AKS Steel Limited. The main source of data is
annual reports 2015-2019 issued by the BSRM steel limited, S. Alam Cold Rolled Steels Limited,
GPH Ispat Limited, AKS Steel Limited. Other sources are website different sections. All this
information was basically secondary data. This study is divided into several sections. In the first
section, it is the introductory part, namely Introduction, Methodology of the Study, Limitations of
the Study. In the second section, is contains an Overview of the Organization, which includes
history of the BSRM steel limited, S. Alam Cold Rolled Steels Limited, GPH Ispat Limited, AKS
Steel Limited its management, functions, vision, mission etc. Section third is financial
performance analysis, which includes the ratio analysis of the BSRM steel limited, S. Alam Cold
Rolled Steels Limited, GPH Ispat Limited, AKS Steel Limited and the findings. Section four is
conclusion part, which include the recommendations and collusions.

Common Size Financial Statement discloses the internal structure of the firm. It indicates the
existing relationship between sales and each income statement account. However, I’ve done
millions of monetary calculations, determined their monetary reports from our operating expertise
we conjointly gathered data concerning their body method of managing completely different
problems. Once making ready the full report, we had some findings relating to the monetary
Performance Analysis of BSRM steel limited, S. Alam Cold Rolled Steels Limited, GPH Ispat
Limited, AKS Steel Limited restricted. As associate mortal we will have created several mistakes
in those findings, however no matter we felt from our purpose of read, we solely seen those.
Supported those findings, we suggested some points which can facilitate the bank to get rid of their
several shortcomings.
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 Table of Contents

SL No Topic Name Page No

01 Introduction 6-7

02 Objective of the Study 8

03 Methodology of the Study 8

04 Limitation of the Study 9

05 Historical Background of the Company 10-16

06 Ratio Analysis and Theoretical Aspect 17-26

07 Time Series and Comparative Analysis 27-28

08 Findings of the Study 29

09 Recommendation of the Study 30

10 Conclusion 31-32

11 Reference 33

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Introduction –
As we are student of Masters of Business Administration (MBA), it was required to submit an
assignment report to enrich our knowledge level and to gain some practical experiences. We are
proud to state that we have got the opportunity to do our assignment report of the course financial
management. All of these helped us a lot to learn the new concepts, to gain practical experiences
and to know the corporate cultures. The basic purpose of this experience is to expose the student
to the real business situation and accustom his or her with the practice of modern business world.
Financial performance analysis is the process of identifying the financial strengths and wellness
of the business by properly establishing the relationship between the items of balance sheet and
profit and loss account. It also helps in short term and long term forecasting and growth can be
identified with the help of financial performance analysis. It is the structural and logical way to
represent overall financial performance of financial institution. The concept of financial
performance analysis of the business based on the financial ratio is applied by different researcher
and the following is the summary of past studies and them results about the performance of the
business. It is used by a variety of stakeholders, such as credit and equity investors, the
government, the public, and decision-makers within the organization.

BSRM Steel Limited, after hearing this name people starts to visualize an organization which has
several characteristics. One of them is it sales of Steel products, besides this it has a very attractive
working environment and it is of the gigantic steel manufacturer in Bangladesh. This is the largest
steel product producer and manufacturer in Bangladesh after its close competitor. The BSRM
Group of Companies traces its origins and inception to a set of 4 small manual rolling mills in
Nasirabad, Chittagong. The mill produced reinforcing bars and structural sections. Bangladesh
Steel Re-rolling Mills (BSRM) is one of the largest groups of companies operating in Bangladesh.

S. Alam cold rolled steels limited .established on December 12, 2000. It produces high quality C.R
Coils, which is known as Cold Rolled Coil in its detailed form. Raw materials of these coils are
imported from well-developed countries such as Japan, Korea, Netherlands, Romania, Russia,
India, Taiwan, China. Annualturnover of this production is around BDT 4.00 Billion. At present,
there are approximately two hundred and twenty workers are working in this production to produce
1,20,000 M. Ton cold rolled steel strips per year.

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The introduction of GPH ispat Ltd. has all the potentials to take Bangladesh quite a few steps
forward to a stronger & brighter tomorrow. GPH believes in all forms of sustainability from
social, natural, financial, technological, and regulatory. This has been working since its inception
for the greater interest of human being and planet of this universe. There are two types of product
are made by GPH ispat Ltd they are MS Rod and MS Billet. There is 5000 employee worked at
here. Our Values are: we are committed to provide enjoyable work environment for our employees,
our most important resources. We will continually promote teamwork, quality improvement and
excellence in all the places of business for establishing good governance. We will provide products
and services of highest quality and value by respond to our customers with promptness, sensitivity,
respect & always with integrity.

AKS is the single largest steel facility in Bangladesh, capable of producing 1.4 MTPA since 2009.
The plant is equipped with state-of-the art TMT technology to cater the growing demand of high
quality construction steel in the country. In the process of complete integration, Abul Khair Steel
installed Country’s first & only Electric Arc Furnace (EAF) in 2015 at Shitalpur, Sitakund,
Chittagong. It enabled 100% refinement of steel, casting them into billets and rolling the billets to
high quality finished products- all under a single facility. With the high quality input and
unmatched technological superiority, AKS is poised to cater for the growing demand of high
quality steel in the country.

