M. Corporate Finance

A Report on Corporate Finance
Topics: “Comparative Study on Capital Structure & Dividend policy analysis of M I

Cement and Aramit Cement Limited “
M I Cement Industry - Target Company

Aramit Cement - Peer Company
Submitted To: Dr. Mahmud Osman Imam

Professor, Department of Finance
University of Dhaka
Submitted By: Chandan Kanti Nath

Master of Professional Finance (MPF)
Code: PF- 408
ID: Fin-02-056
Date of Submission: December 26, 2017.

Table of Contant
Sl No. Particulars Page Ref.

1 Origin of the report
2 Objectives of the report
3 Methodology
4 Limitations
5 Reporting Company
6 Overview of Cement Industry
7 Overview of M I Industry Ltd.
9 Vision and Mision of the Company
10 Goal Of the Company
11 CSR of the Company
12 Share Holding Position And Basic Information
13 Overview of Aramit Cement Ltd.
14 Vision and Mision of the Company
15 Share Holding Position
16 Capital Structure of M I Cement & Aramit Cement Ltd.
17 Checklist
18 Dividend Policy
19 Pecking Order Theory
20 Annexures
21 Financial Position of M I Cement
22 Financial Performance of M I Cement
23 Cash Flow Statement of M I Cement
24 Financial Position of Aramit Cement
25 Financial Performance of Aramit Cement
26 Cash Flow Statement of Aramit Cement
27 Conclusion & References
Origin of the report
The report “Capital Structure and Dividend Policy of M I Cement Industry Ltd. and Confidence Cement Industry
Ltd.” is mainly prepared for the course that is “Corporate Finance”. This report is mainly prepared for the partial
requirement of the course. This report is basically assigned to get an exposure of the practical world. This report is
authorized by my course teacher, Dr. Mahmud Osman Imam, Professor, Department of Finance, University of
Dhaka.
Objectives of the report

This report provide the followings:
1. To collect the practical data and merge the gap between our practical and theoretical knowledge.
2. To get an exposure to the real corporate world activities.
3. To know business environment of M I Cement Industry Ltd. And Confidence Cement Ltd.
4. To know the how to analyze capital structure of the company and its cost and dividend policy and behavior.
5. To know the how to calculate the profitability and growth rate.
Methodology
The data were derived from Dhaka Stock Exchange, Company Website.
Limitations
1. Insufficient information
2. Subjective Judgments
3. Lack of experience
Reporting Company
I have analyze two companiess. These are:
01. M I Cement Industry Ltd. Target Company
02. Aramit Cement Peer Company
3
Capital Structure
% of Debt & Equity in Capital Structure Annexure-1

M I Cement 2012 2013 2014 2015 2016
Debt 38.97% 38.06% 44.94% 46.59% 45.77%
Long Term Debt 20.47% 16.07% 9.18% 3.88% 1.04%
Short Term Debt 19% 22% 36% 43% 45%
Equity 61.03% 62% 55% 53% 54%
Aramit Cement
% of Debt & Equity in Capital Structure
Debt 74.82% 73.20% 65.70% 73.06% 78.03%
Long Term Debt 0.51% 0.20% 12.83% 29.87% 22.18%
Short Term Debt 74.31% 73.00% 52.87% 43.19% 55.85%
Equity 25.18% 26.80% 34.30% 26.94% 21.97%
70.00%
61.03% 61.94% 0.9

60.00%
55.06% 53.41% 54.23% 0.8 0.78028748861325
0.748181270611006
0.732016750429623 0.730615333386929
50.00% 0.7
44.94% 46.59% 45.77% 0.657004738675048
0.6
40.00% 38.97% 38.06%
Debt 0.5 Debt
30.00% Equity 0.4 Equity
0.342995261324952
0.3 0.267983249570377 0.269384666613071
20.00% 0.251818729388994
0.2 0.21971251138675
10.00% 0.1
0
0.00% 2012 2013 2014 2015 2016
2012 2013 2014 2015 2016
Fig: Capital Structure of M I Cement Fig: Capital Structure of Aramit Cement
Interpretation:
Capital Structure of M I Cement Ltd. In 2012 was 39%Debt & 61% Equity of total capital. The long term debt was paid in the
next years but company take short term loan. That’s why their debt equity ratio goes to 46% to 54% in 2016, but short term
loan was taken to meet up the working capital requirmrnts. Once short term loan was paid then % of equity will be increase.
On the other hand, Aramit Cement takes 80% debts and 20% equity in 2012. It is most leavered firm. There is no change of
this structure untill 2016. There short term and long term debt increase very high to meet up both working capital and fixed
investment.
In this capital structure we can easily interpret that Aramit cement is more levered firm than M I Cement and use optimal
capital Structure.
Stock Concept:
01.00 Debt Ratio Total Debt/Total Asset Annexure-2
% of Total Debt to total asset 2012 2013 2014 2015 2016

M I Cement 34.76% 35.14% 40.83% 42.51% 40.09%
% of Long Term Debt to total asset 18.25% 14.84% 8.34% 3.54% 0.91%
% of Short Term Debt to total asset 16.50% 20.30% 32.49% 38.97% 39.18%
Aramit Cement 44.54% 47.29% 53.77% 63.68% 66.37%

Industry Debt Ratio 28.28% 22.89% 26.53% 27.17% 26.50%
70.00%
66.37%
63.68%
60.00%
53.77%
50.00%
47.29%
44.54%
40.83% 42.51%
40.00% 40.09% M I Cement
34.76% 35.14% Aramit Cement
30.00% 28.28% 26.53% 27.17% 26.50% Industry Debt Ratio
22.89%
20.00%
10.00%
0.00%
2012 2013 2014 2015 2016
Fig: Debt Ratio
Analysis:
The debt to asset ratio is a leverage ratio that measures the amount of total assets that are financed by creditors instead of
investors. In other words, it shows what percentage of assets is funded by borrowing compared with the percentage of resources
that are funded by the investors.
Basically it illustrates how a company has grown and acquired its assets over time. Companies can generate investor interest to
obtain capital, produce profits to acquire its own assets, or take on debt. Obviously, the first two are preferable in most cases.
This is an important measurement because it shows how leveraged the company by looking at how much of company’s
resources are owned by the shareholders in the form of equity and creditors in the form of debt. Both investors and creditors
use this figure to make decisions about the company.
Analysts, investors, and creditors use this measurement to evaluate the overall risk of a company. Companies with a higher
figure are considered more risky to invest in and loan to because they are more leveraged. This means that a company with a
higher measurement will have to pay out a greater percentage of its profits in principle and interest payments than a company of
the same size with a lower ratio. Thus, lower is always better.
Debt ratio of both M I Cement & Aramit Cement is higher than the industy ratio.
Annexure-3
02.00 Debt to Equity Ratio Total Debt/Total Equity
% of Debt to total equity 2012 2013 2014 2015 2016

M I Cement 63.85% 61.45% 81.64% 87.22% 84.42% ###
Aramit Cement 297.11% 273.16% 191.55% 271.22% 355.14%
Industry Debt Ratio 53.04% 40.30% 48.45% 51.05% 50.57%
400.00%
350.00% 355.14%
300.00% 297.11%
273.16% 271.22%
250.00%
M I Cement
200.00% 191.55% Aramit Cement
150.00% Industry Debt Ratio
100.00%
81.64% 87.22% 84.42%
63.85%
53.04% 61.45%
50.00% 40.30% 48.45% 51.05% 50.57%
0.00%
1 2 3 4 5
Fig: Debt Equity Ratio
Analysis:
The debt to equity ratio shows the percentage of company financing that comes from creditors and investors. A higher debt to
equity ratio indicates that more creditor financing (bank loans) is used than investor financing (shareholders)
A lower debt to equity ratio usually implies a more financially stable business. Companies with a higher debt to equity ratio are
considered more risky to creditors and investors than companies with a lower ratio. Unlike equity financing, debt must be repaid
to the lender. Since debt financing also requires debt servicing or regular interest payments, debt can be a far more expensive
form of financing than equity financing. Companies leveraging large amounts of debt might not be able to make the payments.
Here, Aramit cement is more risky comparing with industry. Other other side M I Cement contain low risk because they have no
long term debt by paying frquently their loan. Their ratio increase because they use short term financing to meet up working
capital rewuirements.
Annexure-4
03.00 Financial Leverage Ratio (Net Financial Obligation/Total Equity)
2012 2013 2014 2015 2016
M I Cement 0.0110 0.0358 (0.0648) (0.0902) (0.1196)
NFO (439,809,956) (469,256,217) (1,233,746,062) (1,419,694,525) (1,747,057,227)

Total Equity 5,400,876,238 5,594,400,354 5,675,411,006 5,879,329,648 6,724,823,855
Aramit Cement (1.9754) (1.7036) (1.3531) (2.1029) (2.9787)
NFO (NFA-NFL) (456,888,535) (468,023,954) (710,120,190) (1,067,020,105) (1,445,795,939)

Total Equity 169,400,000 169,400,000 524,796,660 507,403,678 485,381,968
0.5000
- 0.0110 0.0358
(0.0648) (0.0902) (0.1196)
2012 2013 2014 2015 2016
(0.5000)
(1.0000)
Aramit Cement
(1.5000) (1.3531)
(1.7036) M I Cement
(2.0000) (1.9754)
(2.1029)
(2.5000)
(3.0000) (2.9787)
(3.5000)
Fig: Financial Leverage Ratio
Analysis:
Financial leverage ratios, sometimes called equity or debt ratios, measure the value of equity in a company by analyzing its
overall debt picture. These ratios either compare debt or equity to assets as well as shares outstanding to measure the true value
of the equity in a business.
In other words, the financial leverage ratios measure the overall debt load of a company and compare it with the assets or
equity. This shows how much of the company assets belong to the shareholders rather than creditors. When shareholders own a
majority of the assets, the company is said to be less leveraged. When creditors own a majority of the assets, the company is
considered highly leveraged. All of these measurements are important for investors to understand how risky the capital structure
of a company and if it is worth investing in.
Here, Aramit cement is in worse situation. There financial obligation is more than 2 times higher than it's equity. Aramit Cement
is more risky than the M I Cement. M I Cement have sufficient equity to repat it's debts. It seems good position for M I Cement.
Flow Concept:
Annexure-5
01.00 Interest Cover Ratio EBIT (Earning before Interest & Taxes)/Interest Expenses
2012 2013 2014 2015 2016

M I Cement 4.7009 3.5136 3.2919 3.1445 3.0990
EBIT 952,363,513 1,231,617,783 1,277,004,930 1,255,514,648 1,446,900,259
Interest Expenses 202,592,548 350,531,177 387,929,150 399,279,044 466,891,015
Interest Cover Ratio 1.6896 1.5538 1.1487 1.1465 1.1504
EBIT 172,434,036 151,730,281 121,372,189 171,101,836 195,083,324

5.0000
4.7009
4.5000
4.0000
3.5000 3.5136
3.2919
3.1445 3.0990
3.0000
2.5000 M I Cement
Interest Cover Ratio
2.0000
1.6896 1.5538
1.5000
1.1487 1.1465 1.1504
1.0000
0.5000
0.0000
2012 2013 2014 2015 2016
Fig: Interest Coverage Ratio
Analysis:
The interest coverage ratio is a financial ratio that measures a company’s ability to make interest payments on its debt in a timely
manner. Creditors and investors use this computation to understand the profitability and risk of a company. A creditor, on the
other hand, uses the interest coverage ratio to identify whether a company is able to support additional debt. If a company can’t
afford to pay the interest on its debt, it certainly won’t be able to afford to pay the principle payments. Thus, creditors use this
formula to calculate the risk involved in lending.
Analyzing a coverage ratio can be tricky because it depends largely on how much risky the creditor or investor is willing to take.
Depending on the desired risk limits, a bank might be more comfortable with a number than another. The basics of this
measurement don’t change, however.
If the computation is less than 1, it means the company isn’t making enough money to pay its interest payments. This type of
company is beyond risky and probably would never get bank financing.
If the coverage equation equals 1, it means the company makes just enough money to pay its interest. It can only cover the
interest on the current debt when it comes due.
If the coverage measurement is above 1, it means that the company is making more than enough money to pay its interest
obligations with some extra earnings left over to make the principle payments.
Here, M I Cement is in better sitution to cover it's debt than Aramit Cement. They have much more earnings to cover the
interest. On the other hand if Aramit Cement falls in danger or unavoidable cercumstances then company will fall in problem to
cover it's interest.
Annexure-6
02.00 Debt Service Ratio: EBIT/Interest + Principal
2012 2013 2014 2015 2016
M I Cement 0.2609 0.3251 0.2543 0.2272 0.2355

Aramit Cement 0.2185 0.1789 0.1093 0.1122 0.1030
0.3500
0.3251
0.3000
0.2609 0.2543
0.2500
0.2272 0.2355
0.2185
0.2000
0.1789 M I Cement
0.1500 Aramit Cement
0.1093 0.1122 0.1030

0.1000
0.0500
-
2012 2013 2014 2015 2016
Fig: Debt Service Ratio
Analysis:
The debt service coverage ratio is a financial ratio that measures a company's ability to service its current debts by comparing its
net operating income with its total debt service obligations. In other words, this ratio compares a company's available cash with
its current interest, principle, and sinking fund obligations.
The debt service coverage ratio is important to both creditors and investors, but creditors most often analyze it. Since this ratio
measures a firm's ability to make its current debt obligations, current and future creditors are particularly interest in it.
The debt service coverage ratio measures a firm's ability to maintain its current debt levels. This is why a higher ratio is always
more favorable than a lower ratio. A higher ratio indicates that there is more income available to pay for debt servicing.
Here, Aramit Cement is in better situation than Aramit Cement. If this ratio more than 1 then it has less risk to cover it's financial
obligation.
Annexure-7
03.00 Cash Flow Coverage Ratio Operating Cash Flow/Interest + {Principal/(1-Tc)}
2012 2013 2014 2015 2016

M I Cement 0.0424 0.1662 0.0160 0.1369 0.1724
Aramit Cement 0.1933 0.1346 (0.1504) (0.0750) (0.1020)
0.2500
0.2000 0.1933
0.1662 0.1724
0.1500
0.1346 0.1369
0.1000
0.0500 0.0424 M I Cement

