Financial Accounting Assignment of Group-2

Jagannath University
Department of Marketing
Course Name: Financial Accounting
Course Code: MKT-2204
ASSIGNMENT ON:
Five Steel Companies Financial Report Analysis
SUBMITTED TO: SUBMITTED BY:

MD. Al Amin Group-2
Assistant Professor Department of Marketing
Submission Date: 15-10-2023
Letter of Transmittal
15-10-2023
MD. Al Amin
Jagannath University
Subject: Submission on five steel companies financial statement analysis
Sir,
With due respect, we, the undergraduate student of the Department of marketing 15th batch, have
reported on five steel companies financial statement analysis under the course: Financial
Accounting.
Though we are on a learning curve, this report has enabled us to gain insight into the core fact of
making a report on "Five steel companies. " So, it becomes an extremely challenging and
interesting experience. Thank you for your supportive consideration for formulating an idea.
Without your inspiration, this report would have been an incomplete one.
Lastly, we would be thankful once again if you please give your judicious advice on effort. We
beg your kind consideration, and it will be helpful for us if you accept the report and oblige
thereby.
Yours sincerely,
Team leader
MD. Nazmul Hasan, ID-B200204018
On behalf of the Group-2, Department of Marketing, Jagannath University
Group-2, Member Information
Name ID
Injamul Haque Joni B200204011
Maisha Jahan Mim B200204012
Mst. Sadiya Akter B200204013
Mst.Tunna Moni B200204014
Bibi Amena B200204015
MD. Jahidul Islam B200204016
Redwan Hossain Sarder B200204017
MD. Nazmul Hasan B200204018
Jannatul Ferdous Mim B200204019
Md. Abdur Rahim B200204020

Table of Contents
......................................................................................................................................................... 1
Introduction of S. Alam Steel.......................................................................................................... 1
Income Statement of S. Alam Steel ................................................................................................ 2
Financial Statement of S. Alam Steel ............................................................................................. 3
Ratio Analysis of S. Alam Cold Rolled Steels Ltd. ........................................................................ 5
Liquidity Ratio ............................................................................................................................ 5
profitability Ratio:....................................................................................................................... 6
Solvency Ratio ............................................................................................................................ 7
Introduction Of Bangladesh Steel Re-Rolling Mills Limited ......................................................... 8
Income Statement of BSRM Ltd..................................................................................................... 9
Financial Statement of BSRM Ltd................................................................................................ 10
Ratio Analysis of BSRM................................................................................................................11
Liquidity Ratio ...........................................................................................................................11
Profitability Ratio: .................................................................................................................... 12
Solvency Ratio .......................................................................................................................... 13
Introduction of GPH Ispat Limited ............................................................................................... 14
Income Statement of GPH Ispat Limited ...................................................................................... 15
Financial Statement of GPH Ispat Ltd. ......................................................................................... 16
Ratio Analysis of GPH Ispat Limited ........................................................................................... 17
Liquidity Ratio .......................................................................................................................... 17
Probability Ratio ....................................................................................................................... 18
Solvency Ratio .......................................................................................................................... 19
Introduction of S.S. Steel Ltd ....................................................................................................... 20
Income Statement of S.S Steel Ltd ............................................................................................... 21
Financial Statement of S.S Steel Ltd ............................................................................................ 22
Ratio Analysis of S.S. Steel Ltd. ................................................................................................... 23
Liquidity Ratio .......................................................................................................................... 23
Solvency Ratio .......................................................................................................................... 25
Introduction Of RSRM ................................................................................................................. 26
Income statement of RSRM .......................................................................................................... 27
Financial Statement of RSRM ...................................................................................................... 28
Ratio Analysis of RSRM Ltd ........................................................................................................ 29
Liquidity Ratio .......................................................................................................................... 29
Solvency Ratio .......................................................................................................................... 31
Overall Comparison of all Company ............................................................................................ 32
Current Ratio Analysis (year 2021-2022) ................................................................................. 32
Debt to equity ratio: .................................................................................................................. 33
Acid Test Ratio: ........................................................................................................................ 34
Return On Assets (2021-2022): ................................................................................................ 35
Profit Margin Ratio (2021-2022): ............................................................................................. 36
Recommendations ......................................................................................................................... 37
Conclusion .................................................................................................................................... 38
Reference ...................................................................................................................................... 38
Introduction of S. Alam Steel
S. Alam Cold Rolled Steels Limited (SACRSL) is a public limited company in Bangladesh,
incorporated in 2000 and started its commercial production in 2004. It is a subsidiary of S. Alam
Group, a leading diversified business conglomerate in Bangladesh. It is likely that the founder of
the S. Alam Group, Abdus Salam, was the owner of S. Alam Cold Rolled Steels Limited in the
past. The current owner of SACRSL is Mr. Abdus Samad, who is also the Chairman of the Board
of Directors.
According to SACRSL's LinkedIn profile, the company has 11-50 employees. However, it is
unclear how many of these employees are directly involved in the production of cold rolled steel.
SACRSL has a state-of-the-art cold rolling mill, which is located in Chittagong, Bangladesh. The
mill has a production capacity of 150,000 metric tons of cold rolled steel per year.
SACRSL is committed to sustainable development and environmental protection. The company
has a number of initiatives in place to reduce its environmental impact, such as using recycled
materials and renewable energy sources. SACRSL is also a member of the Bangladesh Steel and
Engineering Corporation (BSEC), which is a government agency that promotes the development
of the steel industry in Bangladesh.
Page 1 of 43
Income Statement of S. Alam Steel
Income Statement
S. Alam Cold Rolled Steels Ltd.
June 30, 2022
Account Title Amount Amount