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Objective of the Study -

The main objective of the report will be to present the financial performance analysis of BSRM
steel limited, S. Alam Cold Rolled Steels Limited, GPH Ispat Limited, AKS Steel Limited with
fulfilling the requirement of Financial Management. However, the objective behind this study is
something broader. Objectives of the report are summarized in the following manner-

Board objective-
 To study the financial performance analysis of BSRM steel limited, S. Alam Cold Rolled
Steels Limited, GPH Ispat Limited, AKS Steel Limited.
Specific Objectives-
 To analyze the financial performances of BSRM steel limited, S. Alam Cold Rolled Steels
Limited, GPH Ispat Limited, AKS Steel Limited over the year 2015-2019.
 To calculate several financial ratio and thus analyze the trued of financial performance.
 To discussed the financial ratios measurement and analysis.
 To provide some suggestions based on the findings of the study.
Methodology of the Study –

 Choice of the Year-

We are selected the last five years (2015-2019) for my analysis. We are collected data and

financial papers of these five years to prepare this report.

 Secondary Source are-

 Annual report of BSRM steel limited (2015-2019)
 Annual report of S. Alam Cold Rolled Steels Limited (2015-2019)
 Annual report of GPH Ispat Limited (2015-2019)
 Annual report of AKS Steel Limited (2015-2019)
 Brochures, Prospectus of BSRM steel limited, S. Alam Cold Rolled Steels Limited, GPH
Ispat Limited, AKS Steel Limited.
 Relevant file study as provided by the officers concerned
 Different circulars issued by the head office of BSRM steel limited, S. Alam Cold Rolled
Steels Limited, GPH Ispat Limited, AKS Steel Limited.
 Different Financing and Accounting related text books, Newspapers and Website
Information.

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 Limitation of the Study –

 Lack of Knowledge- To make a report various aspects and experiences are needed, but
my main constraint of the study is Lack of experience in internship report writing.

 Confidentiality- The bank policy of not disclosing some data and information for obvious
reasons, which would have been very much useful for the report.

 Random Changing System- As the bank is continuously changing its system is also
changing time to time. It will be difficult to ascertain the true performance of the bank
each time.

 Extreme Workload- Few officers sometimes felt disturbed, as they were busy with their
job. Sometimes they didn’t want to supervise me out of their official work. Sometimes it
was difficult to collect data important files are kept in volt for safety.

 Lack of Time- Time constraint was one of the major drawbacks in the report. The
duration of the report was only three months which was very short. So, I could not go in
depth analysis.

 Others Limitations- There were non-availability of some preceding and latest data.

There is a lack of previous experience in this concern, and many practical matters have been
written from my own observations that may vary from person to person.

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Historical Background of the Company
Background of the BSRM Steel Limited –

Bangladesh Steel Re-Rolling Mills (BSRM) is one of the largest groups of companies operating
in Bangladesh. At BSRM, the consumer is at the center of business. Here people operate in a high
speed environment and under tremendous pressure, so they need the strength of mind to make
quick decisions, often basing them on limited information. They also need to be open to innovative
solutions that can improve their processes and balance supply and demand while minimizing
working capital.

Background of the Group -

The BSRM group was established in 1950 in steel business under the splendid initiates of five
brothers (African Origin) of a single family. Later on, the business concerns under of this group
were run by the families of late Mr. Akber Ali. Since its inception, the Group is involved only in
the steel sector. The family has been successfully running the group for the last 55 years and
regarded as the best managed steel units in the country. The group is also the largest contributor
to the national exchequer under the steel sector and also having largest set up in the country
considering its integration in all areas of steel industry.

Vision –
“BSRM focus on being the most reliable steel company in the overall steel industry of
Bangladesh, so also amongst the Asian countries”.

Mission –
As per company’s statement the core mission is “to make life of people secured and safe by
providing quality products at a cheaper price and to be a partner in the nation’s building
activities.
Hence, the mission statement describes what BSRM Group wants to do, its business, objectives
and its approach to reach those objectives.

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Sustainable Growth -
Consistent improvement in the quality of products and services, efficiency of processes and
profitability of business; continuously anticipating and responding to the changing business and
environmental needs using innovation; sharing knowledge and experience within the organization.

Milestone and Achievement -

Milestone - 1987

The four old manual mills were scrapped and an automatic billet-based rolling mill was installed
with continuous up gradation. The two highway bridges over the rivers Meghna and Gumti, the
Chittagong Airport, the KAFCO Fertilizer factory, most of the country’s large prestigious projects
and many high-rise buildings in Bangladesh were then built with BSRM bars.

Achievement - 1996

A captive billet-making plant was commissioned, under the name of Meghna Engineering Works.
Cost-saving Technology – 2006. The first and only ribbed wire cold-rolling plant in the country
started operations using European technology to make 500 Mpa yield strength wire reinforcements
in sizes 4.5mm, 5.7mm and 7.1mm, significantly reducing construction costs.

BSRM’s Prominent Products –

Xtreme B500DWR - SRM, the most preferred reinforcing steel of all major national landmark
projects in Bangladesh, is committed to building a safer nation since 1952. As a footstep of
continuous research and innovation, we bring-forth another product XTREME B500DWR.

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Xtreme - Xtreme is a high strength reinforcing steel for general purpose construction of low and
medium-rise commercial and residential buildings and bridges. It is the steel of choice among
home builders. Larger diameters, 25mm, 32mm and 40mm are also available for use in the
construction of very tall buildings [25 story and beyond], Bridges and flyovers.

BSRM created history by becoming the only steel producer, in the Indian sub-continent; to roll
50mm rebar. The 50mm Bar was used in the pile foundation of the Padma Bridge.

BSRM’s Xtreme 500W conforms to BS 4449 Grade 500 and BDS ISO 6935-2 Grade 500W. It is
the best selling reinforcing product of BSRM since 2008.

Maxima – Steel is a ubiquitous and versatile construction material. It is the backbone of a nation’s
infrastructure and used in the tens of millions of tons to build cities, bridges, and factories. It is
either used as a structural material or as a composite in reinforced concrete (RC).