0.0160 Aramit Cement
-
2012 2013 2014 2015 2016
(0.0500)
(0.0750)
(0.1000) (0.1020)
(0.1500) (0.1504)
(0.2000)
Fig: Cash Flow Coverage Ratio
Analysis:
The cash flow coverage ratio is an indicator of the ability of a company to pay interest and principal amounts when they become
due. This ratio tells the number of times the financial obligations of a company are covered by its earnings. A ratio equal to one
or more than one means that the company is in good financial health and it can meet its financial obligations through the cash
generated by operating activities. A ratio of less than one is an indicator of bankruptcy of the company within two years if it fails
to improve its financial position.
Here, Aramit cement is in bad situation, there cash flow coverage ratio is conjecutively negative for last three years. They are in
financial distress or bankruptcy threat. On the other hand, M I Cement is in good position and also need to improve their ratio to
avoid the financial ditress and smooth operation.
Cost of Capital
Annexure-1
Cost of Debt Cost of debt/Total debt
2012 2013 2014 2015 2016

M I Cement 6% 10% 8% 8% 8%
Cost of Debt 202,592,548 350,531,177 387,929,150 399,279,044 466,891,015
Total debt 3,448,242,178 3,437,936,724 4,633,191,382 5,127,781,531 5,676,815,876
Aramit Cement 15% 13% 11% 11% 10%

Cost of Debt 102,054,767 97,651,929 105,664,296 149,242,457 169,575,249
Total debt 687,176,958 750,441,003 1,005,243,895 1,376,161,873 1,723,786,572
Cost of Capital
M I Cement 11.44%
Aramit Cement 11.44%
(Calculation Shown in Annexure 8 & 9)
Weighted Average Cost of Capital (WACC)

2016
M I Cement
Weight
Debt 45.77%
quity 54.23%
WACC 9.97%
Aramit Cement
Weight
Debt 78.03%
quity 21.97%
WACC 10.19%
Annexure-10
01. Tangibility Ratio Tangible Asset (PPE)/Total Asset
A tangible asset is an asset that has a physical form. Tangible assets include both fixed assets, such as machinery, buildings
and land. This ratio represents the portion of tangible asset includes in total assets. How much tangible asset holds the
company to sustain.
2012 2013 2014 2015 2016
MI Cement 41.68% 42.67% 35.41% 34.91% 38.25%

Aramit Cement 42.44% 45.21% 42.22% 39.11% 36.24%
Debt Ratio
M I Cement 34.76% 35.14% 40.83% 42.51% 40.09%
Aramit Cement 44.54% 47.29% 53.77% 63.68% 66.37%
45.00% 45.00%
M I Cement Aramit Cement
50.00% 70.00%
40.00% 40.00%
45.00%
35.00% 35.00% 60.00%
40.00%
30.00% 30.00% 35.00% 50.00%
25.00% 25.00% 30.00% 40.00%

25.00%
20.00% 20.00% 30.00%
20.00%
15.00% 15.00% 15.00% 20.00%
10.00% 10.00% 10.00%
10.00%
5.00%
5.00% 5.00%
0.00% 0.00%
0.00% 0.00% 2012 2013 2014 2015 2016
2012 2013 2014 2015 2016
Fig: Tangibility ratio of M I Cement & Aramit Cement

Analysis:
The ratio of M I Cement is decreasing and also debt ratio is also decreasing. They paid their long term debt but taking short
term debt for covering net working capital and also this ratio decreasing for time ly repay the debt. They are not going in
major investment in PPE by using debt.
On the other hand ratio of both Aramit Cement is also decreasing. They also not going to invest in PPE but also increasing
debt because of covering networking capital due to shotage of internal fund.
Annexure-11
02. Company Growth ROE*(1-Dividend Payout Ratio)
A growth company is any company whose business generates significant positive cash flows or earnings, which increase at
significantly faster rates than the overall economy. A growth company tends to have very profitable reinvestment
opportunities for its own retained earnings. Thus, it typically pays little to no dividends to stockholders, opting instead to put
most or all of its profits back into its expanding business.
Read more: Growth Company https://www.investopedia.com/terms/g/growthcompany.asp#ixzz52GELMCED

Follow us: Investopedia on Facebook 2012 2013 2014 2015 2016
M I Cement 6.81% 7.14% 8.32% 8.28% 8.85%
Aramit Cement 22.16% 14.23% 2.61% 2.92% 5.14%
Debt Ratio
M I Cement 34.76% 35.14% 40.83% 42.51% 40.09%
Aramit Cement 44.54% 47.29% 53.77% 63.68% 66.37%
M I Cement 25.00%
Aramit Cement
70.00%
10.00% 45.00%
9.00% 60.00%
40.00% 20.00%
8.00% 35.00% 50.00%
7.00% 30.00% 15.00% 40.00%
6.00%
25.00%
5.00%
20.00% 10.00% 30.00%
4.00%
3.00% 15.00%
20.00%
2.00% 10.00% 5.00%
5.00% 10.00%
1.00%
0.00% 0.00% 0.00% 0.00%
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Fig: Company Growth
Analysis: Growth of M I Cement has increasing but growth of Aramit cement in not stable due to not retaining dividend and
increasing operating profit.Debt is stable for M I Cement which contain short term debt, on the other hand debt of Aramit
Cement increasing.
Annexure-12
03. Profitability
03.01 ROOA Net Income/Operating Asset
Return on operating assets (ROOA) is an efficiency financial ratio that calculates the percentage return a company earns from
investing money in assets used in its operating activities. In other words, this is the percentage profit that a company can
expect from the purchase of a new piece of equipment.
2012 2013 2014 2015 2016

M I Cement 8.82% 10.83% 9.52% 8.69% 8.01%
Aramit Cement 3.90% 3.33% 0.97% 0.89% 1.22%
Debt Ratio
M I Cement 34.76% 35.14% 40.83% 42.51% 40.09%
Aramit Cement 44.54% 47.29% 53.77% 63.68% 66.37%
12.00% 45.00% 4.50% 70.00%

40.00% 4.00% 60.00%
10.00%
35.00% 3.50%
50.00%
8.00% 30.00% 3.00%
25.00% 2.50% 40.00%
6.00%
20.00% 2.00% 30.00%
4.00% 15.00% 1.50%
20.00%
10.00% 1.00%
2.00%
5.00% 0.50% 10.00%
ROOA
0.00% ROOA
0.00% 0.00% 0.00%
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Fig: Return on Operating Assets
Analysis: Return on operating income isalmost stable of M I Cement, on the other hand return on operating asset is
decreasing. Debt ratio is also stable of M I ement but debt ratio is increasing that means company must pay first to it's
debtholders. Interest expenses is also a mejor concern for the company because huge amount must paid first.
Annexure-13
03.01 RNOA Net Income/ (Fixed Asset + Net Working Capital)
Return on Net Operating Assets (RNOA) can be used like Return on Assets. The difference is that Return on Net Operating
Assets captures the return on the company's Assets that are generating Revenue. It is a good indicator of how well a
company uses operating assets to create profit. Investors are generally more interested in companies with higher RNOA.
2012 2013 2014 2015 2016
M I Cement 7.70% 9.17% 9.78% 9.80% 10.19%

Aramit Cement 20.03% 14.86% 2.07% 1.52% 2.85%
Debt Ratio
M I Cement 34.76% 35.14% 40.83% 42.51% 40.09%
Aramit Cement 44.54% 47.29% 53.77% 63.68% 66.37%
25.00% 70.00%
12.00% 45.00%
40.00% 60.00%
10.00% 20.00%
35.00% 50.00%
8.00% 30.00% 15.00% 40.00%
25.00%
6.00% 30.00%
20.00% 10.00%
4.00% 15.00% 20.00%
5.00%
10.00% 10.00%
2.00%
5.00%
0.00% 0.00%
0.00% 0.00% RNOA 2012 2013 2014 2015 2016 RNOA
2012 2013 2014 2015 2016
Fig: return on Net Operating Asset

Analysis: RNOA is also Positive and stable for M I Cement comparing with Aramit Cement. On the other hand, RNOA is going
decling of Aramit Cement.
Annexure-14
04. Free Cash Flow Per share Free Cash Flow/No of Share Outstanding
Free cash flow (FCF) is a measure of a company's financial performance, calculated as operating cash flow minus capital
expenditures. FCF represents the cash that a company is able to generate after spending the money required to maintain or
expand its asset base. FCF is important because it allows a company to pursue opportunities that enhance shareholder value.
2012 2013 2014 2015 2016

M I Cement (4.14) 4.60 (0.06) 3.76 5.83
Aramit Cement 6.01 4.80 (10.34) (7.42) (14.04)
Debt Ratio
M I Cement 34.76% 35.14% 40.83% 42.51% 40.09%
Aramit Cement 44.54% 47.29% 53.77% 63.68% 66.37%
8.00 45.00%
40.00% 10.00 70.00%

6.00
35.00% 60.00%
4.00 5.00
30.00%
50.00%
2.00 -
25.00%
2012 2013 2014 2015 201640.00%
- 20.00% (5.00)
2012 2013 2014 2015 2016 30.00%
15.00%
(2.00) (10.00)
20.00%
10.00%
(4.00) (15.00) 10.00%
FCF
5.00%
FCF
(6.00) 0.00% (20.00) 0.00%
Analysis:
FCF of M I cement is growing for last two years and also positive. On the other hand, FCF is going to negative and also going in
worse situation. For Aramit cement it can not add valut to the shareholder.
Annexure-15
05. Financial Slack Financial Asset/Total Asset
Extra money that a company has available in case of a downturn in sales, revenue, or profit. Financial slack may help a
company make it through a difficult period. It is the equivalent of a company's savings.
2012 2013 2014 2015 2016
M I Cement 35.35% 37.19% 37.59% 38.12% 34.41%

Aramit Cement 14.93% 17.80% 15.79% 14.30% 10.70%
Debt Ratio
M I Cement 34.76% 35.14% 40.83% 42.51% 40.09%
Aramit Cement 44.54% 47.29% 53.77% 63.68% 66.37%
39.00% 45.00%
20.00% 70.00%
40.00% 18.00%
38.00%
60.00%
35.00% 16.00%
37.00%
30.00% 14.00% 50.00%
36.00% 25.00% 12.00%

40.00%
20.00% 10.00%
35.00%
30.00%
8.00%
15.00%
34.00% 6.00%
10.00% 20.00%
33.00% 4.00%
5.00% 10.00%
2.00%
32.00% Fin.0.00%
Slack Fin. Slack
2012 2013 2014 2015 2016 0.00% 0.00%
2012 2013 2014 2015 2016
Analysis:
Finacial Slack of M I Cement is positive & almost same for last few years. It may help to company to meet up emergency
crisis. On the other hand Financial Slack of Aramit cement is increasing, that’s means they are capable to earn by using it's
financial assets. It may help in financial crisis but company should take care its operating assets and productivity to generate
operating profit.
07. Book Value of Equity Per Share (Total Shareholder' Equity/Total Outstanding Share)
The book value per share may be used by some investors to determine the equity in a company relative to the market value
of the company, which is the price of its stock. In which book value per share is used in the denominator. In contrast to book
value, the market price reflects the future growth potential of the company.
2012 2013 2014 2015 2016

M I Cement 40.01 37.67 38.22 39.59 45.29
Aramit Cement 13.65 16.22 15.49 14.98 14.33
M I Cement
Total Shareholde's Equity 5,400,876,238 5,594,400,354 5,675,411,006 5,879,329,648 6,724,823,855
Total Outstanding Shares 135,000,000 148,500,000 148,500,000 148,500,000 148,500,000
M I Cement
Total Shareholde's Equity 231,286,234 274,728,165 524,796,660 507,403,678 485,381,968
50.00
45.00 45.29
40.00 40.01 39.59
37.67 38.22
35.00
30.00
25.00
20.00
15.00 16.22 15.49 14.98
13.65 14.33
10.00
5.00
-
2012 2013 2014 2015 2016
08. Book Value of Firm Per Share (Total Shareholder' Equity+Debt)/Total Outstanding Share
2012 2013 2014 2015 2016

M I Cement 65.55 60.82 69.42 74.12 83.51
Aramit Cement 54.22 60.52 45.16 55.60 65.21
M I Cement
Total Debt 3,448,242,178 3,437,936,724 4,633,191,382 5,127,781,531 5,676,815,876
Value of Firm 8,849,118,416 9,032,337,078 10,308,602,388 11,007,111,179 12,401,639,731
M I Cement
Total Shareholde's Equity 231,286,234 274,728,165 524,796,660 507,403,678 485,381,968
Value of Firm 687,176,958 750,441,003 1,005,243,895 1,376,161,873 1,723,786,572
Total Outstanding Shares 918,463,192 1,025,169,168 1,530,040,555 1,883,565,551 2,209,168,540
90.00
83.51
80.00
74.12
70.00 69.42
65.55 65.21
60.00 60.82
60.52
54.22 55.60
50.00
45.16
40.00
30.00
20.00
10.00
-
2012 2013 2014 2015 2016
09. Market Value Pershare (Total Out standing Share*Market Price per share)
2012 2013 2014 2015 2016
M I Cement 13,328,550,000 13,439,250,000 12,771,000,000 11,286,000,000 11,122,650,000

Aramit Cement 817,355,000 748,239,800 1,524,600,000 860,552,000 1,063,832,000
M I Cement
Total Out standing Share 135,000,000 148,500,000 148,500,000 148,500,000 148,500,000
Market Price per share 98.73 90.5 86 76 74.9
(30 June 2012) (30 June 2013) (30 June 2014) (30 June 2015) (18 June 2016)
Aramit Cement
Total Out standing Share 16,940,000 16,940,000 33,880,000 33,880,000 33,880,000
Market Price per share 48.25 44.17 45 25.4 31.4
(30 June 2012) (30 June 2013) (30 June 2014) (30 June 2015) (18 June 2016)
120
100 98.73
90.5
86
80
76 74.9
60
48.25
44.17 45
40
31.4
25.4
20
0
2012 2013 2014 2015 2016
06. Uncertainty of Operating Income (using 3 years Moving Average)
M I Cement
Moving Average 2010 2011 2012 2013 2014 2015 2016
EBIT 517,105,297 684,277,135 952,363,513 1,231,617,783 1,277,004,930 1,255,514,648 1,446,900,259
Moving Average of EBIT 717,915,315 956,086,144 1,153,662,075 1,254,712,454 1,326,473,279
Mean of EBIT 230,732,415 250,942,491 265,294,656
SD of EBIT 218,188,310 236,850,313 246,548,130
CV of EBIT 0.95 0.94 0.93
Aramit Cement
Moving Average 74,586,768 169,436,047 172,434,036 151,730,281 121,372,189 171,101,836 195,083,324
Moving Average of EBIT 138,818,950 164,533,455 148,512,169 148,068,102 162,519,116
Mean of EBIT 29,702,434 29,613,620 32,503,823
SD of EBIT 12,986,376 10,679,918 10,815,520
CV of EBIT 0.44 0.36 0.33
Debt Ratio
M I Cement 34.76% 35.14% 40.83% 42.51% 40.09%
Aramit Cement 44.54% 47.29% 53.77% 63.68% 66.37%
0.95 43.00% 0.50 70.00%

42.50% 0.45
60.00%
42.00% 0.40
0.35 50.00%
0.94 41.50%
0.30
41.00% 40.00%
0.25
40.50% 30.00%
0.20
0.93 40.00%
0.15 20.00%
39.50%
0.10
39.00% 10.00%
0.05
0.92 38.50% - 0.00%
2014 2015 2016 2014 2015 2016
Analysis:
CV of Aramit Cement is higher than the Aramit Cement. It means M I Cement is comparatively risky than the Aramit Cement.
TK IN '000
PADMA OIL 2015 2016 2017 2018 2019 2020
DPS 923175000992239000/
Divedend Payment Schedule
2019 2018 2017 2016 2015
MJLBDL (Target Co.) 45%C 45%C, 5%B 45% C 60%C,10%B ..

