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Fauji cement corporation

For project I have selected this company because I found it easy to analyze the data
of faugi carporation because it is the Pakistan most famous cement industry used
by most of the construction department of Pakistan fauji has a wide verity of
products and cement department faugi corporation is one of the famous product so
I consider studing the product more easy them other products

Introduction of the fauji cement corporation

Fauji Cement Company Limited, headquartered in Rawalpindi, operates a cement


plant at Jhang Bahtar, Tehsil Fateh Jang, District Attock in the province of Punjab.
The company has a strong and longstanding tradition of service, reliability, and
quality that reaches back more than 19 years. Sponsored by Fauji Foundation, the
company was incorporated in Rawalpindi in 1992.
Fuji Cement is operating two lines of cement plants, one each from FLS Denmark
& TKIS (Thyssen Krupp industrial solutions) Germany. The plants are well
renowned for their high efficiencies, best quality production and are well
maintained with annual total production capacity of 3.43 million tons of cement.
Fauji Cement enjoys the reputation of being the best quality cement in the country
and is preferred in the construction of mega projects like Dams, Bridges, Highways
& Motorways, Commercial & Industrial complexes, Residential Housing Societies,
and a myriad of other structures needing consistent setting time/quality and high
strength, fundamental to Pakistan’s economic vitality and quality of life. 
In addition to the Pakistan market, Fauji Cement is expanding its promising
coverage in the neighboring regions /countries like Sri Lanka, India, Afghanistan,
South Africa, Middle East & Africa. 
Recently, FCCL has initiated a Waste Heat Recovery Power Plant which will
generate power from the heat emitted into atmosphere from its cement
manufacturing operations. The project will not only support national power
requirement but will also be a value addition for sustainable environment.
Fauji Cement management has a clear vision for its social responsibility towards
the society in which it operates. With the same concept Fauji Technical Training
Institute is established in District Attock in order to equip next generation with
technical skills, a key to long term economical development of any nation.
 
Fauji Cement is ISO certified for its Quality & Environment Management
Systems and has won number of awards in its category.

Investment decision
nvestment decision refers to financial resource allocation. Investors
opt for the most suitable assets or investment opportunities based on
risk profiles, investment objectives, and return expectations.
Year 2021 Year 2020
Current assets 7,152,550 5,675,651
Non-current assets 22,224,595 23,289,531
Total assets 29,377,145 28,965,182

So from above table the values shows that how much the long
term and short term investment was there of the company
current assets are also known as Long term assets as well as
non-current assets are called as short term assets so from above
table the growth of investment are there from year 2020 to 2021
because in 2020 the long term assets was 5675651 and in 2021
the current assets was 7152550 so there was an increase in the
current assets of about 1476899 and if we talk about growth of
short term assets in 2020 the amount was 23289531 and in 2021
it was about 22224595 and the difference was there of 1064936
and same as the total assets was increased by amount of 411963
from 2020 to 2021

FINANCING DECESION
YEAR 2021 YEAR 2020
CURRENT 5,182,458 3,751,829
LIABILITY
NON-CURRENT 4,390,367 4,314,791
LIABILITY
TOTAL EQUITY 29,377,145 28,965,182
AND LIABILITY

The current liabilities of fauji fertilizer in 2021 was 5182458 and


in 2020 it was 3751829 so the increase in amount from 2020 to
2021 was 1430629 and the non-current liabilities was 4390367
in 2021 and in 2020 it was 4314791 so the rise amount from
2020 to 2021 was 75576 and The sum of EQUITY AND
LIABILITIES in 2021 was 29377145 and in 2020 it was
28965182 so the increased amount from 2020 to 2021 was
411963

ASSET MANAGEMENT DECISION


YEAR 2021 YEAR 2020
TOTAL ASSETS 29,377,145 28,965,182

TOTAL 29,377,145 28,965,182

LIABILITIES
CASH FLOW 545,109 2,025,362

FROM
INVESTING
ACTIVITIES
CASH FLOW 1,181,854 3,019,893

FROM
FINANCING
PROFIT 173,267 4,411,908

BEFORE
TEXATION

so from the above grave we can estimate the values of given


data evaluated from different financial sited of the company it
indicated the increase in the rates that is the good thing for the
corporation
Debit to equity ratio
Year 2021
Total equity. = 539014
Total debit =808964
Debit equity ratio = total debit/total equity
Debit equity ratio = 808964/539014
DEBUT EQUTI RATIO =1.500
Year 2020
Total equity. = 189537
Total debit =377946
Debit equity ratio = total debit/total equity
Debit equity ratio = 377946/189537
DEBUT EQUTI RATIO =1.99

RISK AND RETURN OF BATA PAKISTAN


year Share price Yield (y)
Year Share price Y (y-ȳ) (y-ȳ) ²
2018 20.00 -
2019 15.46 -0.2328 -0.2335 0.0545
2020 21.15 0.368 0.361 0.0013
2021 18.34 -0.133 -0.1337 0.0178

0.0022 0.07367

Y(yield) = (ending value / beginning value) – 1


Year 2018= 0
Y(yield) = (ending value / beginning value) – 1
Year 2019 = (15.46/20.75) -1 = -0.2328
Y(yield) = (ending value / beginning value) – 1
Year 2020= (21.15/15.46) -1 = 0.368
Y(yield) = (ending value / beginning value) – 1
Year 2021= (18.34/21.15) -1 = -0.133
Arithmetic Mean ȳ = ΣY/ n
Number of years on which the yield calculated n = 3
ȳ = 0.0022/3
ȳ = 0.0007
Variance
σ2(Variance) = Σ(y-ȳ) ²/ n
σ2 = 0.0007/3
σ2 = 0.024or 0%
Interpretation of Variance: In terms of Standard Deviation, the risk related to yield
of
Fauji cement COMPANY” is 51.95 %
σ (Standard Deviation) = √Σ (y-ȳ) ² / n
σ= √0.024/3
σ = 0.1549 or 15.49%
Coefficient of Variance
CV (Coefficient of Variance) = standard deviation/ mean
CV= σ/ȳ
CV=0.5195/0.0843
CV= 6.1625
Interpretation: The ratio of standard deviation to mean of “fauji COMPANY
Investment decision of fecto cement
Asset Year 2021 Year 2020
Non current asset 2735976 2145443
Current asset 3297031 2688363
Total asset 6033007 4833806

Financial decision
2021 2020
Non current liabilities 677131 155932
current liabilities 1888814 1169863
Total equity and 6033007 4833806
liabilities

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