Xtrong - Xtrong is a high strength structural steel conforming to ASTM 572 Grade 50 and ISO
630 Grade 345 Channels and Angles section rolled out of this high strength steel provides an
economical alternative to steel fabricated structures compared to traditional ASTM A-36 steel.
Structures made out of Xtrong or Grade 50 steel requires 18% to 25 % less steel compared to Grade
36 steel.

Centura - Corrosion induced failures cause severe distress to concrete structures is most common
in any chemically aggressive environments. Repair and rehabilitation of the affected structures not
only cost the exchequer with direct and indirect costs but also cause lot of inconvenience to the
public.

Background of S. Alam Cold Rolled Steels Limited -

Alam group is a Bangladeshi industrial group, which is formed by the collaboration of many small
firms in order to achieve a common goal. It is a group of industries merged together to take the
development of the nation to a new height. This group was established in 1985 and started its
business under the name of S. Alam and company. In 1988, the group started transport business
with name S. Alam luxury chair coach services limited. Subsequently S. Alam steels limited was

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established in 1995 with all machinery imported from Japan, first of its own kind in the nation.
Production capacity of this plant is 200 m. Ton in three industrial units. Recently in 2010 a sugar
refinery of high capacity was implemented and initiated its business on the name of Global trading
corporation limited. For the last 27 years, S. Alam Group has dedicated itself for the company,
community as well as the country by providing them its services and high quality products. It
produces C.I Sheets, Cement, Vegetable oil, C.R Coil, Soya Seed extraction, Public Transport,
Gas Refuelling Station, P.P Woven Bags, Shrimp Hatchery, Refined sugar, Agro farms, Natural
gas, heavy oil, furnace and many other valuable products. It plays an important role in the
economic development of Bangladesh. S. Alam group targets large power projects for specialized
investment and independently taking part in economic structural development. It has dominated
every field it works that is clear from the fact that the annual turnover being BDT.140.00 Billion
and above. The S. Alam group also invests in leasing, stock broker houses, banking and merchant
banking business. The industries which come under this group includes Food & Allied
Products, Steel, Banking, Consumer products, Sugar, Cement, Power, Energy, Transportation,
Shipping. This company sets new target for it and always makes effort to achieve it shortly and
satisfactorily.

Product and Service –

Ensure the backward linkage of the Steel Industries of Galvanizing, Corrugated, and 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: Cold Rolled Steel Strips

Technical Specification: Product range

0.1mm ~ 0.50mm Thick mm

720mm ~ 914mm width

Capacity of the Plant: 1,20,000 M. Ton per year

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Background of the GPH Ispat-

In the beginning, God created man” and after thousand years of intelligence, precision, hard work
and innovation, man created steel – one of the greatest inventions of all time. This super strong,
carbonized and alloyed form of iron is an element without which modern life is literally
unimaginable. From skyscrapers and planes to syringes and forks, steel is an essential part of our
everyday life. GPH Ispat Ltd. One of the leaders of Bangladesh in manufacturing steel promises a
super strong future and economy with its world –class products. Not only structural bar, but GPH
Ispat Ltd. is also one of the producers of low & medium carbon and low alloy steel billets in
Bangladesh, the main ingredient of manufacturing graded steel bar. As GPH is ensuring the highest
quality products in Bangladesh as per various international and national standards, GPH steel
billets and Bars is getting exported to other countries after nourishing national demand. The
introduction of GPH Ispat Ltd. has all the potentials to take Bangladesh quite a few steps forward
to a stronger, brighter tomorrow.

Mission: Our Mission is to provide customers with excellent services and products resulting in

Constant and improvement and innovation at the highest level of quality.

Vision: Our Vision is to enrich the steel sector of Bangladesh as a beacon of light for others and
to help the country in upcoming infrastructural development with upgraded Technologies.

GPH Ispat Ltd. Group is aiming to -

 Maintain leadership position in the steel industry by producing the best quality steel
products, continuously enhancing customer satisfaction, and becoming a reliable business
partner of customers and suppliers.
 Be an employer of choice, with focus on nurturing talent and developing future leaders of
the organization.
 Protect the interest of the shareholders through sustainable growth and value creation.
 Preserve the trust of all the stakeholders by adopting ethical business practices.
 Support the society through Corporate Social Responsibility initiatives.

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Product and Service in Industry -

GPH Ispat Ltd. Provide two types of products those are -

1. MS Rod
2. MS Billet

Background of AKS Steel Limited -

Abul Khair Steel is a sister concern of AKG (Abul Khair Group.). Founded in 1993, Abul Khair
Steel started its journey as a single manufacturing unit of Corrugated Galvanized Steel Sheets. The
plant was set up in Madambibirhat, Chittagong. Marketed under the brand name ' Goru
Marka&#39, the product became a popular roofing and side wall construction material for
residential use. Apart from meeting local needs, Abul Khair&#39, Goru Marka galvanized steel
sheets are being exported to 25 foreign countries and more. With time the usage of corrugated
sheets enhanced and became elaborate. In order to meet the demand of modern times, in late 2010,
Abul Khair Steel extended its production line to produce color coated steel sheets. Produced from
unique seven stage color coating process and world's best color coating technology, Cow
Brand Color Coated Steel sheets are of superior quality. The simple corrugation of galvanized steel
sheets is being replaced by complex profiles of color coated steel sheets. Today, Cow Brand Color
Coated sheets have become a common construction material for residential homes and industrial
buildings. After successful accomplishment with flat products, Abul Khair Steel invested in the
production of long products. Abul Khair Steel's re-rolling mill is the single largest steel
facility in Bangladesh, capable of producing 12 lac metric tons high quality graded hot-rolled steel
bars per annum. 100% refined imported steel billets, produced under strict metallurgical control,
and are used to produce high quality deformed steel bars. The plant is equipped with state-of-the
art TMT technology which enables improvement of chemical and mechanical properties of steel.