PADMAOIL (Peer Co.) 130%C 130%C 110%C 100%C 100%C
Dividend Behavior:
Dividend relevance therory is followed by MJLBDL. That means that there is a direct relationship between a firm's
dividend policy and market value and Company follows stable dividend policy.
There also dividend relevance therory is followed by POCL. There have direct relationship between a firm's
dividend policy and market value and Company follows stable dividend policy.
EPS Schedule:
2019 2018 2017 2016 2015
MJLBDL (Target Co.) 5.87 7 6.91 7.72 3.48
PADMAOIL (Peer Co.) 29.07 34.18 20.68 19.07 19.63
Rescaling of Dividend and EPS of M I Cement:
Stoc Shares / Restate Restate

Year Face Value Cas Dv DPS EPS
Dvdend Factors d EPS d DPS
2016 10 - 20% 2.00 5.01 2.00 3.72 4.00
2015 10 - 25% 2.50 4.37 2.00 3.24 5.00
1014 10 - 30% 3.00 4.54 2.00 3.37 6.00
2013 10 - 40% 4.00 4.48 2.00 3.33 8.00
2012 10 10% 35% 3.50 4.19 1.35 2.83 7.00
2011 10 35% 0% - 3.23 1.00 1.62 -
Justification Of Dividend Behavior
Company Maintain Regular Dividend Policy. But they retain their earnings. Net profit & EPS also increases
year to year.
Company not provide stock dividend since 2013 but Provide cash dividend. They Provide signal in 2012 by
issuing both stock dividend (10%) and cash dividend (35 %).
In 2013 Company provide 40% cash dividednd and gradually decrease the dividend and retain dividend for
payment long term Loan which is taken in 2012 amounting BDT. 1,557,704,892.
Now (2016) this amount is BDT. 129,371,414, so it is assume that in near future company may provide
handsome dividend if all finasncial indicator remain growing.
Information Of MJLBDL (Target Co.) at a Glance:

2,019 2,018 2,017 2,016 2,015
Cash dividend per share 45% 45% 45% 45% 60%

Stock dividend per share 0 5% 0 10% 0
DPS 4.5 4.3 4.5 3.6 2.1
EPS 4.87 4.48 5.56 6.58 5.71
Dividend Retaintion 55% 55% 55% 55% 40%
Market price per share 64.7 91 101.9 121.5 97
Book value of Equity per share 36.66 35.64 37.49 35 34.00
P / E ratio 13.29 20.31 18.33 18.47 16.99
Net Operating cash flow per share 7.01 5.01 5.05 8.04 6.02
Free cash flow per share 4.44 1.54 3.41 4.86 (1.52)
Sustainable growth rate 33.03% 32.30% 16.90% 16.23% 13.18%
Inflation rate 5.77% 5.59% 5.54% 5.70% 5.51%
GDP growth rate 5.24% 8.13% 7.87% 7.24% 7.11%
Information Of PADMA OIL (Per Co.) at a Glance:
2,019 2,018 2,017 2,016 2,015 2014
Cash dividend per share 130% 130% 110% 100% 100%

Stock dividend per share 0 0 0 0 0
DPS 12.82 12.83 11.06 9.64 10.1 9.4
EPS 0 29.07 34.18 20.68 19.07 19.63
Dividend Retaintion 0 -30% -30% -10% 0% 0%
Market price per share 230.6 229.6 255.6 187.8 199.5
Book value of Equity per share 150.48 142.85 126.78 103.60 92.92 83.85
P / E ratio #DIV/0! 7.90 7.48 9.08 10.46
Operating cash flow per share 7.33 4.21 (11.80) (5.02) (8.49)
Free cash flow per share 6.01 4.80 (10.34) (7.42) (14.04)
Sustainable growth rate 22.16% 14.23% 2.61% 2.92% 5.14%
Inflation rate 5.77% 5.59% 5.54% 5.70% 5.51%
GDP growth rate 5.24% 8.13% 7.87% 7.24% 7.11%
Ownership of Company M I Cement Aramit Cem
The Ownership details are as follows: 2016 2016

Sponsor/Director 67.08% 47.81%
Govt. 0.00% 0.00%
Institution 14.63% 20.52%
Foreign 0.67% 0.00%
Public 17.62% 31.67%
100% 100%
M I Cement Aramit Cement

Sponsor/Director
0.67% 17.62%
Govt.
Sponsor/Direc-
tor
14.63% Institution Institution
67.08% Public
Foreign
Public
This indicate that company's most ownership were contained by sponsors/directors, so there may have
chance to influence on future dividends due to ownership.
Pecking Order Theory:
In corporate finance, pecking order theory (or pecking order model) postulates that the cost of financing increases with
asymmetric information.
Financing comes from three sources, internal funds, debt and new equity. Companies prioritize their sources of
financing, first preferring internal financing, and then debt, lastly raising equity as a "last resort". Hence: internal
financing is used first; when that is depleted, then debt is issued; and when it is no longer sensible to issue any more
debt, equity is issued. This theory maintains that businesses adhere to a hierarchy of financing sources and prefer
internal financing when available, and debt is preferred over equity if external financing is required (equity would mean
issuing shares which meant 'bringing external ownership' into the company). Thus, the form of debt a firm chooses can
act as a signal of its need for external finance.
M I Cement 2012 2013 2014 2015 2016
Shareholder's Equity 5,400,876,238 5,594,400,354 5,675,411,006 5,879,329,648 6,724,823,855

Share Capital 1,350,000,000 1,485,000,000 1,485,000,000 1,485,000,000 1,485,000,000
Share Premium 2,956,560,000 2,956,560,000 2,956,560,000 2,956,560,000 2,956,560,000
Retained Earnings 871,919,154 932,436,118 1,015,341,470 1,221,082,558 1,596,350,972
Revaluation Reserve 222,397,084 220,404,236 218,509,536 216,687,090 686,912,883
Free Cash Flow per share (4.14) 4.60 (0.06) 3.76 5.83
Net Operating Cash Flow 1.73 6.31 0.81 7.64 10.68
Long Term Debt 1,811,139,113 1,451,551,878 946,349,388 426,932,519 129,371,414
Short Term Debt 1,637,103,065 1,986,384,846 3,686,841,994 4,700,849,012 5,547,444,462
Dividend Retaintion Ratio 65% 60% 70% 75% 80%
Net Profit After Tax 565,760,597 665,368,660 674,389,464 648,850,994 744,247,825
CashDividend Paid 35% 40% 30% 25% 20%
Unpaid Dividend 367,744,388 399,221,196 472,072,625 486,638,246 595,398,260
Analysis:
In above analysis we can interprete that M I cement can manage fund internaly first for liquidity, then they have no
long term debt so company can manage easily. Finally they can go external finance (Issuing equity) for severe liquidity
crisis.
M I Cement 2012 2013 2014 2015 2016
Shareholder's Equity 169,400,000 169,400,000 524,796,660 507,403,678 485,381,968

Share Capital 169,400,000 169,400,000 338,800,000 338,800,000 338,800,000
Share Premium - 84,700,000 84,700,000 84,700,000
Reserve & Surplus - 101,296,660 83,903,678 61,881,968
Free Cash Flow per share (4.14) 4.60 (0.06) 3.76 5.83
Long Term Debt 1,811,139,113 1,451,551,878 946,349,388 426,932,519 129,371,414
Short Term Debt 1,637,103,065 1,986,384,846 3,686,841,994 4,700,849,012 5,547,444,462
Dividend Retaintion Ratio 65% 60% 70% 75% 80%
CashDividend Paid 35% 40% 30% 25% 20%
Unpaid Dividend 367,744,388 399,221,196 472,072,625 486,638,246 595,398,260
Analysis:
In above analysis we can interprete that M I cement can manage fund internaly first for liquidity, then they have no
long term debt so company can manage easily. Finally they can go external finance (Issuing equity) for severe liquidity
Annexure-1:
Capital Structure
M I Cement 2012 2013 2014 2015 2016
Total Debt 3,448,242,178 3,437,936,724 4,633,191,382 5,127,781,531 5,676,815,876
Long Term Debt 1,811,139,113 1,451,551,878 946,349,388 426,932,519 129,371,414
Short Term Debt 1,637,103,065 1,986,384,846 3,686,841,994 4,700,849,012 5,547,444,462
Short Term Loan 1,351,027,065 1,486,345,228 3,143,054,994 4,142,616,763 5,064,048,878
Current portion of long term
286,076,000 500,039,618 543,787,000 558,232,249 483,395,584
debt

Share Capital 1,350,000,000 1,485,000,000 1,485,000,000 1,485,000,000 1,485,000,000
Share Premium 2,956,560,000 2,956,560,000 2,956,560,000 2,956,560,000 2,956,560,000
Total Capital 8,849,118,416 9,032,337,078 10,308,602,388 11,007,111,179 12,401,639,731

% of Debt 38.97% 38.06% 44.94% 46.59% 45.77%
% of Equity 61.03% 61.94% 55.06% 53.41% 54.23%
Total Asset 9,921,478,513 9,783,395,912 11,347,005,462 12,061,702,982 14,159,618,877

Total Liabilities 4,477,224,213 4,188,995,557 5,671,594,455 6,182,373,334 7,434,795,022
Aramit Cement Limited 2012 2013 2014 2015 2016

Total Debt 687,176,958 750,441,003 1,005,243,895 1,376,161,873 1,723,786,572
Long Term Debt 4,684,613 2,076,106 196,365,784 562,710,084 490,068,622

Short Term Debt 682,492,345 748,364,897 808,878,111 813,451,789 1,233,717,950
Short Term Loan 436,824,743 458,782,466 643,404,171 789,901,732 1,114,111,406
Current portion of Term Loan &
208,799,388 268,634,799 147,623,815 5,713,252 101,769,739
Lease Finance
Current portion of Redeemable
36,868,214 20,947,632 17,850,125 17,836,805 17,836,805
Debenture

Share Capital 169,400,000 169,400,000 338,800,000 338,800,000 338,800,000
Share Premium 61,886,234 105,328,165 84,700,000 84,700,000 84,700,000
Reserve & Surplus - - 101,296,660 83,903,678 61,881,968
Total Capital 918,463,192 1,025,169,168 1,530,040,555 1,883,565,551 2,209,168,540

% of Debt 74.82% 73.20% 65.70% 73.06% 78.03%
% of Equity 25.18% 26.80% 34.30% 26.94% 21.97%
Total Asset 1,542,929,078 1,586,740,176 1,869,616,264 2,161,089,717 2,597,155,749

Annexure-2
Debt Ratio: 2012 2013 2014 2015 2016
M I Cement 34.76% 35.14% 40.83% 42.51% 40.09%
Total Debt 3,448,242,178 3,437,936,724 4,633,191,382 5,127,781,531 5,676,815,876
Total Asset 9,921,478,513 9,783,395,912 11,347,005,462 12,061,702,982 14,159,618,877
Aramit Cement Limited 44.54% 47.29% 53.77% 63.68% 66.37%

Total Debt 687,176,958 750,441,003 1,005,243,895 1,376,161,873 1,723,786,572
Total Asset 1,542,929,078 1,586,740,176 1,869,616,264 2,161,089,717 2,597,155,749
Annexure-3
Debt Equity Ratio 2012 2013 2014 2015 2016

M I Cement 63.85% 61.45% 81.64% 87.22% 84.42%
Total Debt 3,448,242,178 3,437,936,724 4,633,191,382 5,127,781,531 5,676,815,876
Total Shareholder's Equity 5,400,876,238 5,594,400,354 5,675,411,006 5,879,329,648 6,724,823,855
Aramit Cement Limited 297.11% 273.16% 191.55% 271.22% 355.14%

Total Debt 687,176,958 750,441,003 1,005,243,895 1,376,161,873 1,723,786,572
Total Shareholder's Equity 231,286,234 274,728,165 524,796,660 507,403,678 485,381,968
Annexure-4
Financial Leverage Ratio (Net Financial Obligation/Total Equity)

NFO = Net Financial Asset-Net Financial Obligation
2012 2013 2014 2015 2016

M I Cement 0.0110 0.0358 (0.0648) (0.0902) (0.1196)
Here,
Financial Asset 3,507,671,391 3,638,459,518 4,265,500,831 4,597,395,276 4,872,649,083
Investments in Associates 26,499,730 35,998,681 57,655,003 96,955,744 133,919,313
Investment in Share 93,494,348 91,830,612 119,992,366 126,227,071 130,919,903
Current Account with Sister Concer 513,012,411 689,651,863 889,818,785 913,117,394 969,556,496
Non - Operating Cash 2,874,664,902 2,820,978,362 3,198,034,677 3,461,095,067 3,638,253,371
(Assuming Operating Cash is 0.5%)
Financial Obligation 3,448,242,178 3,437,936,724 4,633,191,382 5,127,781,531 5,676,815,876