Revenue 4761272509
(-) Cost of Sales (3993961833)
Gross Profit 767310676
(-) Operating Expenses
Selling and Distribution Expenses 836000
Office and Administrative Expenses 49143572
(49979572)
Operating Profit 717331104
(-) Non-Operating Expenses
Finance Expenses 539027172
Contribution to WP and Welfare Fund 9909218 (548936390)
168394714
(+) Non-Operating Income
Finance Income 8342866
profit income tax 176737580
(-) Income Taxes
Current year 147167022
Deferred Tax (Income/Expenses) 33113507
(114053515)
Net Profit after Tax for the year 62684065
Page 2 of 43
Financial Statement of S. Alam Steel
Balance Sheet
S. Alam Cold Rolled Steels Ltd.
June 30, 2022
Page 3 of 43
Ratio Analysis of S. Alam Cold Rolled Steels Ltd.
Ratio analysis compares line-item data from a company's financial statements to reveal insights
regarding profitability, liquidity, operational efficiency, and solvency. Ratio analysis can mark how
a company is performing over time, while comparing a company to another within the same
industry or sector.
1)Liquidity Ratio:
Liquidity ratios are a measure of the ability of a company to pay off its short-term liabilities.
Liquidity ratios determine how quickly a company can convert the assets and use them for meeting
the dues that arise. The higher the ratio, the easier is the ability to clear the debts and avoid
defaulting on payments. Common liquidity ratios include the quick ratio, current ratio, and days
sales outstanding.
2)Solvency Ratio:
A solvency ratio is a key metric used to measure an enterprise's ability to meet its long-term debt
obligations and is used often by prospective business lenders. A solvency ratio indicates whether
a company's cash flow is sufficient to meet its long-term liabilities and thus is a measure of its
financial health. There are four primary solvency ratios, including the interest coverage ratio, the
debt-to-asset ratio, the equity ratio, and the debt-to-equity ratio. Creditors and investors often use
solvency ratios to gauge the sustainability of a business before lending or investing.
3)Profitability Ratio:
Profitability ratios are a type of accounting ratio that helps in determining the financial
performance of business at the end of an accounting period. Profitability ratios show how well a
company is able to make profits from its operations. Examples of profitability ratios include gross
profit margins, return on assets, return on equity, and EBITDA.
Page 4 of 43
Ratio Analysis of S. Alam Cold Rolled Steels Ltd.
Liquidity Ratio
#Current Ratio: The current ratio describes the relationship between a company's assets and
liabilities. So, a higher ratio means the company has more assets than liabilities. For example, a
current ratio of 4 means the company could technically pay off its current liabilities four times
over.
A good current ratio is between 1.2 to 2, which means that the business has 2 times more current
assets than liabilities to cover its debts.
Items Year 2022