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Products of Abul Khair Steel -

Abul Khair Steel Products (flat) has diversified product lines. AKS has their aim to be an integrated
company in steel industry. For that they intend to extend their business by backward and forward
linkage. So the always try to extend their product line and bring new kind of products variation in
the market. Their current products are as follows.

The major items of Abul Khair steel (Flat) are as follows:

1. Goru Marka Corrugated Galvanized Steel Sheets.

2. Cow Brand Color Coated Steel Sheets.
3. AKS TMT 500W reinforcing bars.
4. Industrial Profile
5. Ridging
6. Transparent Corrugated Plastic Sheet
7. Galvanized Coil
8. Galvalume Coil
9. Color Coated Coil

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Ratio Analysis and Theoretical Aspect –

Current Ratio - The current ratio is a liquidity ratio that measures a company's ability to pay
short-term obligations or those due within one year.

Current Ratio = Current assets / Current Liabilities

Current Ratio
Company Name 2015 2016 2017 2018 2019
BSRM Steel Ltd. 1.06 1.13 1.08 1.07 1.16
S. Alam Steel Ltd. 1.31 0.75 1.5 1.89 1.19
GPH Ispat Ltd. 1.28 1.63 1.38 1.26 1.33
AKS Steel Ltd. 0.92 0.89 0.94 0.93 0.91
Table No – 01
Source of Data – Annual Report
Graphical Presentation –

CURRENT RATIO
BSRM Steel Ltd. S. Alam Steel Ltd. GPH Ispat Ltd. AKS Steel Ltd.
1.89
1.63

1.5
1.38

1.33
1.31
1.28

1.26

1.19
1.16
1.13

1.08

1.07
1.06

0.94

0.93
0.92

0.91
0.89
RESULT

0.75

2015 2016 2017 2018 2019

YEAR

Graph No – 01
Source of Information – Table No: 01
Interpretation – The current ratio standard result is 2:1. A higher current ratio indicates a greater
degree of liquidity. All the company result is less then 2, but BSRM Steel Ltd, S. Alam Steel Ltd,
GPH Ispat Ltd result is quite acceptable because the result is gather then 1. On the other hand,
AKS Steel Ltd. result is less then 1, so the result is not acceptable.

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Acid Test Ratio - The quick ratio is a financial ratio used to gauge a company's liquidity. The
quick ratio is also known as the acid test ratio.

Acid Test Ratio = (Current Assets – Inventory) / Current Liabilities

Acid / Quick Test Ratio

Company Name 2015 2016 2017 2018 2019
BSRM Steel Ltd. 0.57 0.8 0.7 0.58 0.71
S. Alam Steel Ltd 0.55 0.42 1.19 1.03 0.87
GPH Ispat Ltd. 0.405 0.81 0.77 0.96 1.03
AKS Steel Ltd. 0.91 0.9 0.93 0.87 0.85
Table No – 02
Source of Data – Annual Report
Graphical Presentation –

ACID/QUICK TEST RATIO

BSRM Steel Ltd. S. Alam Steel Ltd GPH Ispat Ltd. AKS Steel Ltd.
1.19

1.03
1.03
0.96
0.93
0.91

0.87

0.87

0.85
0.9
0.81

0.77
0.8

0.71
0.7
RESULT

0.58
0.57
0.55
0.405

0.42

2015 2016 2017 2018 2019

RESULT

Graph No – 02
Source of Information – Table No: 02
Interpretation – The acid test ratio standard result is 1:1. All of the company in 2015 to 2019 the
acid test ratio result is less than 1. On the other hand, the result is fluctuating. The result is not
acceptable. We said that the company inventory is very high or the current liabilities is very high.
Now the company should be less the current liabilities or less the decreased the inventory or
increase the current assets.

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Inventory Turnover Ratio (Times) – An activity ratio measuring the efficiency of the company's
inventory management.

Inventory Turnover Ratio (Times) = Cost of Goods Sold ÷ Average Inventory

Inventory Turnover Ratio

Company Name 2015 2016 2017 2018 2019
BSRM Steel Ltd. 4.69 3.12 4.23 3.34 4.07
S. Alam Steel Ltd 2.75 4.79 3.19 4.7 2.83
GPH Ispat Ltd. 4.87 5.04 4.95 3.32 3.54
AKS Steel Ltd. 3.42 7.85 5.71 3.43 5.87
Table No – 03
Source of Data – Annual Report
Graphical Presentation –

INVENTORY TURNOVER RATIO

BSRM Steel Ltd. S. Alam Steel Ltd GPH Ispat Ltd. AKS Steel Ltd.
7.85

5.87
5.71
5.04

4.95
4.87

4.79
4.69

4.7
4.23

4.07
RESULT

3.54
3.43
3.42

3.34

3.32
3.19
3.12

2.83
2.75

2015 2016 2017 2018 2019

RESULT

Graph No – 03
Source of Information – Table No: 03

Interpretation – The efficient inventory management means that the current level of the
production supplies, goods in process and finished goods allows the continuous production and
sales process, but at the same time minimum of financial resources is being used to finance the
inventory. All the company inventory turnover ratio is acceptable. The inventory management
team are more efficiency.

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Asset Turnover Ratio - The asset turnover ratio measures the value of a company's sales or
revenues relative to the value of its assets. The asset turnover ratio can be used as an indicator of
the efficiency with which a company is using its assets to generate revenue.