Long Term Debt 1,811,139,113 1,451,551,878 946,349,388 426,932,519 129,371,414
Short term loans 1,351,027,065 1,486,345,228 3,143,054,994 4,142,616,763 5,064,048,878
Current portion of long term debt 286,076,000 500,039,618 543,787,000 558,232,249 483,395,584
NFO 59,429,213 200,522,794 (367,690,551) (530,386,255) (804,166,793)

Total Equity 5,400,876,238 5,594,400,354 5,675,411,006 5,879,329,648 6,724,823,855
Aramit Cement (1.9754) (1.7036) (1.3531) (2.1029) (2.9787)

Financial Asset 230,288,423 282,417,049 295,123,705 309,141,768 277,990,633
Investments 6,782,500 6,782,500 41,469,048 39,532,500 39,532,500
Non - Operating Cash 15,104,636 4,867,096 8,004,821 29,689,473 7,001,608
Financial Obligation 687,176,958 750,441,003 1,005,243,895 1,376,161,873 1,723,786,572

Long Term Debt 4,684,613 2,076,106 196,365,784 562,710,084 490,068,622
Short term loans 436,824,743 458,782,466 643,404,171 789,901,732 1,114,111,406
Current portion of Term Loan &
208,799,388 268,634,799 147,623,815 5,713,252 101,769,739
Lease Finance
36,868,214 20,947,632 17,850,125 17,836,805 17,836,805
Debenture
NFO (NFA-NFL) (456,888,535) (468,023,954) (710,120,190) (1,067,020,105) (1,445,795,939)

Total Equity 231,286,234 274,728,165 524,796,660 507,403,678 485,381,968
Annexure-5
Interest Coverage Ratio: EBIT/Interest Expsenses
2012 2013 2014 2015 2016
M I Cement 4.7009 3.5136 3.2919 3.1445 3.0990
Add: Financial Expenses 202,592,548 350,531,177 387,929,150 399,279,044 466,891,015
Add: Income Tax 184,010,368 215,717,945 214,686,316 207,384,610 235,761,419
EBIT 952,363,513 1,231,617,782 1,277,004,930 1,255,514,648 1,446,900,259
Aramit Cement 1.6896 1.5538 1.1487 1.1465 1.1504

Trading Profit 163,160,372 139,997,428 102,433,991 166,793,296 186,309,083
Add: Other Income 12,977,836 14,579,082 19,764,929 5,459,034 10,116,772
Less: Cont. in WPP & WF (3,704,172) (2,846,229) (826,731) (1,150,494) (1,342,531)
EBIT 172,434,036 151,730,281 121,372,189 171,101,836 195,083,324
Financial Expenses 102,054,767 97,651,929 105,664,296 149,242,457 169,575,249
Annexure-6
Debt Service Ratio: EBIT/Interest + Principal
2012 2013 2014 2015 2016
M I Cement 0.2609 0.3251 0.2543 0.2272 0.2355
Debt Principal 3,448,242,178 3,437,936,724 4,633,191,382 5,127,781,531 5,676,815,876
Long Term Loan 1,811,139,113 1,451,551,878 946,349,388 426,932,519 129,371,414
Short Term Loan 1,637,103,065 1,986,384,846 3,686,841,994 4,700,849,012 5,547,444,462
EBIT 952,363,513 1,231,617,782 1,277,004,930 1,255,514,648 1,446,900,259
Aramit Cement 0.2185 0.1789 0.1093 0.1122 0.1030
Debt Principal 687,176,958 750,441,003 1,005,243,895 1,376,161,873 1,723,786,572

Long Term Loan 4,684,613 2,076,106 196,365,784 562,710,084 490,068,622
Short Term Loan 682,492,345 748,364,897 808,878,111 813,451,789 1,233,717,950
EBIT 172,434,036 151,730,281 121,372,189 171,101,836 195,083,324
Annexure-7
Cash Flow Coverage Ratio Operating Cash Flow/Interest + {Principal/(1-Tc)}
2012 2013 2014 2015 2016
M I Cement 0.0424 0.1662 0.0160 0.1369 0.1724
Interest + {Principal/(1-Tc)} 5,507,580,514 5,639,664,599 7,515,915,892 8,288,173,707 9,200,453,901

Operating Cash Flow 233,558,290 937,062,975 119,987,162 1,134,272,933 1,586,197,717
Debt Principal 3,448,242,178 3,437,936,724 4,633,191,382 5,127,781,531 5,676,815,876
1-Tc 65% 65% 65% 65% 65%
Aramit Cement 0.1933 0.1346 (0.1504) (0.0750) (0.1020)
Interest + {Principal/(1-Tc)} 1,159,250,087 1,252,176,549 1,652,193,365 2,266,414,569 2,821,554,591

Operating Cash Flow 224,114,818 168,492,658 (248,552,728) (169,945,245) (287,762,951)
Debt Principal 687,176,958 750,441,003 1,005,243,895 1,376,161,873 1,723,786,572
1-Tc 65% 65% 65% 65% 65%
Annexure-10
Tangibility Ratio Tangible Asset (PPE)/Total Asset

M I Cement 41.6826% 42.6748% 35.4129% 34.9051% 38.2545%
2012 2013 2014 2015 2016
PPE 4,135,527,540 4,175,044,571 4,018,304,669 4,210,152,070 5,416,696,077
Property Plant & Equipment 2,770,455,941 4,082,860,704 3,926,836,388 4,203,551,837 4,951,214,875
Capital Work in Progress 1,365,071,599 92,183,867 91,468,281 6,600,233 465,481,202
Total Asset 9,921,478,513 9,783,395,911 11,347,005,461 12,061,702,984 14,159,618,877
Aramit Cement 42.4392% 45.2090% 42.2158% 39.1079% 36.2361%

PPE 654,807,442 717,348,870 789,274,109 845,155,916 941,108,398
Property, Plant & Equipment 102,827,859 110,350,575 82,533,940 85,656,651 152,159,407
Capital Work in progress 551,979,583 606,998,295 706,740,169 759,499,265 788,948,991
Total Asset 1,542,929,078 1,586,740,176 1,869,616,264 2,161,089,717 2,597,155,749
Annexure-11
Company Growth ROE*(1-Dividend Payout Ratio)
2012 2013 2014 2015 2016
M I Cement 6.81% 7.14% 8.32% 8.28% 8.85%

Net Income 565,760,597 665,368,660 674,389,464 648,850,994 744,247,825
Dividend Paid (Cash) 35% 40% 30% 25% 20%
ROE Net income ÷ shareholders’ equity
ROE 10.48% 11.89% 11.88% 11.04% 11.07%
(1-Dividend Payout Ratio) 65.00% 60.00% 70.00% 75.00% 80.00%
Aramit Cement 22.16% 14.23% 2.61% 2.92% 5.14%

Net Income 51,252,586 43,441,931 15,230,617 16,487,018 28,345,308
Dividend Paid (Cash) 0% 10% 10% 10% 12%

ROE 22% 16% 3% 3% 6%
(1-Dividend Payout Ratio) 100% 90% 90% 90% 88%
Annexure-12
Profitability
01. ROOA Net Income/Operating Asset
M I Cement 8.82% 10.83% 9.52% 8.69% 8.01%
2012 2013 2014 2015 2016
Net Income 565,760,597 665,368,660 674,389,464 648,850,994 744,247,825
Operating Asset 6,413,807,122 6,144,936,393 7,081,504,630 7,464,307,708 9,286,969,794
Inventories 442,126,977 432,775,981 626,525,720 722,240,942 797,868,489
Trade receivables 753,851,554 667,643,514 1,169,445,807 1,169,678,553 1,065,262,109
Other receivables 61,234,099 109,357,300 57,331,527 53,961,432 75,030,322
Advance, Seposits & Prepayments 275,326,903 231,078,396 345,964,790 367,850,046 730,491,856
Advance Income Tax 717,452,042 494,888,145 823,978,904 899,103,460 1,156,538,198
Operating Asset 28,288,007 34,148,486 39,953,213 41,321,205 45,082,743
2012 2013 2014 2015 2016
Aramit Cement 3.9045% 3.3306% 0.9673% 0.8903% 1.2222%
Net Income 51,252,586 43,441,931 15,230,617 16,487,018 28,345,308

Operating Asset 1,312,640,655 1,304,323,127 1,574,492,559 1,851,947,949 2,319,165,116
Property Plant & Equipment 102,827,859 110,350,575 82,533,940 85,656,651 152,159,407
Capital Work in Progress 551,979,583 606,998,295 706,740,169 759,499,265 788,948,991
Inventories 140,770,770 91,035,394 149,365,619 123,793,868 107,898,728
Trade Debtors 299,142,030 298,503,853 335,897,318 512,599,699 866,019,791
Other Receivables 3,546,955 3,546,955 6,366,562 3,598,956 3,609,648
Operating Cash & Cash Equivalent 5,510,490 4,357,026 3,118,495 4,317,422 7,869,619
Annexure-13
02. RNOA Net Income/ (Fixed Asset + Net Working Capital)
M I Cement 7.70% 9.17% 9.78% 9.80% 10.19%
2012 2013 2014 2015 2016

Net Income 565,760,597 665,368,660 674,389,464 648,850,994 744,247,825
Fixed Asset 4,135,527,540 4,175,044,571 4,018,304,669 4,210,152,070 5,416,696,077
Net Working Capital 3,208,021,484 3,077,046,402 2,877,759,709 2,410,614,259 1,887,754,484
Current Asset 5,759,451,243 5,572,352,659 7,271,045,789 7,754,595,170 8,609,003,487
Current Liability 2,551,429,759 2,495,306,257 4,393,286,080 5,343,980,911 6,721,249,003
Aramit Cement 20.03% 14.86% 2.07% 1.52% 2.85%
Net Income 51,252,586 43,441,931 15,230,617 16,487,018 28,345,308

Fixed Asset 661,589,942 724,131,370 828,806,609 884,688,416 980,640,898
Net Working Capital (405,772,059) (431,780,318) (94,089,604) 203,453,560 13,748,898
Current Asset 881,339,136 862,608,806 1,040,809,655 1,276,401,301 1,616,514,851
Current Liability 1,287,111,195 1,294,389,124 1,134,899,259 1,072,947,741 1,602,765,953
Annexure-14
Free Cash Flow Per share Free Cash Flow/No of Share Outstanding
M I Cement (4.14) 4.60 (0.06) 3.76 5.83

Free Cash Flow (559,282,594) 682,847,885 (9,400,697) 558,124,859 865,869,399
Operating Cash Flow 233,558,290 937,062,975 119,987,162 1,134,272,933 1,586,197,717
Capital Expenditure (792,840,884) (254,215,090) (129,387,859) (576,148,074) (720,328,318)
Number of Share Outstanding 135,000,000 148,500,000 148,500,000 148,500,000 148,500,000
Aramit Cement 6.01 4.80 (10.34) (7.42) (14.04)

Free Cash Flow 101,767,666 81,307,840 (350,439,445) (251,245,255) (475,648,493)
Operating Cash Flow 224,114,818 168,492,658 (248,552,728) (169,945,245) (287,762,951)
Number of Share Outstanding 16,940,000 16,940,000 33,880,000 33,880,000 33,880,000
Annexure-15
Financial Slack Financial Asset/Total Asset

M I Cement 35.35% 37.19% 37.59% 38.12% 34.41%
2012 2013 2014 2015 2016
Financial Asset 3,507,671,391 3,638,459,518 4,265,500,831 4,597,395,276 4,872,649,083

Current Account with Sister Concer 513,012,411 689,651,863 889,818,785 913,117,394 969,556,496
Total Asset 9,921,478,513 9,783,395,911 11,347,005,461 12,061,702,984 14,159,618,877
Aramit Cement 14.93% 17.80% 15.79% 14.30% 10.70%
Financial Asset 230,288,423 282,417,049 295,123,705 309,141,768 277,990,633