Current Assets 11522516765
Current Liabilities 13489777288
Current ratio 0.854
We know that A good ratio is 1.2 to 2, but the company has Tk 0.854 in current assets which
doesn’t available to cover each tk 1 of its short-term liabilities. It indicates that the company has a
weak position to cover its debts.
#Acid test ratio: In finance, the quick ratio, also known as the acid-test ratio, is a type of liquidity
ratio, which measures the ability of a company to use its near cash or quick assets to extinguish or
retire its current liabilities immediately.
Items Year 2022

Current Assets (without inventory) 4,887,822,730
Acid Ratio 0.362
Page 5 of 43
profitability Ratio:
#Return on Assets:
Return on assets is a metric that indicates a company's profitability in relation to its total assets.
ROA can be used by management, analysts, and investors to determine whether a company uses
its assets efficiently to generate a profit.
Items Year 2022

Net Profit 62684065
Total Assets 15672243955
Return on Assets 0.399%
The company generates profit 0.399% poysha for every 1 Taka in assets it holds,
#Net Profit Margin:

The net profit margin, or simply net margin, measures how much net income or profit is generated
as a percentage of revenue. It is the ratio of net profits to revenues for a company or business
segment. Net profit margin is typically expressed as a percentage but can also be represented in
decimal form.
Items Year 2022

Net Profit 62684065
Total Sale 4761272509
Profit Margin Ratio 1.31%
Here, the Net profit margin is 1.31% Taka.
Page 6 of 43
Solvency Ratio
#Debt to equity ratio:
The debt-to-equity ratio (D/E ratio) shows how much debt a company has compared to its assets.
It is found by dividing a company's total debt by total shareholder equity. A higher D/E ratio means
the company may have a harder time covering its liabilities.
Items Year 2022

Total Debt 13730922736
Total Equity 1941321219
Debt to equity ratio 7.07
Here the debt-to-equity ratio is 7.07.
Page 7 of 43
Introduction Of Bangladesh Steel Re-Rolling Mills Limited
BSRM, or Bangladesh Steel Re-Rolling Mills Limited, is the largest steel manufacturing company
in Bangladesh. It was founded in 1952 and is headquartered in Chittagong. BSRM produces a wide
range of steel products, including reinforced steel bars, structural sections, wire rods, and
galvanized wires. The company's products are used in a variety of industries, including
construction, infrastructure, and manufacturing.
BSRM is a leading player in the Bangladeshi steel industry and has played a significant role in the
country's economic development. The company has supplied steel for many of Bangladesh's most
iconic landmarks, including the Padma Bridge, Ruppur Nuclear Power Plant, and Hatirjheel
Project.
BSRM is also committed to sustainability and innovation. The company has implemented a
number of initiatives to reduce its environmental impact and improve the efficiency of its
operations. BSRM has also developed a number of new products and technologies, such as its
Xtreme500W high-strength steel bars.
BSRM is a major employer in Bangladesh and provides direct and indirect employment to over
100,000 people. The company is also a major contributor to the Bangladeshi government's tax
revenue.
Page 8 of 43
Income Statement of BSRM Ltd.
Income Statement
BSRM Ltd.
June 30, 2022
Page 9 of 43
Financial Statement of BSRM Ltd.
Balance Sheet
BSRM Ltd.
June 30, 2022
Page 10 of 43
Ratio Analysis of BSRM
Liquidity Ratio
# Current Ratio:
The current ratio measures the relationship between a company's current assets and current
liabilities, indicating its ability to cover short-term obligations with its short-term assets. A higher
current ratio indicates that the company has more current assets available to cover its current
liabilities, suggesting greater short-term financial stability.
Items Year 2022

Current Ration 0.96
We know that A good ratio is 1.2 to 2, but the company has Tk 0.96 in current assets which doesn’t
available to cover each tk 1 of its short-term liabilities. It indicates that the company has a weak
position to cover its debts.
#Acid test ratio:

Acid-test ratio (also known as quick ratio) is a measure of a company’s liquidity, which is its ability
to pay its short-term obligations using only its most liquid assets. Here, BSRM’s acid test ratio is
0.31. If the acid-test ratio is below 1, it means that a company does not have enough liquid assets
(cash or equivalents) to cover its current liabilities. This suggests that the company is not in a
financially sound position, as it cannot pay its short-term debts.
Items Year 2022