Asset Turnover = Total Sales / (Beginning Assets + Ending Assets)

Assets Turnover Ratio
Company Name 2015 2016 2017 2018 2019
BSRM Steel Ltd. 1.31 0.6 1.17 1.06 0.93
S. Alam Steel Ltd 0.87 0.93 1.21 1.19 1.33
GPH Ispat Ltd. 1.15 1.24 1.06 0.83 1.17
AKS Steel Ltd. 6.32 4.29 6.35 9.09 8.03
Table No – 04
Source of Data – Annual Report
Graphical Presentation –

ASSETS TURNOVER RATIO

BSRM Steel Ltd. S. Alam Steel Ltd GPH Ispat Ltd. AKS Steel Ltd.

9.09

8.03
6.35
6.32
RESULT

4.29

1.33
1.31

1.24

1.21

1.19

1.17
1.17
1.15

1.06

1.06
0.93

0.93
0.87

0.83
0.6

2015 2016 2017 2018 2019

YEAR

Graph No – 04
Source of Information – Table No: 04

Interpretation – The higher the asset turnover ratio, the more efficient a company. BSRM Steel
Ltd, S. Alam Steel Ltd, Aks Steel Ltd assets turnover ratio is very less this three company result is
not acceptable. On the other hand, AKS Steel Ltd assets turnover ratio is very high compare to
other company. AKS Steel Ltd result is acceptable. Now the company three assets turnover ratio
is very less, so we said that the company less efficient compare to the previous year.

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Gross profit ratio - Gross profit ratio is a profitability ratio that shows the relationship between
gross profit and total net sales revenue. It is a popular tool to evaluate the operational performance
of the business.

Gross profit ratio = (Gross profit / Net Sales) *100

Gross Profit Margin

Company Name 2015 2016 2017 2018 2019
BSRM Steel Ltd. 13.52% 18.04% 11.99% 10.10% 8.27%
S. Alam Steel Ltd 3.72% 3.50% 2.98% 5.20% 4.92%
GPH Ispat Ltd. 4.15% 7.17% 5.35% 7.16% 3.18%
AKS Steel Ltd. 6.13% 4.94% 8.97% 7.39% 8.13%
Table No – 05
Source of Data – Annual Report
Graphical Presentation –

GROSS PROFIT MARGIN

BSRM Steel Ltd. S. Alam Steel Ltd GPH Ispat Ltd. AKS Steel Ltd.
18.04%
13.52%

11.99%

10.10%
8.97%

8.27%

8.13%
RESUT

7.39%
7.17%

7.16%
6.13%

5.35%

5.20%
4.94%

4.92%
4.15%
3.72%

3.50%

3.18%
2.98%

2015 2016 2017 2018 2019

YEAR

Graph No – 05
Source of Information – Table No: 05
Interpretation – The graph show that, only BSRM Steel Ltd gross profit margin very high
compare to others company. On the other hand, all company gross profit margin result is
fluctuating. S. Alam Steel Ltd, GPH Ispat Ltd gross profit margin is very less. BSRM Steeel Ltd
and AKS Steel Ltd result is quite acceptable.

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Net Profit Ratio - The net profit percentage is the ratio of after-tax profits to net sales. It reveals
the remaining profit after all costs of production, administration, and financing have been deducted
from sales, and income taxes recognized.

Net Profit Ratio = (Net profit ÷ Net sales) * 100

Net Profit Margin

Company Name 2015 2016 2017 2018 2019
BSRM Steel Ltd. 6.44% 7.61% 4.49% 3.73% 2.83%
S. Alam Steel Ltd 5.06% 6.58% 3.83% 4.20% 3.96%
GPH Ispat Ltd. 2.92% 2.89% 5.71% 6.66% 8.06%
AKS Steel Ltd. 2.69% 2.26% 3.30% 4.22% 3.97%
Table No – 06
Source of Data – Annual Report
Graphical Presentation –

NET PROFIT MARGIN

BSRM Steel Ltd. S. Alam Steel Ltd GPH Ispat Ltd. AKS Steel Ltd.

8.06%
7.61%

6.66%
6.58%
6.44%

5.71%
5.06%

4.49%

4.22%
4.20%

3.97%
3.96%
3.83%

3.73%
RESULT

3.30%
2.92%

2.89%

2.83%
2.69%

2.26%

2015 2016 2017 2018 2019

YEAR

Graph No – 06
Source of Information – Table No: 06
Interpretation – The company net profit ratio result is fluctuating. The graph show that, BSRM
Steel Ltd 2015, 2016 and GPH Ispat Ltd 2018, 2019 net profit is very high compare to others years.
On the other hand, S. Alam Steel Ltd and AKS Steel Ltd net Profit is very less all the year. S.
Alam Steel Ltd and AKS Steel Ltd net profit margin condition is very bad.

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Earnings per share (EPS) - Measures how many dollars of net income have been earned by each
share of common stock during a certain time period. It is computed by dividing net income less
preferred dividend by the number of shares of common stock outstanding during the period.
Earnings per share (EPS) = Net Income - Preferred Dividends / Average Outstanding Common
Shares

Earnings Per Share - EPS

Company Name 2015 2016 2017 2018 2019
BSRM Steel Ltd. 6.09 3.84 4.98 4.79 4.6
S. Alam Steel Ltd 1.5 1.25 1.11 1.08 1.23
GPH Ispat Ltd. 2.34 2.06 1.83 2.03 2.24
AKS Steel Ltd. 12.96 10.89 15.34 14.16 16.68
Table No – 07
Source of Data – Annual Report
Graphical Presentation –

EARNINGS PER SHARE - EPS

BSRM Steel Ltd. S. Alam Steel Ltd GPH Ispat Ltd. AKS Steel Ltd.