Investments 6,782,500 6,782,500 41,469,048 39,532,500 39,532,500
Non - Operating Cash 15,104,636 4,867,096 8,004,821 29,689,473 7,001,608
Total Asset 1,542,929,078 1,586,740,176 1,869,616,264 2,161,089,717 2,597,155,749
M I Cement Annexure-8
Cost of Equity (Using C Ke = Rf+(Rm-Rf)B
Market
Year Month Index Data MI Cement Cash Dividend Bonus share Dividend Capital MI Cement Return
Ltd Info Adjustment Yield Gain Return
(RM)
January 4,136.31 81.8 0 0
February 3,973.28 83.7 0 0 0.00% 2.32% 2.32% -3.94%
March 3,590.05 71.3 0 0 0.00% -14.81% -14.81% -9.65%
April 3,438.90 63.4 0 0 0.00% -11.08% -11.08% -4.21%
May 3,878.07 77.5 0 0 0.00% 22.24% 22.24% 12.77%
June 4,104.65 90.5 0 0 0.00% 16.77% 16.77% 5.84%
2013
July 3,940.81 89 0 0 0.00% -1.66% -1.66% -3.99%
August 4,127.48 97.1 0 0 0.00% 9.10% 9.10% 4.74%
September 3,937.68 90.6 0 0 0.00% -6.69% -6.69% -4.60%
October 3,967.73 89.7 0 0 0.00% -0.99% -0.99% 0.76%
November 4,230.73 82.6 4 0 4.46% -7.92% -3.46% 6.63%
December 4,266.55 78.2 0 0 0.00% -5.33% -5.33% 0.85%
January 4,753.17 88 0 0 0.00% 12.53% 12.53% 11.41%
February 4,749.87 87.2 0 0 0.00% -0.91% -0.91% -0.07%
March 4,491.98 84.1 0 0 0.00% -3.56% -3.56% -5.43%
April 4,566.86 89.7 0 0 0.00% 6.66% 6.66% 1.67%
May 4,430.48 85.7 0 0 0.00% -4.46% -4.46% -2.99%
June 4,480.52 86 0 0 0.00% 0.35% 0.35% 1.13%
2014
July 4,427.16 83.3 0 0 0.00% -3.14% -3.14% -1.19%
August 4,549.52 83.9 0 0 0.00% 0.72% 0.72% 2.76%
September 5,074.31 84.3 0 0 0.00% 0.48% 0.48% 11.54%
October 5,173.23 84.9 0 0 0.00% 0.71% 0.71% 1.95%
November 4,769.43 75.6 3 0 3.53% -10.95% -7.42% -7.81%
December 4,864.96 72.2 0 0 0.00% -4.50% -4.50% 2.00%
January 4,724.05 68.6 0 0 0.00% -4.99% -4.99% -2.90%
February 4,624.95 66.7 0 0 0.00% -2.77% -2.77% -2.10%
March 4,530.48 66.3 0 0 0.00% -0.60% -0.60% -2.04%
April 4,047.29 68 0 0 0.00% 2.56% 2.56% -10.67%
May 4,586.95 78.3 0 0 0.00% 15.15% 15.15% 13.33%
June 4,583.11 76 0 0 0.00% -2.94% -2.94% -0.08%
2015
July 4,792.31 77.3 0 0 0.00% 1.71% 1.71% 4.56%
August 4,768.67 77.5 0 0 0.00% 0.26% 0.26% -0.49%
September 4,852.08 79.8 0 0 0.00% 2.97% 2.97% 1.75%
October 4,564.49 74.7 0 0 0.00% -6.39% -6.39% -5.93%
November 4,581.00 82.9 2.5 0 3.35% 10.98% 14.32% 0.36%
December 4,629.64 85.4 0 0 0.00% 3.02% 3.02% 1.06%
January 4,540.89 76.3 0 0 0.00% -10.66% -10.66% -1.92%
February 4,511.97 77.9 0 0 0.00% 2.10% 2.10% -0.64%
March 4,357.54 76.8 0 0 0.00% -1.41% -1.41% -3.42%
April 4,195.70 76.4 0 0 0.00% -0.52% -0.52% -3.71%
May 4,419.39 76.1 0 0 0.00% -0.39% -0.39% 5.33%
June 4,507.58 74.9 0 0 0.00% -1.58% -1.58% 2.00%
2016
July 4,525.35 75.8 0 0 0.00% 1.20% 1.20% 0.39%
August 4,526.58 76.7 0 0 0.00% 1.19% 1.19% 0.03%
September 4,695.19 76.2 0 0 0.00% -0.65% -0.65% 3.72%
October 4,592.18 78.9 0 0 0.00% 3.54% 3.54% -2.19%
November 4,801.24 75.2 2 0 2.53% -4.69% -2.15% 4.55%
December 5,036.05 82.5 0 0 0.00% 9.71% 9.71% 4.89%
January 5,468.34 83.9 0 0 0.00% 1.70% 1.70% 8.58%
February 5,612.70 84.3 0 0 0.00% 0.48% 0.48% 2.64%
March 5,719.61 102.3 0 0 0.00% 21.35% 21.35% 1.90%
2017
April 5,475.55 99.1 0 0 0.00% -3.13% -3.13% -4.27%
May 5,656.05 91.2 0 0 0.00% -7.97% -7.97% 3.30%
June 5,403.12 93.3 0 0 0.00% 2.30% 2.30% -4.47%
Cost of Capital calculation using market data:
Risk-free rate 5.000%

Rm - Market return monthly 0.637%
Rm - Annualized market return 7.643%
Market risk premium 2.643%
COV (Rm, Ri) 0.0022
VAR (Rm) 0.0027
Beta 0.81
Adjusted Beta 0.87
Ke - CAPM 7.31%
This Cost of Capital is not acceptable because the rate is low than the market. The rwason is that any information is not adjusted in the
market, so its givel lower cost of capital.
So Cost of Capital (Ke) is calculated in alternative way:
5 Years T- Bill 4.40 (As per Bangladesh Bank Website)

Inflation Rate 6.04 (As per Bangladesh Bank Website)
Risk Premium 1 (Assume)
Cost of equity (Ke) 11.44
Aramit Cement Annexure-9
Cost of Equity (Using CAPM Model) Ke = Rf+(Rm-Rf)B
Aramit Market
Year Month Aramit
Index Data Cement Cash Dividend Bonus share Dividend Capital Cement Return
Ltd Info Adjustment Yield Gain
Return (RM)
January 4,136.31 46.91 0 0
February 3,973.28 46.91 0 0 0.00% 0.00% 0.00% -3.94%
March 3,590.05 37.77 0 0 0.00% -19.48% -19.48% -9.65%
April 3,438.90 37.36 0 0 0.00% -1.09% -1.09% -4.21%
May 3,878.07 40.5 0 0 0.00% 8.40% 8.40% 12.77%
June 4,104.65 44.17 0 0 0.00% 9.06% 9.06% 5.84%
2013
July 3,940.81 38.82 0 0 0.00% -12.11% -12.11% -3.99%
August 4,127.48 47.43 0 0 0.00% 22.18% 22.18% 4.74%
September 3,937.68 44.4 0 0 0.00% -6.39% -6.39% -4.60%
October 3,967.73 38.58 0 0 0.00% -13.11% -13.11% 0.76%
November 4,230.73 40.62 4 0 10.37% 5.29% 15.66% 6.63%
December 4,266.55 49.06 0 0 0.00% 20.78% 20.78% 0.85%
January 4,753.17 63.2 0 0 0.00% 28.82% 28.82% 11.41%
February 4,749.87 66.3 0 0 0.00% 4.91% 4.91% -0.07%
March 4,491.98 54.5 0 0 0.00% -17.80% -17.80% -5.43%
April 4,566.86 46.6 0 0 0.00% -14.50% -14.50% 1.67%
May 4,430.48 43.4 0 0 0.00% -6.87% -6.87% -2.99%
June 4,480.52 45 0 0 0.00% 3.69% 3.69% 1.13%
2014
July 4,427.16 42.8 0 0 0.00% -4.89% -4.89% -1.19%
August 4,549.52 42.6 0 0 0.00% -0.47% -0.47% 2.76%
September 5,074.31 45.2 0 0 0.00% 6.10% 6.10% 11.54%
October 5,173.23 41.9 0 0 0.00% -7.30% -7.30% 1.95%
November 4,769.43 37.8 3 0 7.16% -9.79% -2.63% -7.81%
December 4,864.96 39 0 0 0.00% 3.17% 3.17% 2.00%
January 4,724.05 34.9 0 0 0.00% -10.51% -10.51% -2.90%
February 4,624.95 33.3 0 0 0.00% -4.58% -4.58% -2.10%
March 4,530.48 27.8 0 0 0.00% -16.52% -16.52% -2.04%
April 4,047.29 20.1 0 0 0.00% -27.70% -27.70% -10.67%
May 4,586.95 26.7 0 0 0.00% 32.84% 32.84% 13.33%
June 4,583.11 25.4 0 0 0.00% -4.87% -4.87% -0.08%
2015
July 4,792.31 36.6 0 0 0.00% 44.09% 44.09% 4.56%
August 4,768.67 35.8 0 0 0.00% -2.19% -2.19% -0.49%
September 4,852.08 43.3 0 0 0.00% 20.95% 20.95% 1.75%
October 4,564.49 37.2 0 0 0.00% -14.09% -14.09% -5.93%
November 4,581.00 36 2.5 0 6.72% -3.23% 3.49% 0.36%
December 4,629.64 41.1 0 0 0.00% 14.17% 14.17% 1.06%
January 4,540.89 37.9 0 0 0.00% -7.79% -7.79% -1.92%
February 4,511.97 35.8 0 0 0.00% -5.54% -5.54% -0.64%
March 4,357.54 32.2 0 0 0.00% -10.06% -10.06% -3.42%
April 4,195.70 27.2 0 0 0.00% -15.53% -15.53% -3.71%
May 4,419.39 33.1 0 0 0.00% 21.69% 21.69% 5.33%
June 4,507.58 31.4 0 0 0.00% -5.14% -5.14% 2.00%
2016
July 4,525.35 33 0 0 0.00% 5.10% 5.10% 0.39%
August 4,526.58 35.3 0 0 0.00% 6.97% 6.97% 0.03%
September 4,695.19 34.7 0 0 0.00% -1.70% -1.70% 3.72%
October 4,592.18 31.6 0 0 0.00% -8.93% -8.93% -2.19%
November 4,801.24 33.3 2 0 6.33% 5.38% 11.71% 4.55%
December 5,036.05 37.2 0 0 0.00% 11.71% 11.71% 4.89%
Cost of Capital calculation using market data:
Risk-free rate 5.000%

Rm - Market return monthly 0.555%
Rm - Annualized market return 6.656%
COV (Rm, Ri) 0.0056
VAR (Rm) 0.0028
Beta 1.98
Adjusted Beta 1.66
Ke - CAPM 7.75%
This Cost of Capital is not acceptable because the rate is low than the market. The rwason is that any information is not adjusted in the
market, so its givel lower cost of capital.
So Cost of Capital (Ke) is calculated in alternative way:
5 Years T- Bill 4.4 (As per Bangladesh Bank Website)

Inflation Rate 6.04 (As per Bangladesh Bank Website)
Risk Premium 1 (Assume)
Cost of equity (Ke) 11.44
M I Cement
Statement of Financial Position
As at 30 June
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

Partculars
(Year) (Year) (Year) (Year) (Year)
Asset
Non Current Asset 4,135,527,540 4,175,044,571 4,018,304,669 4,210,152,070 5,416,696,077
Current Asset 5,759,451,243 5,572,352,659 7,271,045,789 7,754,595,170 8,609,003,487
Inventories 442,126,977 432,775,981 626,525,720 722,240,942 797,868,489
Trade receivables 753,851,554 667,643,514 1,169,445,807 1,169,678,553 1,065,262,109
Current Account with Sister Concerns 513,012,411 689,651,863 889,818,785 913,117,394 969,556,496
Other receivables 61,234,099 109,357,300 57,331,527 53,961,432 75,030,322
Advance Income Tax 717,452,042 494,888,145 823,978,904 899,103,460 1,156,538,198
Cash & cash equivalents 2,902,952,909 2,855,126,848 3,237,987,890 3,502,416,272 3,683,336,114
Total Assets 9,921,478,513 9,783,395,911 11,347,005,461 12,061,702,984 14,159,618,877

Share Capital 1,350,000,000 1,485,000,000 1,485,000,000 1,485,000,000 1,485,000,000
Share Premium 2,956,560,000 2,956,560,000 2,956,560,000 2,956,560,000 2,956,560,000
Non Current Liabilities 1,969,172,516 1,693,689,300 1,278,308,375 838,392,425 713,546,019
Long Term Borrowing net off current
1,811,139,113 1,451,551,878 946,349,388 426,932,519 129,371,414
Maturity
Deferred liability-Gratuity 9,907,118 13,831,163 44,132,448 351,470,278 80,286,677
Defferred Tax Liabilities 148,126,285 228,306,259 287,826,539 59,989,628 503,887,928
Current Liabilities and Provisions 2,551,429,759 2,495,306,257 4,393,286,080 5,343,980,911 6,721,249,003
Trade Payables 148,526,299 136,889,183 107,983,409 126,122,045 349,900,640
Other payables 47,471,216 65,020,563 134,994,953 150,168,865 270,338,013
Short term loans 1,351,027,065 1,486,345,228 3,143,054,994 4,142,616,763 5,064,048,878
Provisions for tax liabilities 663,483,838 240,504,892 395,049,741 292,394,421 469,928,794
Liabilities for WPPF 37,173,812 44,054,330 44,453,789 42,811,780 49,000,462
Payable to IPO Applicants 13,310,798 12,866,055 12,720,975 12,840,221 12,833,356
Unclaimed Dividend 4,360,731 9,586,388 11,241,219 18,794,567 21,803,276
Total Owners Equity & Liabilities 9,921,478,513 9,783,395,911 11,347,005,461 12,061,702,984 14,159,618,877
Book Value Per Share 40.01 37.67 38.22 39.59 45.29
No. of share 135,000,000 148,500,000 148,500,000 148,500,000 148,500,000

- - - - -
Statement of Comprehensive Income
M I Cement
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

Particulars
Revenue 5,657,601,485 6,829,697,132 7,990,642,611 8,264,240,985 9,016,548,629

Costs of Sales (4,911,277,867) (5,731,175,014) (6,731,727,411) (6,850,549,283) (7,357,193,512)
Gross Profit 746,323,618 1,098,522,118 1,258,915,200 1,413,691,702 1,659,355,117
Other Operating Income 64,193,352 36,034,821 23,430,000 23,460,000 40,086,000
Administrative expenses (89,366,970) (112,012,132) (114,206,125) (157,173,325) (150,300,608)
Selling & Distribution expenses (146,257,762) (200,077,789) (231,034,362) (295,305,086) (353,005,066)
Operating Profit 574,892,238 822,467,018 937,104,713 984,673,291 1,196,135,443
Non Operating Income 27,829,589 18,503,603 40,979,579 6,630,465 33,860,900
Financial Income/(Expenses) 177,928,220 74,671,363 (66,211,045) (131,557,113) (237,950,206)
Share of profit/ (loss) in 6,294,730 9,498,951 21,656,322 39,300,741 36,963,569
Associate
786,944,777 925,140,935 933,529,569 899,047,384 1,029,009,706
Contribution to Wppf Funds (37,173,812) (44,054,330) (44,453,789) (42,811,780) (49,000,462)
Profit Before Tax 749,770,965 881,086,605 889,075,780 856,235,604 980,009,244
Income Tax Expenses (184,010,368) (215,717,945) (214,686,316) (207,384,610) (235,761,419)

Current Tax (134,681,334) -134882516 (154,544,848) (143,173,223) (177,534,373)
Deffered Tax (49,329,034) (80,835,429) (60,141,468) (64,211,387) (58,227,046)
The number of shares 135,000,000 148,500,000 148,500,000 148,500,000 148,500,000
Earnings Per Share - Basic 3.81 4.48 4.54 4.37 5.01
EBIT 952,363,513 1,231,617,783 1,277,004,930 1,255,514,648 1,446,900,259

Statement of Cash Flows
M I Cement
For the year ended 2012, 2013, 2014, 2015, 2016
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

Particulars
Cash Flow From Operating Activities

Cash received from customers 5,246,797,411 6,902,052,681 7,475,412,982 8,550,502,347 9,097,768,811
Payment to suppliers (4,601,959,504) (5,493,792,801) (6,702,926,476) (7,095,276,316) (6,817,096,343)
Income tax paid (419,473,486) (335,297,563) (329,090,759) (320,953,098) (257,434,738)
Other receipts 209,020,713 79,285,300 75,554,819 - 278,729,860
Other payments (200,826,844) (215,184,642) (398,963,404) - (715,769,873)
Net Cash Flow from Operating Actvities 233,558,290 937,062,975 119,987,162 1,134,272,933 1,586,197,717
Cash Flow From Investing Activities