Current Assets (without Inventory) 23124994626
Current Ration 0.31
So, BSRM’s Acid ratio is .31, which is suggest that the company is not in a financially sound
position, as it cannot pay its short-term debts.
Page 11 of 43
Profitability Ratio:
#Return on Assets:
Return on assets is a metric that indicates a company's profitability in relation to its total assets.
ROA can be used by management, analysts, and investors to determine whether a company uses
its assets efficiently to generate a profit.
Items Year 2022

Net Profit 3088284803
Return on Assets 0.026
The company generates profit 2.6 tk for every 1 Taka in assets it holds,
#Net Profit Margin:

The net profit margin, or simply net margin, measures how much net income or profit is generated
as a percentage of revenue. It is the ratio of net profits to revenues for a company or business
segment. Net profit margin is typically expressed as a percentage but can also be represented in
decimal form.
Items Year 2022

Net sales 79952801290
Profit Margin 0.039
Here, the Net profit margin is 3.9% Taka.
Page 12 of 43
Solvency Ratio
#Debt to equity ratio:
The debt-to-equity ratio (D/E ratio) shows how much debt a company has compared to its assets.
It is found by dividing a company's total debt by total shareholder equity. A higher D/E ratio means
the company may have a harder time covering its liabilities.
Items Year 2022

Page 13 of 43
Introduction of GPH Ispat Limited
GPH Ispat Limited, founded in 2006, is a leading steel manufacturing company based in
Bangladesh. Specializing in the production of top-notch steel products including billets, bars, and
rods, GPH Ispat plays a pivotal role in the construction and industrial sectors. With a strong
commitment to quality control and adherence to industry standards, the company has earned a
reputation for reliability and excellence. Beyond production, GPH Ispat places a significant
emphasis on sustainability and responsible business practices, aligning with global trends. Through
its contributions to employment and its pivotal role in various construction projects, GPH Ispat
has become a key player in Bangladesh's industrial landscape, contributing to the nation's
economic growth.
Page 14 of 43
Income Statement of GPH Ispat Limited
Income Statement
GPH Ispat Ltd
June 30,2022
Page 15 of 43
Financial Statement of GPH Ispat Ltd.
Balance sheet
GPH Ispat Ltd
June 30, 202216
Page 16 of 43
Ratio Analysis of GPH Ispat Limited
Liquidity Ratio
#Current Ratio: The current ratio describes the relationship between a company's assets and
over.
Items Year 2022

Current Ratio 1.0018
doesn’t available to cover each tk 1 of its short-term liabilities. It indicates that the company has a
weak position to cover its debts.
Items Year 2022

Current Assets (Without Inventory) 14,327,357,634
Acid Ratio 0.4735
Page 17 of 43
Probability Ratio
#Return on Assets: Return on assets is a metric that indicates a company's profitability in

relation to its total assets. ROA can be used by management, analysts, and investors to determine
whether a company uses its assets efficiently to generate a profit.
Items Year 2022

Return on Asset 2.303
The company generates profit 2.303 poysha for every 1 Taka in assets it holds,
#Net Profit Margin: The net profit margin, or simply net margin, measures how much net income
or profit is generated as a percentage of revenue. It is the ratio of net profits to revenues for a
company or business segment. Net profit margin is typically expressed as a percentage but can
also be represented in decimal form.
Items Year 2022

Net Profit Margin 3.191%
Here, the Net profit margin is 3.191 Taka.
Page 18 of 43
Solvency Ratio
#Debt to equity ratio: The debt-to-equity ratio (D/E ratio) shows how much debt a company has
compared to its assets. It is found by dividing a company's total debt by total shareholders’ equity.
A higher D/E ratio means the company may have a higher time covering its liabilities. Th e formula
is = Total debt/ total equity.
Items Year 2022