16.68
15.34

14.16
12.96

10.89
RESULT

6.09

4.98

4.79

4.6
3.84
2.34

2.24
2.06

2.03
1.83
1.25

1.23
1.11

1.08
1.5

2015 2016 2017 2018 2019

YEAR

Graph No – 07
Source of Information – Table No: 07

Interpretation – AKS Steel Ltd EPS is very high compare to others company. AKS Steel Ltd
result is acceptable. But BSRM Steel Ltd, S. Alam Steel Ltd, GPH Steel Ltd EPS is very less, this
three company EPS are not acceptable. AKS Steel Ltd EPS is very good position, On the other
hand another three company EPS result is very bad position.

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Return on Asset (ROA) - is an indicator of how profitable a company is relative to its total assets.
ROA gives a manager, investor, or analyst an idea as to how efficient a company’s management
is at using its assets to generate earnings. Return on assets is displayed as a percentage.
ROA = Net Income / Total Assets
Return On Assets - ROA
Company Name 2015 2016 2017 2018 2019
BSRM Steel Ltd. 15.09 14.78 9.38 16.52 14.2
S. Alam Steel Ltd 8.04 10.06 7.15 8.5 3.2
GPH Ispat Ltd. 6.049 6.036 9.047 4.051 11.047
AKS Steel Ltd. 14.87 10.78 15.15 14.73 17.26
Table No – 08
Source of Data – Annual Report
Graphical Presentation –

RETURN ON ASSETS - ROA

BSRM Steel Ltd. S. Alam Steel Ltd GPH Ispat Ltd. AKS Steel Ltd.

17.26
16.52
15.15
15.09

14.87

14.78

14.73

14.2

11.047
10.78
10.06

9.047
9.38
RESULT

8.04

8.5
7.15
6.049

6.036

4.051

3.2

2015 2016 2017 2018 2019

YEAR

Graph No – 08
Source of Information – Table No: 08

Interpretation – The graph show that, BSRM Steel Ltd and AKS Steel Ltd ROA is very high
compare to others two company. The value indicates that, the company earned this percent on each
one of common stockholders asset investment. The S. Alam Steel Ltd and GPH Ispat Ltd result
are very less. BSRM Steel Ltd and AKS Steel Ltd result is more acceptable.

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Return on Equity (ROE) - Return on equity (ROE) is a measure of financial performance
calculated by dividing net income by shareholders equity. Because shareholders equity is equal
to a company’s assets minus its debt, ROE is considered the return on net assets.

Return on Equity= Net Income / Average Shareholders’ Equity

Return On Equity - ROE

Company Name 2015 2016 2017 2018 2019
BSRM Steel Ltd. 4.6 3.73 8.81 6.06 13.7
S. Alam Steel Ltd 1.53 2.7 3.23 4.5 2.19
GPH Ispat Ltd. 3.143 3.076 6.11 4.137 9.014
AKS Steel Ltd. 9.36 7.21 3.13 6.34 7.09
Table No – 09
Source of Data – Annual Report
Graphical Presentation –

RETURN ON EQUITY - ROE

BSRM Steel Ltd. S. Alam Steel Ltd GPH Ispat Ltd. AKS Steel Ltd.

13.7

9.014
9.36

8.81
7.21

7.09
RESULT

6.34
6.11

6.06

4.137
4.6

4.5
3.73
3.143

3.076

3.23

3.13

2.19
2.7
1.53

2015 2016 2017 2018 2019

YEAR

Graph No – 09
Source of Information – Table No: 09

Interpretation – The graph show that, all the year ROE is very less last three years BSRM Steel
Ltd ROE was some higher compare to others years and other company. This result show that, this
percent earned on each of common stock equity. S. Alam Steel Ltd, GPH Ispat Ltd and AKS Steel
Ltd result are very bad.

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Dividend Per Share - Dividend per share is the sum of declared dividends issued by a company
for every ordinary share outstanding. The figure is calculated by dividing the total dividends paid
out by a business, including interim dividends, over a period of time by the number of outstanding
ordinary shares issued.

DPS = (Total Dividends Paid Out Over a Period - Any special dividends) ÷ (Shares Outstanding)

Dividend Per Share

Company Name 2015 2016 2017 2018 2019
BSRM Steel Ltd. 3 1.5 2 2 2.5
S. Alam Steel Ltd 1.5 2.5 2.5 1.25 2
GPH Ispat Ltd. 1.67 1.92 1.74 1.52 2.08
AKS Steel Ltd. 1.5 1.5 2 2 1.5
Table No – 10
Source of Data – Annual Report
Graphical Presentation –

DIVIDEND PER SHARE

BSRM Steel Ltd. S. Alam Steel Ltd GPH Ispat Ltd. AKS Steel Ltd.
3

2.5
2.5

2.5

2.08
1.92

1.74
2

2
1.67
RESULT

1.52
1.5

1.5

1.5

1.5

1.5
1.25

2015 2016 2017 2018 2019

YEAR

Graph No – 01
Source of Information – Table No: 01

Interpretation – All the company all the year dividend per share is fluctuating. The highest
result is BSRM Steel Ltd in 2015. But we see that, all year result is more then same. So,
Dividend per share is more then same all the company.