Purchase of Property, Plant & Equipment (792,840,884) (254,215,090) (129,387,859) (576,148,074) (720,328,318)
Proceeds on Sale of Property, Plant &
2,802,420 4,142,200 - 1,000,000 12,167,085
Equipment
Increase/Decrease of Payment for CWIP (1,294,590,343) (80,557,443) (1,259,649) 85,898,019 (352,968,843)
Investment in Share (93,494,348) 405,290 (9,076,102) (13,088,379) (2,399,138)

Paid to Associates Companies (156,849,470) (176,639,452) (200,166,922) (23,298,608) (56,439,102)
Net Cash Flow from Investing Activities (2,334,972,625) (506,864,495) (339,890,532) (525,637,042) (1,119,968,316)
Cash Flow From Financing Activities

Receipt of Short Term Loasn 743,150,871 135,318,163 1,656,709,767 999,561,769 921,432,115
Repayment of Trrm Loan 1,557,704,892 (145,623,617) (461,455,108) (504,971,621) (372,397,770)
Paid to IPO Applicants (18,217,532) (444,744) (145,080) - -
Paid against Financial Expenses - - - (400,970,248) (466,095,750)
Increase of IPO Application fund due to Fx
- - - 119,246 (6,865)
Fluctuations
Dividend paid to equity holders (145,639,269) (467,274,343) (592,345,168) (437,946,655) (368,241,289)
Net Cash Flow Financing Activities 2,136,998,962 (478,024,541) 602,764,411 (344,207,509) (285,309,559)
Increase/(decrease) in Cash 35,584,627 (47,826,061) 382,861,041 264,428,382 180,919,842

Cash at the begning of the period 2,867,368,280 2,902,952,909 2,855,126,850 3,237,987,890 3,502,416,272
Cash at the end of the period 2,902,952,907 2,855,126,848 3,237,987,891 3,502,416,272 3,683,336,114

Aramit Cement
As at 31 December
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

Partculars
Asset
Non Current Asset 661,589,942 724,131,370 828,806,609 884,688,416 980,640,898
Property Plant & Equipment 102,827,859 110,350,575 82,533,940 85,656,651 152,159,407
Capital Work in Progress 551,979,583 606,998,295 706,740,169 759,499,265 788,948,991
Investment 6,782,500 6,782,500 39,532,500 39,532,500 39,532,500
Current Asset 881,339,136 862,608,806 1,040,809,655 1,276,401,301 1,616,514,851

Inventories 140,770,770 91,035,394 149,365,619 123,793,868 107,898,728
Trade Debtors 299,142,030 298,503,853 335,897,318 512,599,699 866,019,791
Short Term Investment - - 1,936,548 - -
Due from Associate Companies 208,401,287 270,767,453 245,649,836 239,919,795 231,456,525
Other Receivables 3,546,955 3,546,955 6,366,562 3,598,956 3,609,648
Cash & cash equivalents 20,615,126 9,224,122 11,123,316 34,006,895 14,871,227
Total Assets 1,542,929,078 1,586,740,176 1,869,616,264 2,161,089,717 2,597,155,749

Share Capital 169,400,000 169,400,000 338,800,000 338,800,000 338,800,000
Share Premium - 84,700,000 84,700,000 84,700,000
Reserve & Surplus 61,886,234 105,328,165 101,296,660 83,903,678 61,881,968
General Reserve 26,000,000 26,000,000 26,000,000 26,000,000
Retained Earnings 35,886,234 79,328,165 75,296,660 57,903,678
Non Current Liabilities 24,531,649 17,622,888 209,920,345 580,738,297 509,007,828

Term Loan & Lease Finance 4,684,613 2,076,106 196,365,784 562,710,084 490,068,622
Defferred Income Tax 9,610,216 2,914,766 (849,089) (941,573) (497,813)
Provision for Employees Retrail Gratuity 10,236,820 12,632,016 14,403,650 18,969,786 19,437,019
Current Liabilities and Provisions 1,287,111,195 1,294,389,124 1,134,899,259 1,072,947,741 1,602,765,953
Current portion of Term Loan & Lease
208,799,388 268,634,799 147,623,815 5,713,252 101,769,739
Finance
36,868,214 20,947,632 17,850,125 17,836,805 17,836,805
Debenture
Creditors & Accruals 472,933,319 424,862,571 260,318,151 149,223,805 242,613,903
Provision for Income Tax - - 4,241,131 9,705,976 13,806,659
Provision for WPP & WF - - 1,396,166 1,172,782 890,158
Short Term Loan 436,824,743 458,782,466 643,404,171 789,901,732 1,114,111,406
Due to Associated Company 110,089,676 112,364,574 45,090,702 71,492,643 57,720,441
Unclaimed Dividend 4,655,855 8,797,082 14,974,998 27,900,746 54,016,842
Proposed Dividend 16,940,000 - - -
1,311,642,844 1,312,012,012 1,344,819,604 1,653,686,038 2,111,773,781

Total Owners Equity & Liabilities 1,542,929,078 1,586,740,177 1,869,616,264 2,161,089,716 2,597,155,749
- (1) - 1 -
No. Of share 16,940,000 16,940,000 33,880,000 33,880,000 33,880,000

- (1) - 1 -
Aramit Cement
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

Particulars
Revenue 1,102,097,948 871,405,186 623,698,928 863,484,320 1,573,923,703

Costs of Sales (887,508,909) (676,480,549) (474,236,537) (629,451,005) (1,180,604,430)
Gross Profit 214,589,039 194,924,637 149,462,391 234,033,315 393,319,273
Operating Expenses:
General & Admin Expenses (21,743,412) (24,362,408) (24,163,427) (32,406,272) (49,425,897)
Selling & Distribution expenses (29,685,255) (30,564,801) (22,864,973) (34,833,747) (64,429,752)
Trading Profit 163,160,372 139,997,428 102,433,991 166,793,296 279,463,624
Financial Expenses (102,054,767) (97,651,929) (105,664,296) (149,242,457) (254,362,874)
Profit before Other Income 61,105,605 42,345,499 (3,230,305) 17,550,839 25,100,750
Other Operating Income 12,977,836 14,579,082 19,764,929 5,459,034 15,175,158
Net Profit Before WPP & WF 74,083,441 56,924,581 16,534,624 23,009,873 40,275,908
Contribution in WPPF (3,704,172) (2,846,229) (826,731) (1,150,494) (2,013,796)
Profit Before Tax 70,379,269 54,078,352 15,707,893 21,859,379 38,262,112
Provision for Tax (19,126,683) (10,636,421) (477,276) (5,372,361) (9,916,804)
Current Tax (21,540,668) (17,331,871) (4,241,131) (5,464,845) (9,565,528)
Deffered Tax 2,413,985 6,695,450 3,763,855 92,484 (351,276)
Unappropriated Profit/Liss brought

- - 79,328,165 75,296,660 -
forward
Net Profit/Loss Available for
51,252,586 43,441,931 94,558,782 91,783,678 28,345,308
Appropriation
The number of shares
EBIT 172,434,036 151,730,281 121,372,189 171,101,836 292,624,986
Effective Tax Rate (37) (24) (3) (33) (35)

Statement of Cash Flows
Aramit Cement
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

Particulars
Cash Flow From Operating Activities

Cash received from customers 1,060,419,544 872,043,363 583,485,857 689,549,545 1,046,558,144
Payment to suppliers (788,382,810) (680,798,540) (829,057,525) (858,098,625) (1,331,752,148)
Payment for WPP & WF - - (2,981,060) (1,396,165) (2,568,947)
Income Tax Paid (47,921,916) (22,752,165) - - -
Net Cash Flow from Operating Actvities 224,114,818 168,492,658 (248,552,728) (169,945,245) (287,762,951)
Cash Flow From Investing Activities

Investment (3,782,500) - (32,750,000) - -
Short Term Investment - - (187,859) 1,936,548 1,936,548
Due from Associate Co. - - 25,117,617 5,730,042 14,193,312

Interest Earned 12,977,836 14,579,082 19,764,929 5,459,034 15,175,158
Net Cash Flow from Investing Activities (113,151,816) (72,605,736) (89,942,030) (68,174,386) (156,580,524)
Cash Flow From Financing Activities

Share Capital - 169,400,000 - -
Share Premium - 84,700,000 - -
Due to Assiciated Co. (38,785,191) (60,091,268) (67,273,872) 26,401,941 12,629,739
Short Term Loan (20,871,728) 21,957,723 243,401,207 146,497,561 470,707,235
Long Term Loan & Lease Finance 68,727,568 57,226,904 14,499,193 224,433,737 247,848,762
Dividends Paid - (12,798,773) 6,177,916 12,925,748 (28,718,156)
Interest Paid on Short Term Loan (99,915,503) (97,190,435) (105,664,296) (149,242,457) (254,362,874)
Redeemable Debenture (10,250,525) (15,920,582) (3,097,507) (13,320) (13,320)
Interest on Debenture (2,139,264) (461,494) - - -
Net Cash Flow Financing Activities (103,234,643) (107,277,925) 342,142,641 261,003,210 448,091,386
Increase/(decrease) in Cash 7,728,359 (11,391,003) 3,647,883 22,883,579 3,747,911

Cash at the begning of the period 12,886,766 20,615,126 7,475,433 11,123,316 11,123,316
Cash at the end of the period 20,615,125 9,224,123 11,123,316 34,006,895 14,871,227
Net Operating Cash Flow 7.33 4.21 (11.80) (5.02) (8.49)

Conclusion
In above analysis we can interprete that M I Cement Ltd. In in good position comparing to Aramit
Cement Ltd. Aramit cement is overlevered firm. They may go equity financing if fund is required.
There operating income should be increased.
References:
19
01. Annual report of M I Cement Ltd.
02. Annual Report of Aramit Cement Ltd.
03. dsebd.org
04. stockbd.org
05. Internet
20
Capital Structure
M I Cement
Capital Structure 2012 2013 2014 2015 2016

Debt 3,448,242,178 3,437,936,724 4,633,191,382 5,127,781,531 5,676,815,876
Long Term Debt 1,811,139,113 1,451,551,878 946,349,388 426,932,519 129,371,414
1,637,103,065 1,986,384,846 3,686,841,994 4,700,849,012 5,547,444,462
Short Term Debt 1,351,027,065 1,486,345,228 3,143,054,994 4,142,616,763 5,064,048,878
Over Draft - - - - -

Share Capital 1,350,000,000 1,485,000,000 1,485,000,000 1,485,000,000 1,485,000,000
Share Premium 2,956,560,000 2,956,560,000 2,956,560,000 2,956,560,000 2,956,560,000
Total Capital 8,849,118,416 9,032,337,078 10,308,602,388 11,007,111,179 12,401,639,731
Total Asset 9,921,478,513 9,783,395,912 11,347,005,462 12,061,702,982 14,159,618,877

1.0 % of Debt & Equity in Capital Structure

Debt 38.97% 38.06% 44.94% 46.59% 45.77%
Long Term Debt 20.47% 16.07% 9.18% 3.88% 1.04%
Short Term Debt 18.50% 21.99% 35.76% 42.71% 44.73%
Equity 61.03% 61.94% 55.06% 53.41% 54.23%
70.00%
60.00%
50.00%
40.00%
Debt
30.00% Equity
20.00%
10.00%
0.00%
2012 2013 2014 2015 2016
Here, debt is increased year by year. Long Term debt was decresing and short term debt was increasing year to year to cover the
operating capital. It is almost 50% debt & Equity. If debt will increase near future the total cost of debt will increase and company
will face financial risk.
2.0 Debt Ratio Total Debt/Total Asset

% of Total Debt to total asset 34.76% 35.14% 40.83% 42.51% 40.09%
2.01 Debt absorption Capacity

3.0 Debt to Equity Ratio Total Debt/Total Equity
% of Debt to total equity 63.85% 61.45% 81.64% 87.22% 84.42%
Cost of Debt 202,592,548 350,531,177 387,929,150 399,279,044 466,891,015

5.88% 10.20% 8.37% 7.79% 8.22%
Cost of Equity 145,639,269 467,274,343 592,345,168 437,946,655 368,241,289
2.70% 8.35% 10.44% 7.45% 5.48%
12.00%
10.20% 10.44%
10.00%
8.35% 8.37% 8.22%
8.00% 7.79%
7.45%
5.88% Cost of Debt

6.00% 5.48%
Cost of Equity
4.00%
2.70%
2.00%
0.00%
2012 2013 2014 2015 2016
Here, Cost of Debt is higher than the cost of equity. If debt increase the cost of debt will higher & will be burden to company for
repayment.
4.0 Debt to Equity Ratio 0.8370 0.7488 0.9993 1.0515 1.1056

(Total Liabilities/Total Equity)
Here,
Total Equity 5,400,876,238 5,594,400,354 5,675,411,007 5,879,329,648 6,724,823,855
The debt to equity ratio is a financial, liquidity ratio that compares a company's total debt to total equity. The debt to equity ratio
shows the percentage of company financing that comes from creditors and investors. A higher debt to equity ratio indicates that
more creditor financing (bank loans) is used than investor financing (shareholders)
Analysis
A debt to equity ratio of 1 would mean that investors and creditors have an equal stake in the business assets.
A lower debt to equity ratio usually implies a more financially stable business. Companies with a higher debt to equity ratio are
considered more risky to creditors and investors than companies with a lower ratio. Unlike equity financing, debt must be repaid to
the lender. Since debt financing also requires debt servicing or regular interest payments, debt can be a far more expensive form of
financing than equity financing. Companies leveraging large amounts of debt might not be able to make the payments.
Here,Total liabilities increases over equity in 2015 to 2016 and gradually increasing.
5.0 Debt to Asset Ratios 0.34755 0.35141 0.40832 0.42513 0.40092