Debt to equity ratio 4.16.
Page 19 of 43
Introduction of S.S. Steel Ltd
S. S. Steel Limited was started by some enthusiastic entrepreneurs in 2001 that was dedicated
solely to producing reinforcement – bars from small rolling mills.
At that time rolling mills were fed with sheared and cut plates derived from abandoned ships. Re-
bars (Rod) were produced to meet the needs for affordable steel and iron for the growing territories
and basic infrastructure in the newly formed Bangladesh. Since the inception of the company, S.
S. Steel Limited has continued to increase its capability in every aspect of the production spectrum.
At present we are expanding capacity, developing processes, and improving characteristics to
fulfill market demand and user satisfaction. Moreover, SSSL has acquired 99% Saleh Steel
Industries Limited (SSIL) in 2020 to capture the market in the uncovered geographical areas of
Bangladesh.
Page 20 of 43
Income Statement of S.S Steel Ltd
Income Statement
S.S Steel Ltd
June 30, 2022
Account Title Amount

Revenue 5040798732
Gross profit 1380828403
Other income 345253221
Administrative expense 106407601
Selling expense 76655002
Financial expense 478108269
Contribution to WPPE 35913469
Profit before Tax 718269386
Net profit after Tax 577238046
Page 21 of 43
Financial Statement of S.S Steel Ltd
Balance sheet
S.S Steel Ltd

June 30, 2022
Account Title Amount
Non-current liabilities 2336972485
Current liabilities 5100601068
Shareholders’ equity 5989164407
Total liabilities and equity 13964337960
Non-Current Assets 3350850708
Page 22 of 43
Ratio Analysis of S.S. Steel Ltd.
Liquidity Ratio
# Current Ratio: The current ratio describes the relationship between a company's assets and
over.
Items Year 2022

Current Ratio 2.08
available to cover each tk 1 of its short-term liabilities. It indicates that the company has a good
Items Year 2022

Current Assets (Without Inventory) 8079674520
Acid Ratio 1.58
Page 23 of 43
Probability Ratio

Items Year 2022

Total Asset 13964337960
Return on Asset 0.04
The company generates profit 0.04 poysha for every 1 Taka in assets it holds,
#Net Profit Margin: The net profit margin, or simply net margin, measures how much net income
Items Year 2022

Total Sale 5040198732
Net Profit Margin 0.11
Here, the Net profit margin is 0.11 Taka.
Page 24 of 43
Solvency Ratio
Items Year 2022

Page 25 of 43
Introduction Of RSRM
In order to address the rising demand for premium M.S. deformed bars in the nation, Ratanpur
Steel Re-Rolling Mills Ltd. (RSRM) was founded in January 1984.The mill is located in
Chittagong's forward-thinking Baizid Bostami Industrial Area. Reusing steel to make new steel
lowers CO2 emissions. Under our "go green" initiative, it began producing high-quality billets
from recyclable scrap in 2003.More than 496 million metric tons of recycled steel were produced
globally in 2006, which Prev ended an estimated 894 million metric tons of CO2 emissions. Today,
RSRM is regarded as one of the leading steel producers in the nation and has started a number of
projects to increase its ability to produce top-notch goods. Other essential ancillaries include a
main power substation, a water supply for emergencies, a station for supplying natural gas, a
machine shop with a CNC machine, a system for reducing pollution and a quality control
department that is well-equipped. cranes with various capacities, such as material-handling crawler
cranes.
Page 26 of 43
Income statement of RSRM
Income Statement
RSRM Ltd
June 30, 2022
Page 27 of 43
Financial Statement of RSRM
Balance Sheet
RSRM Ltd
June 30, 2022
Page 28 of 43
Ratio Analysis of RSRM Ltd
Liquidity Ratio
# Current Ratio: The current ratio describes the relationship between a company's assets and
over.
Items Year 2022

Current ratio 3.33
We know that A good ratio is 1.2 to 2, but the company has Tk 3.33 in current assets which is
available to cover each tk 1 of its short-term liabilities. It indicates that the company has a good
Items Year 2022

Current Assets (without Inventory) 2645847335
Acid ratio 2.36
Page 29 of 43
Probability Ratio

Items Year 2022

Net loss 379810114
Total asset 5681650523
Return on Assets Ratio (6.7)
# Net Profit Margin: The net profit margin, or simply net margin, measures how much net income
Items Year 2022

Net loss 379810114
Net sales 1450572204
Net Profit/Loss Margin (26.18)
Page 30 of 43
Solvency Ratio
Items Year 2022