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 Time Series and Comparative Analysis –

Ratio Company Name 2015 2016 2017 2018 2019 Average Time Series Comparative Overall
BSRM Steel Ltd. 1.06 1.13 1.08 1.07 1.16 1.1 OK OK OK
S. Alam Steel Ltd 1.31 0.75 1.5 1.89 1.19 1.328 OK GOOD OK
GPH Ispat Ltd. 1.28 1.63 1.38 1.26 1.33 1.376 OK OK OK
Current Ratio AKS Steel Ltd. 0.92 0.89 0.94 0.93 0.91 0.918 POOR OK POOR
BSRM Steel Ltd. 0.57 0.8 0.7 0.58 0.71 0.672 POOR POOR POOR
S. Alam Steel Ltd 0.55 0.42 1.19 1.03 0.87 0.812 AVARAGE AVARAGE OK
GPH Ispat Ltd. 0.405 0.81 0.77 0.96 1.03 0.795 AVARAGE AVARAGE OK
Acid Test
Ratio AKS Steel Ltd. 0.91 0.9 0.93 0.87 0.85 0.892 OK OK OK
BSRM Steel Ltd. 4.69 3.12 4.23 3.34 4.07 3.89 GOOD GOOD GOOD
S. Alam Steel Ltd 2.75 4.79 3.19 4.7 2.83 3.652 GOOD GOOD AVERAGE
GPH Ispat Ltd. 4.87 5.04 4.95 3.32 3.54 4.344 GOOD GOOD GOOD
InventoryTurn. AKS Steel Ltd. 3.42 7.85 5.71 3.43 5.87 5.256 GOOD AVERAGE AVERAGE
BSRM Steel Ltd. 1.31 0.6 1.17 1.06 0.93 1.014 OK OK OK
S. Alam Steel Ltd 0.87 0.93 1.21 1.19 1.33 1.106 OK GOOD OK
GPH Ispat Ltd. 1.15 1.24 1.06 0.83 1.17 1.09 OK OK OK
Assets Turn. AKS Steel Ltd. 6.32 4.29 6.35 9.09 8.03 6.816 GOOD GOOD GOOD
BSRM Steel Ltd. 13.52% 18.04% 11.99% 10.10% 8.27% 12.38% GOOD GOOD GOOD
S. Alam Steel Ltd 3.72% 3.50% 2.98% 5.20% 4.92% 4.06% OK OK OK
GPH Ispat Ltd. 4.15% 7.17% 5.35% 7.16% 3.18% 5.40% AVERAGE AVERAGE AVERAGE
Gross Profit AKS Steel Ltd. 6.13% 4.94% 8.97% 7.39% 8.13% 7.01% OK OK OK
BSRM Steel Ltd. 6.44% 7.61% 4.49% 3.73% 2.83% 5.02% POOR POOR POOR
S. Alam Steel Ltd 5.06% 6.58% 3.83% 4.20% 3.96% 4.07% OK OK OK
GPH Ispat Ltd. 2.92% 2.89% 5.71% 6.66% 8.06% 5.02% GOOD GOOD GOOD
Net Profit AKS Steel Ltd. 2.69% 2.26% 3.30% 4.22% 3.97% 3.02% OK OK OK

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 BSRM Steel Ltd. 6.09 3.84 4.98 4.79 4.6 4.86 OK GOOD AVERAGE
S. Alam Steel Ltd 1.5 1.25 1.11 1.08 1.23 1.234 OK OK OK
GPH Ispat Ltd. 2.34 2.06 1.83 2.03 2.24 2.1 OK OK OK
EPS AKS Steel Ltd. 12.96 10.89 15.34 14.16 16.68 14.006 OK GOOD OK
BSRM Steel Ltd. 15.09 14.78 9.38 16.52 14.2 13.994 GOOD GOOD GOOD
S. Alam Steel Ltd 8.04 10.06 7.15 8.5 3.2 7.39 AGERAGE AGERAGE AGERAGE
GPH Ispat Ltd. 6.049 6.036 9.047 4.051 11.047 7.246 AVERAGE AVERAGE AVERAGE
ROA AKS Steel Ltd. 14.87 10.78 15.15 14.73 17.26 14.558 GOOD GOOD GOOD
BSRM Steel Ltd. 4.6 3.73 8.81 6.06 13.7 7.38 OK GOOD OK
S. Alam Steel Ltd 1.53 2.7 3.23 4.5 2.19 2.83 OK OK OK
GPH Ispat Ltd. 3.143 3.076 6.11 4.137 9.014 5.096 GOOD OK OK
ROE AKS Steel Ltd. 9.36 7.21 3.13 6.34 7.09 6.626 OK GOOD AVERAGE
BSRM Steel Ltd. 3 1.5 2 2 2.5 2.2 AVERAGE AVERAGE AVERAGE
S. Alam Steel Ltd 1.5 2.5 2.5 1.25 2 1.95 OK OK OK
GPH Ispat Ltd. 1.67 1.92 1.74 1.52 2.08 1.786 OK GOOD OK
Dividend Per
Share AKS Steel Ltd. 1.5 1.5 2 2 1.5 1.7 OK OK OK

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Findings of the Study–

Findings regarding various aspects of ratio analysis of BSRM steel limited, S. Alam Cold Rolled
Steels Limited, GPH Ispat Limited, AKS Steel Limited over the year from 2015 to 2019, in this
report we have found that-

 The liquidity conditions of BSRM steel limited, S. Alam Cold Rolled Steels Limited, GPH
Ispat Limited, is quite satisfactory, but AKS Steel Limited is not satisfaction. It is liquidity
ratios are around its standard level and it has amount of loans as compared to total assets
is average which resulted in an average risk.
 Activity activities of BSRM steel limited, S. Alam Cold Rolled Steels Limited, GPH Ispat
Limited, AKS Steel Limited is average. S. Alam Cold Rolled Steels Limited, GPH Ispat
Limited activity activities is less compare to another two company.
 Gross profit margin all the company is quite satisfaction, But S. Alam Cold Rolled Steels
Limited is very less compare to other compny.
 Net profit margin is good for GPH Ispat Limited last three years. On the other hand, BSRM
steel limited, S. Alam Cold Rolled Steels Limited, AKS Steel Limited is average. S. Alam
Cold Rolled Steels Limited net profit margin is not good last two or three years.
 EPS is good for BSRM steel limited and AKS Steel Limited, but the S. Alam Cold Rolled
Steels Limited and GPH Ispat Limited is very bad.
 ROA gives a satisfaction result. All of company all of the year ROA is a satisfaction result.
 The BSRM steel limited and AKS Steel Limited ROE is good on the other hand S. Alam
Cold Rolled Steels Limited and GPH Ispat Limited is very poor.