(Total Debt/Total Assets)
Here,
Total Debt 3,448,242,178 3,437,936,724 4,633,191,382 5,127,781,531 5,676,815,876
Total Assets 9,921,478,513 9,783,395,911 11,347,005,461 12,061,702,984 14,159,618,877
The debt to asset ratio is a leverage ratio that measures the amount of total assets that are financed by creditors instead of
investors. In other words, it shows what percentage of assets is funded by borrowing compared with the percentage of resources
that are funded by the investors.
Basically it illustrates how a company has grown and acquired its assets over time. Companies can generate investor interest to
obtain capital, produce profits to acquire its own assets, or take on debt. Obviously, the first two are preferable in most cases.
This is an important measurement because it shows how leveraged the company by looking at how much of company’s resources
are owned by the shareholders in the form of equity and creditors in the form of debt. Both investors and creditors use this figure
to make decisions about the company.
Investors want to make sure the company is solvent, has enough cash to meet its current obligations, and successful enough to pay
a return on their investment. Creditors, on the other hand, want to see how much debt the company already has because they are
concerned with collateral and the ability to be repaid. If the company has already leveraged all of its assets and can barely meet its
monthly payments as it is, the lender probably won’t extend any additional credit.
Analysis
Analysts, investors, and creditors use this measurement to evaluate the overall risk of a company. Companies with a higher figure
are considered more risky to invest in and loan to because they are more leveraged. This means that a company with a higher
measurement will have to pay out a greater percentage of its profits in principle and interest payments than a company of the same
size with a lower ratio. Thus, lower is always better.
If debt to assets equals 1, it means the company has the same amount of liabilities as it has assets. This company is highly
leveraged. A company with a DTA of greater than 1 means the company has more liabilities than assets. This company is extremely
leveraged and highly risky to invest in or lend to. A company with a DTA of less than 1 shows that it has more assets than liabilities
and could pay off its obligations by selling its assets if it needed to. This is the least risky of the three companies.
Here, it seems better position of the company to pay its liabilities.
6.0 Financial Leverage Ratio 0.0110 0.0358 (0.0648) (0.0902) (0.1196)

(Net Financial Obligation/Equity)
NFO = (Net Financial Asset)-Net Financial Obligation

Here,
Financial Asset 3,507,671,391 3,638,459,518 4,265,500,831 4,597,395,276 4,872,649,083
Current Account with Sister Concerns 513,012,411 689,651,863 889,818,785 913,117,394 969,556,496
Financial Obligation 3,448,242,178 3,437,936,724 4,633,191,382 5,127,781,531 5,676,815,876

Long Term Debt 1,811,139,113 1,451,551,878 946,349,388 426,932,519 129,371,414
Short term loans 1,351,027,065 1,486,345,228 3,143,054,994 4,142,616,763 5,064,048,878
NFO 59,429,213 200,522,794 (367,690,551) (530,386,255) (804,166,793)

Total Equity 5,400,876,238 5,594,400,354 5,675,411,006 5,879,329,648 6,724,823,855
Financial leverage ratios, sometimes called equity or debt ratios, measure the value of equity in a company by analyzing its overall
debt picture. These ratios either compare debt or equity to assets as well as shares outstanding to measure the true value of the
equity in a business.
In other words, the financial leverage ratios measure the overall debt load of a company and compare it with the assets or equity.
This shows how much of the company assets belong to the shareholders rather than creditors. When shareholders own a majority
of the assets, the company is said to be less leveraged. When creditors own a majority of the assets, the company is considered
highly leveraged. All of these measurements are important for investors to understand how risky the capital structure of a company
and if it is worth investing in.
7.0 Interest Cover Ratio 4.7009 3.5136 3.2919 3.1445 3.0990

EBIT (Earning before Interest & Taxes)/Interest Expenses
EBIT 952,363,513 1,231,617,783 1,277,004,930 1,255,514,648 1,446,900,259

The interest coverage ratio is a financial ratio that measures a company’s ability to make interest payments on its debt in a timely
manner. Unlike the debt service coverage ratio, this liquidity ratio really has nothing to do with being able to make principle
payments on the debt itself. Instead, it calculates the firm’s ability to afford the interest on the debt.
Creditors and investors use this computation to understand the profitability and risk of a company. For instance, an investor is
mainly concerned about seeing his investment in the company increase in value. A large part of this appreciation is based on profits
and operational efficiencies. Thus, investors want to see that their company can pay its bills on time without having to sacrifice its
operations and profits.
A creditor, on the other hand, uses the interest coverage ratio to identify whether a company is able to support additional debt. If a
company can’t afford to pay the interest on its debt, it certainly won’t be able to afford to pay the principle payments. Thus,
creditors use this formula to calculate the risk involved in lending.
Analysis
Analyzing a coverage ratio can be tricky because it depends largely on how much risky the creditor or investor is willing to take.
Depending on the desired risk limits, a bank might be more comfortable with a number than another. The basics of this
measurement don’t change, however.
If the computation is less than 1, it means the company isn’t making enough money to pay its interest payments. Forget paying back
the principle payments on the debt. A company with a calculation less than 1 can’t even pay the interest on its debt. This type of
company is beyond risky and probably would never get bank financing.
If the coverage equation equals 1, it means the company makes just enough money to pay its interest. This situation isn’t much
better than the last one because the company still can’t afford to make the principle payments. It can only cover the interest on the
current debt when it comes due.
If the coverage measurement is above 1, it means that the company is making more than enough money to pay its interest
obligations with some extra earnings left over to make the principle payments. Most creditors look for coverage to be at least 1.5
before they will make any loans. In other words, banks want to be sure a company make at least 1.5 times the amount of their
current interest payments.
Here, Company may provide its interest frequently because operating income is in more than 1 but operating income decreasing.
8.0 Debt Service Ratio 0.26 0.33 0.25 0.23 0.24

EBIT/Interest + Principal

Principal 3,448,242,178 3,437,936,724 4,633,191,382 5,127,781,531 5,676,815,876
EBIT 952,363,513 1,231,617,783 1,277,004,930 1,255,514,648 1,446,900,259
The debt service coverage ratio is a financial ratio that measures a company's ability to service its current debts by comparing its net
operating income with its total debt service obligations. In other words, this ratio compares a company's available cash with its
current interest, principle, and sinking fund obligations.
The debt service coverage ratio is important to both creditors and investors, but creditors most often analyze it. Since this ratio
measures a firm's ability to make its current debt obligations, current and future creditors are particularly interest in it.
Analysis
The debt service coverage ratio measures a firm's ability to maintain its current debt levels. This is why a higher ratio is always more
favorable than a lower ratio. A higher ratio indicates that there is more income available to pay for debt servicing.
For example, if a company had a ratio of 1, that would mean that the company's net operating profits equals its debt service
obligations. In other words, the company generates just enough revenues to pay for its debt servicing. A ratio of less than one
means that the company doesn't generate enough operating profits to pay its debt service and must use some of its savings.
Generally, companies with higher service ratios tend to have more cash and are better able to pay their debt obligations on time.
Company is in better position to recover the debt.
9.0 Cash Flow Coverage Ratio 0.07 0.27 0.03 0.22 0.28
(Total Operating Cash flow/Total Debts
Here,
Total Operating Cash flows 233,558,290 937,062,975 119,987,162 1,134,272,933 1,586,197,717
Total Debt 3,448,242,178 3,437,936,724 4,633,191,382 5,127,781,531 5,676,815,876
The cash flow coverage ratio is an indicator of the ability of a company to pay interest and principal amounts when they become
due. This ratio tells the number of times the financial obligations of a company are covered by its earnings. A ratio equal to one or
more than one means that the company is in good financial health and it can meet its financial obligations through the cash
generated by operating activities. A ratio of less than one is an indicator of bankruptcy of the company within two years if it fails to
improve its financial position.
It is les than 1, but company repay its long term debt frequently. Company reduces their dividend year by year for covering the debt.
10.0 Net Tangible Asset Ratio 0.54 0.57 0.50 0.49 0.47
Tangible Common Equity Ratio = (Total Shareholder's Equity - Total Intangible Assets - Preferred Stock) / (Total Assets - Total
Intangible Assets)
Here,
Total Shareholder's Equity 5,400,876,238 5,594,400,354 5,675,411,006 5,879,329,648 6,724,823,855
Total Intangible Assets - - - - -
Preferred Stock - - - - -
Total Assets 9,921,478,513 9,783,395,911 11,347,005,461 12,061,702,984 14,159,618,877
Total Intangible Assets - - - - -
The net tangible assets ratio shows the actual amount of tangible assets for each ordinary share of the company, and indicates the
worth of each share in a company in the eventuality of liquidating all assets, and paying off all debts.
11.0 Book Value Per Share 40.01 37.67 38.22 39.59 45.29
(Total Shareholder' Equity/Total Outstanding Share)

The book value per share may be used by some investors to determine the equity in a company relative to the market value of the
company, which is the price of its stock. For example, a company that is currently trading for $20 but has a book value of $10 is
selling at twice its equity. This example is referred to as price to book value (P/B), in which book value per share is used in the
denominator. In contrast to book value, the market price reflects the future growth potential of the company.
Book value per share is also used in the return on equity formula, or ROE formula, when calculating on a per share basis. ROE is net
income divided by stockholder's equity. Net income on a per share basis is referred to as EPS, or earnings per share. As shown at the
top of this page, book value per share is expressing stockholder's equity on a per share basis.
12.0 Market Value Pershare 10,125,000,000 11,434,500,000 13,959,000,000

(Total Out standing Share*Market Price per share)
Total Out standing Share 135,000,000 148,500,000 148,500,000

Market Price per share 75 77 94
(30 June 2015) (30 June 2016) (18 June 2017)
13.0 P/E Ratio 28.81 20.20 18.94 17.39 14.95

01. Tangibility Ratio
Tangible Asset (PPE)/Total Asset
2012 2013 2014

PPE 4,135,527,540 4,175,044,571 4,018,304,669
Total Asset 9,921,478,513 9,783,395,911 11,347,005,461
Tangibility Ratio 41.68% 42.67% 35.41%
Tangibility Ratio
45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2012 2013 2014 2015 20
02. Asset Growth

ROE*(1-Dividend Payout Ratio)
2012 2013 2014

Net Income 565,760,597 665,368,660 674,389,464
Shareholder's Equity 5,400,876,238 5,594,400,354 5,675,411,006
Dividend Paid (Cash) 35% 40% 30%

ROE 10% 12% 12%
(1-Dividend Payout Ratio) 65% 60% 70%
Asset Growth 7% 7% 8%
Asset Growth
10%
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
2012 2013 2014 2015 201
5%
4%
3%
2%
1%
0%
2012 2013 2014 2015 201
03. Profitability
Operating return/Total Asset
2012 2013 2014
Operating return 574,892,238 822,467,018 937,104,713
Total Asset 9,921,478,513 9,783,395,911 11,347,005,461
Profitability 6% 8% 8%
Profitability
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
2012 2013 2014 2015 20
04. Financial Slak

Financial Asset/Total Asset
2012 2013 2014
Financial Asset 2,994,658,980 2,948,807,655 3,375,682,046
Investment in Marketable Securities (AFS) 119,994,078 127,829,293 177,647,369
Cash and Cash Equivalents 2,902,952,909 2,855,126,848 3,237,987,890
Operating Cash (Assume 0.5% on Turnover) 28,288,007 34,148,486 39,953,213
Financial Cash and Cash Equivalents 2,874,664,902 2,820,978,362 3,198,034,677
Total Asset 9,921,478,513 9,783,395,911 11,347,005,461
Financial Slak 30% 30% 30%
Profitability
31%
30%
29%
28%
27%
26%
2012 2013 2014 2015 20
05. Ownership of Company
The Ownership details are as follows: (As on 30 June 2016)
Sponsor/Director 67.08%
Govt. 0.00% Sponsor/
0.67% 17.62% Director
Institution 14.63%
Foreign 0.67% Govt.
Public 17.62% 14.63% Institution
100% 67.08% Foreign
Public
This indicate that company's most ownership were contained by sponsors/directors, so there may have chance to
influence on future dividends due to ownership.
07. Company Age
08. Moving Average 2012 2013 2014

EBIT 749,770,965 881,086,605 889,075,780
Moving Average of EBIT 839,977,783.33
Mean of EBIT
SD of EBIT
CV of EBIT
2015 2016
4,210,152,070 5,416,696,077
12,061,702,984 14,159,618,877
34.91% 38.25%
2015 2016
2015 2016
648,850,994 744,247,825
5,879,329,648 6,724,823,855
25% 20%
11% 11%
75% 80%
8% 9%
wth
2015 2016
2015 2016
2015 2016
984,673,291 1,196,135,443
12,061,702,984 14,159,618,877
8% 8%
ity
2015 2016
2015 2016
3,684,277,882 3,903,092,587
223,182,815 264,839,216
3,502,416,272 3,683,336,114
41,321,205 45,082,743
3,461,095,067 3,638,253,371
12,061,702,984 14,159,618,877
31% 28%
ity
2015 2016
Sponsor/
Director
Govt.
Institution
67.08% Foreign
Public
ere may have chance to
2015 2016 2017 2018

856,235,604 980,009,244 1,180,009,244 1,239,009,706.20
875465996.3333 908440209.3333 1005418030.67 1133009398.06667
226,601,879.61
118237796.162502
0.52
M I Cement
As at 30 June
In Million
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

Partculars
Asset
Non Current Asset 4,136 4,175 4,018 4,210 5,417
Property Plant & Equipment 2,770 4,083 3,927 4,204 4,951
Capital Work in Progress 1,365 92 91 7 465
Investments in Associates 26 36 58 97 134
Current Asset 5,759 5,572 7,271 7,755 8,609
Investment in Share 93 92 120 126 131
Inventories 442 433 627 722 798
Trade receivables 754 668 1,169 1,170 1,065
Current Account with Sister Concerns 513 690 890 913 970
Other receivables 61 109 57 54 75
Advance, Seposits & Prepayments 275 231 346 368 730
Advance Income Tax 717 495 824 899 1,157
Cash & cash equivalents 2,903 2,855 3,238 3,502 3,683
Total Assets 9,921 9,783 11,347 12,062 14,160
Shareholder's Equity 5,401 5,594 5,675 5,879 6,725

Share Capital 1,350 1,485 1,485 1,485 1,485
Share Premium 2,957 2,957 2,957 2,957 2,957
Retained Earnings 872 932 1,015 1,221 1,596
Revaluation Reserve 222 220 219 217 687
Non Current Liabilities 1,969 1,694 1,278 838 714
Long Term Borrowing net off current
1,811 1,452 946 427 129
Maturity
Deferred liability-Gratuity 10 14 44 351 80
Defferred Tax Liabilities 148 228 288 60 504
Current Liabilities and Provisions 2,551 2,495 4,393 5,344 6,721
Trade Payables 149 137 108 126 350
Other payables 47 65 135 150 270
Current portion of long term debt 286 500 544 558 483
Short term loans 1,351 1,486 3,143 4,143 5,064
Provisions for tax liabilities 663 241 395 292 470
Liabilities for WPPF 37 44 44 43 49
Payable to IPO Applicants 13 13 13 13 13
Unclaimed Dividend 4 10 11 19 22
Total Owners Equity & Liabilities 9,921 9,783 11,347 12,062 14,160
Divided by 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000

- - - - -
M I Cement
In Million
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

Particulars
Revenue 5,658 6,830 7,991 8,264 9,017

Costs of Sales (4,911) (5,731) (6,732) (6,851) (7,357)
Gross Profit 746 1,099 1,259 1,414 1,659
Other Operating Income 64 36 23 23 40
Administrative expenses (89) (112) (114) (157) (150)
Selling & Distribution expenses (146) (200) (231) (295) (353)
Operating Profit 575 822 937 985 1,196
Non Operating Income 28 19 41 7 34
Financial Income/(Expenses) 178 75 (66) (132) (238)
Share of profit/ (loss) in 9 37
Associate 6 22 39
787 925 934 899 1,029
Contribution to Wppf Funds (37) (44) (44) (43) (49)
Profit Before Tax 750 881 889 856 980
Income Tax Expenses (184) (216) (215) (207) (236)

Current Tax (135) -134.882516 (155) (143) (178)
Deffered Tax (49) (81) (60) (64) (58)
Net Profit After Tax 566 665 674 649 744
The number of shares 135 149 149 149 149
EBIT 952,363,513 1,231,617,783 1,277,004,930 1,255,514,648 1,446,900,259
Divided by 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000

Time Series Analysis
M I Cement Industry Ltd.
Particulars 2011 2012 2013 2014 2015 2016

Sales Revenue 4,022,271,063 5,657,601,485 6,829,697,132 7,990,642,611 8,264,240,985 9,016,548,629
Sales Growth Rate 40.66 20.72 17.00 3.42 9.10
GP 13.19 16.08 15.75 17.11 18.40
Financial Expenses 92,430,813 202,592,548 350,531,177 387,929,150 399,279,044 466,891,015
% Change of FE 119.18 73.02 10.67 2.93 16.93
Net Operating Cash
(88,276,762) 233,558,290 937,062,975 119,987,162 1,134,272,933 1,586,197,717
Flow
% Change 364.58 301.21 (87.20) 845.33 39.84
Non Current Asset
135,882,724 792,840,884 254,215,090 129,387,859 576,148,074 720,328,318
Purchases
% Change 483.47 (67.94) (49.10) 345.29 25.02
Short Term Loan
445,423,724 743,150,871 135,318,163 1,656,709,767 999,561,769 921,432,115
Taken
% Change 66.84 (81.79) 1,124.31 (39.67) (7.82)
EPS 3.23 3.81 4.48 4.54 4.37 5.01
% Change 17.96 17.59 1.34 (3.74) 14.65
Index Mkt Return (RM) MI Cem PriMonthly Ret
Jan 5500 72
Feb 5550 0.0090909090909 75 0.0416666667
Mar 5320 -0.041441441441 80 0.0666666667
Apr 5400 0.015037593985 820 9.25
May 5250 -0.027777777778 85 -0.896341463
Jun 5180 -0.013333333333 88 0.0352941176
2014
Jul 5300 0.023166023166 92 0.0454545455
Aug 5300 0 89 -0.032608696
Sep 5200 -0.018867924528 87 -0.02247191
Oct 5100 -0.019230769231 86 -0.011494253
Nov 5300 0.0392156862745 85 -0.011627907
Dec 5240 -0.011320754717 88 0.0352941176
Jan 5150 -0.017175572519 87 -0.011363636
Feb 5050 -0.019417475728 84 -0.034482759
Mar 5100 0.009900990099 89 0.0595238095
Apr 5200 0.0196078431373 90 0.0112359551
May 5150 -0.009615384615 82 -0.088888889
Jun 5200 0.0097087378641 78 -0.048780488
2015
Jul 5100 -0.019230769231 79 0.0128205128
Aug 5050 -0.009803921569 81 0.0253164557
Sep 5000 -0.009900990099 82 0.012345679
Oct 5100 0.02 88 0.0731707317
Nov 5105 0.0009803921569 85 -0.034090909
Dec 5200 0.0186092066601 86 0.0117647059
jan 5220 0.0038461538462 87 0.011627907
feb 5250 0.0057471264368 88 0.0114942529
mar 5280 0.0057142857143 82 -0.068181818
apr 5300 0.0037878787879 81 -0.012195122
may 5250 -0.009433962264 80 -0.012345679
jun 5300 0.0095238095238 78 -0.025
2016
jul 5320 0.0037735849057 77 -0.012820513
aug 5350 0.0056390977444 75 -0.025974026
sep 5200 -0.028037383178 78 0.04
oct 5150 -0.009615384615 79 0.0128205128
nov 5250 0.0194174757282 82 0.0379746835
dec 5300 0.0095238095238 82 0
RF 5.7
RM -0.010941
B 0.002034
RE 5.688383
1. Beta Adjust???
2. Mkt Return AM or GM ????
Bonus
Index MI Cash share Dividend Capital
Year Month Data Cement Dividend Adjustme Yield Gain
Ltd Info
nt
January 4,136.31 81.8 0
February 3,973.28 83.7 0 0.00% 2.32%
March 3,590.05 71.3 0 0.00% -14.81%
April 3,438.90 63.4 0 0.00% -11.08%
May 3,878.07 77.5 0 0.00% 22.24%
June 4,104.65 90.5 0 0.00% 16.77%
2013
July 3,940.81 89 0 0.00% -1.66%
August 4,127.48 97.1 0 0.00% 9.10%
September 3,937.68 90.6 0 0.00% -6.69%
October 3,967.73 89.7 0 0.00% -0.99%
November 4,230.73 82.6 4 0 4.46% -7.92%
December 4,266.55 78.2 0 0.00% -5.33%
January 4,753.17 88 0 0.00% 12.53%
February 4,749.87 87.2 0 0.00% -0.91%
March 4,491.98 84.1 0 0.00% -3.56%
April 4,566.86 89.7 0 0.00% 6.66%
May 4,430.48 85.7 0 0.00% -4.46%
June 4,480.52 86 0 0.00% 0.35%
2014
July 4,427.16 83.3 0 0.00% -3.14%
August 4,549.52 83.9 0 0.00% 0.72%
September 5,074.31 84.3 0 0.00% 0.48%
October 5,173.23 84.9 0 0.00% 0.71%
November 4,769.43 75.6 3 0 3.53% -10.95%
December 4,864.96 72.2 0 0.00% -4.50%
January 4,724.05 68.6 0 0.00% -4.99%
February 4,624.95 66.7 0 0.00% -2.77%
March 4,530.48 66.3 0 0.00% -0.60%
April 4,047.29 68 0 0.00% 2.56%
May 4,586.95 78.3 0 0.00% 15.15%
June 4,583.11 76 0 0.00% -2.94%
2015
July 4,792.31 77.3 0 0.00% 1.71%
August 4,768.67 77.5 0 0.00% 0.26%
September 4,852.08 79.8 0 0.00% 2.97%
October 4,564.49 74.7 0 0.00% -6.39%
November 4,581.00 82.9 2.5 0 3.35% 10.98%
December 4,629.64 85.4 0 0.00% 3.02%
January 4,540.89 76.3 0 0.00% -10.66%
February 4,511.97 77.9 0 0.00% 2.10%
March 4,357.54 76.8 0 0.00% -1.41%
April 4,195.70 76.4 0 0.00% -0.52%
May 4,419.39 76.1 0 0.00% -0.39%
June 4,507.58 74.9 0 0.00% -1.58%
2016
July 4,525.35 75.8 0 0.00% 1.20%
August 4,526.58 76.7 0 0.00% 1.19%
September 4,695.19 76.2 0 0.00% -0.65%
October 4,592.18 78.9 0 0.00% 3.54%
November 4,801.24 75.2 2 0 2.53% -4.69%
December 5,036.05 82.5 0 0.00% 9.71%
January 5,468.34 83.9 0 0.00% 1.70%
February 5,612.70 84.3 0 0.00% 0.48%
March 5,719.61 102.3 0 0.00% 21.35%
April 5,475.55 99.1 0 0.00% -3.13%
May 5,656.05 91.2 0 0.00% -7.97%
2017 June 5,403.12 93.3 0 0.00% 2.30%
Risk-free rate 5.700% 5.700%
Rm - Market return monthly 0.637% 0.0050537

Rm - Annualized market return 7.643% 0.0606447
COV (Rm, Ri) 0.0022

VAR (Rm) 0.0027
Beta 0.81
Adjusted Beta 0.87
Ke - CAPM 7.40%
B 0.82819905
MI Market
Cement Return
Return (RM)
2.32% -3.94%
-14.81% -9.65%
-11.08% -4.21%
22.24% 12.77%
16.77% 5.84%
-1.66% -3.99%
9.10% 4.74%
-6.69% -4.60%
-0.99% 0.76%
-3.46% 6.63%
-5.33% 0.85%
12.53% 11.41%
-0.91% -0.07%
-3.56% -5.43%
6.66% 1.67%
-4.46% -2.99%
0.35% 1.13%
-3.14% -1.19%
0.72% 2.76%
0.48% 11.54%
0.71% 1.95%
-7.42% -7.81%
-4.50% 2.00%
-4.99% -2.90%
-2.77% -2.10%
-0.60% -2.04%
2.56% -10.67%
15.15% 13.33%
-2.94% -0.08%
1.71% 4.56%
0.26% -0.49%
2.97% 1.75%
-6.39% -5.93%
14.32% 0.36%
3.02% 1.06%
-10.66% -1.92%
2.10% -0.64%
-1.41% -3.42%
-0.52% -3.71%
-0.39% 5.33%
-1.58% 2.00%
1.20% 0.39%
1.19% 0.03%
-0.65% 3.72%
3.54% -2.19%
-2.15% 4.55%
9.71% 4.89%
1.70% 8.58%
0.48% 2.64%
21.35% 1.90%
-3.13% -4.27%
-7.97% 3.30%
2.30% -4.47% 0.505%
MI
Required Return =
0.00807996934351
Market
Return =
Risk Free Rate = .05
Individual Beta =
0.83840061313
0.0419205
Re = Rf+(Rm-Rf)*B
0.00808 = .05+(RM-.05)*.8384
Aramit
Required
Return =
0.015389
2741026
Market
Return =
Risk Free
Rate
= .05
Individual
Beta =
0.692214
517947
uired Return =
807996934351
Free Rate = .05

ividual Beta =
83840061313

M. Corporate Finance

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M. Corporate Finance

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A Report on Corporate Finance

Topics: “Comparative Study on Capital Structure & Dividend policy analysis of M I

M I Cement Industry - Target Company

Submitted To: Dr. Mahmud Osman Imam

Submitted By: Chandan Kanti Nath

Date of Submission: December 26, 2017.

Sl No. Particulars Page Ref.

Objectives of the report

% of Debt & Equity in Capital Structure Annexure-1

61.03% 61.94% 0.9

01.00 Debt Ratio Total Debt/Total Asset Annexure-2

% of Total Debt to total asset 2012 2013 2014 2015 2016

Aramit Cement 44.54% 47.29% 53.77% 63.68% 66.37%

Industry Debt Ratio 28.28% 22.89% 26.53% 27.17% 26.50%

% of Debt to total equity 2012 2013 2014 2015 2016

Aramit Cement 297.11% 273.16% 191.55% 271.22% 355.14%

Industry Debt Ratio 53.04% 40.30% 48.45% 51.05% 50.57%

2012 2013 2014 2015 2016

M I Cement 0.0110 0.0358 (0.0648) (0.0902) (0.1196)

NFO (439,809,956) (469,256,217) (1,233,746,062) (1,419,694,525) (1,747,057,227)

Aramit Cement (1.9754) (1.7036) (1.3531) (2.1029) (2.9787)

NFO (NFA-NFL) (456,888,535) (468,023,954) (710,120,190) (1,067,020,105) (1,445,795,939)

2012 2013 2014 2015 2016

Interest Cover Ratio 1.6896 1.5538 1.1487 1.1465 1.1504

EBIT 172,434,036 151,730,281 121,372,189 171,101,836 195,083,324

2012 2013 2014 2015 2016

M I Cement 0.2609 0.3251 0.2543 0.2272 0.2355

0.1093 0.1122 0.1030

Fig: Debt Service Ratio

2012 2013 2014 2015 2016

0.0500 0.0424 M I Cement

Fig: Cash Flow Coverage Ratio

2012 2013 2014 2015 2016

Aramit Cement 15% 13% 11% 11% 10%

Weighted Average Cost of Capital (WACC)

2012 2013 2014 2015 2016

MI Cement 41.68% 42.67% 35.41% 34.91% 38.25%

25.00% 25.00% 30.00% 40.00%

Fig: Tangibility ratio of M I Cement & Aramit Cement

Read more: Growth Company https://www.investopedia.com/terms/g/growthcompany.asp#ixzz52GELMCED

2012 2013 2014 2015 2016

12.00% 45.00% 4.50% 70.00%

2012 2013 2014 2015 2016

M I Cement 7.70% 9.17% 9.78% 9.80% 10.19%

Fig: return on Net Operating Asset

2012 2013 2014 2015 2016

40.00% 10.00 70.00%

2012 2013 2014 2015 2016

M I Cement 35.35% 37.19% 37.59% 38.12% 34.41%

36.00% 25.00% 12.00%

2012 2013 2014 2015 2016

2012 2013 2014 2015 2016

2012 2013 2014 2015 2016

M I Cement 13,328,550,000 13,439,250,000 12,771,000,000 11,286,000,000 11,122,650,000

0.95 43.00% 0.50 70.00%

MJLBDL (Target Co.) 45%C 45%C, 5%B 45% C 60%C,10%B ..

Rescaling of Dividend and EPS of M I Cement:

Stoc Shares / Restate Restate

Justification Of Dividend Behavior

Information Of MJLBDL (Target Co.) at a Glance:

Cash dividend per share 45% 45% 45% 45% 60%

Cash dividend per share 130% 130% 110% 100% 100%

Ownership of Company M I Cement Aramit Cem

The Ownership details are as follows: 2016 2016