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Recommendation of the Study –

The overall performance of BSRM steel limited, S. Alam Cold Rolled Steels Limited, GPH
Ispat Limited, AKS Steel Limited shows a satisfactory position although they have been
suffering last few years. The liquidity ratios show that they have impressive ability to meet the
outside liabilities from current assets. They have low return on asset, return on equity at the
end of the study but it can be said that there is every possibility to get better financial condition
and improvements by taking appropriate and accurate action to protect decreasing tendency.
The problem of S. Alam Cold Rolled Steels Limited, GPH Ispat Limited, AKS Steel Limited
can be solved to certain extent. The following suggestion can be made in order to solve the
problem.

 All the company increase the current assets.

 BSRM steel limited, S. Alam Cold Rolled Steels Limited, GPH Ispat Limited, AKS
Steel Limited should decreased the inventories.
 They should increase dividend per share that will serve as a promotional tool.
 Improvement of productivity through work-study and training of front line supervisors.
 Contribution analysis for each of the product lines to optimize profit in light of demand
factors.
 Effects to bring selling prices in line with costs having regard to competition and other
market factors.
 They have to be more careful about utilization of working capital.
 Close attention should be given to inventories and debt management.
 Rationality and planning in materials purchases to avoid unnecessary inventory buildup
or shortage of materials.
 In the face of today’s global competition with open market operation, BSRM steel
limited must develop and retain the high achievers and motivated work force and equip
them with the latest skills and technologies.
 Provision for the training of officers and employees in modern management techniques.

30 | P a g e
Conclusion –

Financial performance analysis is helpful in assessing the financial position and profitability of a
concern company. This is done through comparison by ratios for the same concern over a period
of years or for one concern against another or for one concern against the industry as a whole or
for one concern against the predetermined standards or for one department of a concern against
other departments of the same concern. Accounting ratios calculated for a number of years show
the trend of the change of position. The trend is upward or downward or static. The ascertainment
of trend helps us in making estimates for the future. Thus we can say that there is lots of application
of financial analysis in the modern days of business. To assess any business condition financial
analysis gives a clear financial picture of any business organization. This helps to evaluate the
trend and condition of organization. From small to big business organization financial analysis
helps a great deal in decision making process. As it helps to give idea about the financial condition,
thus it helps in future financial projection and decision making process of any business house.
Eventually one can assess how important is financial analysis in the modern days of business. It
gives the exact picture of the financial condition and helps future projection of any organization.

BSRM steel limited is leading steel company in Bangladesh. It is gradually expanding its asset
base and able to proper utilize assets. No business stays at the top if it doesn’t maintain its
performance. Thus it is very important to fulfill the demand of the consumers through competitive
advantage.

S. Alam group has now set a new target of investment. It has now concentrated in specific
investment in large scale power projects under joint programmer of public and private sector. It
also aims to contribute and take active participation in social, economic and structural development
of the nation. This company has occupied a strong and dominant position in the fields in which it
works. Apart from its investment mentioned above it also shows its presence in the field like
banking, insurance, merchant banking, insurance, stock broker houses, etc.

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GPH Ispat Limited engages in the manufacture and trading of iron products and steel materials in
Bangladesh, promising a super strong future and economy with its world class products. Besides
structural bar, GPH Ispat Ltd. is also one of the producers of low & medium carbon and low
alloy steel billets in Bangladesh, the main ingredient of manufacturing graded steel bar.
Incorporated on May 17, 2006- GPH Ispat is exporting international standard GPH steel billets
and bars in multiple countries.

Abul Khair Steel re-rolling mill is the single largest steel facility in Bangladesh, capable of
producing 12 lac metric tons high quality graded hot-rolled steel bars per annum. 100% refined
imported steel billets, produced under strict metallurgical control, and are used to produce high
quality deformed steel bars. The plant is equipped with state-of-the art TMT technology which
enables improvement of chemical and mechanical properties of steel.

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Reference –

https://bsrm.com/wpcontent/uploads/2019/04/BSRM_SteelsAnnualReport_2019.pdf

https://bsrm.com/wpcontent/uploads/2018/04/BSRM_SteelsAnnualReport_2018.pdf

https://bsrm.com/wpcontent/uploads/2017/04/BSRM_SteelsAnnualReport_2017.pdf

https://bsrm.com/wpcontent/uploads/2016/04/BSRM_SteelsAnnualReport_2016.pdf

https://bsrm.com/wpcontent/uploads/2015/04/BSRM_SteelsAnnualReport_2015.pdf

https://www.gphispat.com.bd/AnnualReports/2019

https://www.gphispat.com.bd/AnnualReports/2018

https://www.gphispat.com.bd/AnnualReports/2017

https://www.gphispat.com.bd/AnnualReports/2016

https://www.gphispat.com.bd/AnnualReports/2015

www.s.alamgroupbd.com/RightShare/.../Annual%20Report%2019.pdf

www.s.alamgroupbd.com/RightShare/.../Annual%20Report%2018.pdf

www.s.alamgroupbd.com/RightShare/.../Annual%20Report%2017.pdf

www.s.alamgroupbd.com/RightShare/.../Annual%20Report%2016.pdf

www.s.alamgroupbd.com/RightShare/.../Annual%20Report%2015.pdf

https://ir.aksteel.com/financial-information/annual-reports-2019

https://ir.aksteel.com/financial-information/annual-reports-2018

https://ir.aksteel.com/financial-information/annual-reports-2017

https://ir.aksteel.com/financial-information/annual-reports-2016

https://ir.aksteel.com/financial-information/annual-reports-2015

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