Here the debt-to-equity ratio is 0.25
Page 31 of 43
Overall Comparison of all Company
Current Ratio Analysis (year 2021-2022)
In this comparison analysis, we examine BSRM, RSRM, SS Steel, S. Alam Steel, and GPH Ispat
companies financial standing by comparing their current ratios, debt-to-equity ratios, acid ratio,
returns on assets (ROA), and net profit margins. We aim to provide a thorough overview of how
these companies manage their liquidity, leverage, profitability, and overall financial health through
the use of instructive info graphics and data visualization. We can learn a great deal about the
strengths and weaknesses of these financial institutions by carefully examining these key financial
indicators. This will help investors, stakeholders, and anybody else with an interest in the company
to make wise decisions.
Current Ratio
3.5
2.5
Current Ratio
3.33
1.5
1 2.08
0.5 0.96 0.854 1.0018
0
BSRM RSRM SS steel S. Alam steel GPH Ispat
The current ratio is a measure of a company’s liquidity and its ability to cover its short- term
liabilities. A current ratio above 1 is generally considered healthy, as it indicates that a company
has more current assets to cover its current liabilities. Based on the provided current ratios: RSRM
-3.33, SS Steel-2.08, GPH Ispat -1.0018 These companies have current ratios above 1, which
suggests they are in a relatively good position to cover their short-term liabilities. On the other
hand: BSRM-.96 and Alam Steel -.854 These companies have current ratios below 1, which may
indicate a potential liquidity concern. A current ratio below 1 means they may have difficulty
covering their short-term obligations with their current assets.
Page 32 of 43
Debt to equity ratio:
Comparing the debt-to-equity ratios of different companies can provide insights into their financial
structures and risk profiles. Companies with higher debt-to-equity ratios may have more leverage
and potentially higher financial risk. On the other hand, companies with lower ratios may be more
conservative and have a stronger equity has. It's essential to consider the company’s specific
business model when making these comparisons.
Debt to Equity Ratio

8
6
Debt to Equity Ratio
4
7.07
3
2 4.16
1 1.96
1.24
0 0.25
As a conventional rule, a debt-equity ratio of 1:1is considered satisfactory. In the diagram, we see
that four (BSRM, SS Steel, S. Alam steel, GPH Ispat) companies’ debt-equity ratio is unfavorable.
It is clear that from the debt-equity ratio that four (4) companies have contributed more funds than
owners. A high debt-equity ratio may be unfavorable as the firm may not be able to raise further
borrowing, without paying higher interest, and accepting stringent conditions. This situation
creates undue pressures and unfavorable conditions to the firm from the lenders/creditors.
Page 33 of 43
Acid Test Ratio:
It measures the company's ability to pay off its short-term obligations from current assets,
excluding inventories.
ACID TEST RATIO

2.5
2
Acid test ratio
1.5
2.36
1
1.58
0.5
0.362 0.4335
0.31
0
As a conventional rule, a quick ratio of 1:1 is considered satisfactory. In the diagram, we see that
the three companies’ quick ratio are respectively. 31:1,.362:1, and.4735:1 which is not acceptable.
Thus, if the three companies’ inventories do not sell, and it has to pay all its current liabilities, it
may find it difficult to meet its obligations. On the other hand, the rest of the two companies’ quick
ratios are 2.36:1 and 1.58:1 which is acceptable. Investors can safely invest in these two
companies.
Page 34 of 43
Return On Assets (2021-2022):
When a company invests in the return on assets (ROA) of different companies, it provides
insights into their efficiency and profitability in generating earning from their total assets. A
higher ROA generally indicates better efficiency in using assets to generate profit, on the other
hand, a lower ROA suggests less efficiency.
Return On Assets
6
2 4.13
2.6
Return On Assets
2.3
0 0.399
-2
-6.68
-4
-6
-8
SS steel company stands out with the highest ROA with 4.13%. on the other side BSRM
company is in the relatively stronger financial position compared to SS steel company. BSRM
company and GPH company are in the almost same position in their financial position. GPH
company maintains 2.303%. But the RSRM company has a negative financial position with -
6.68%, which is not compared to the other company. But the lowest position belongs to SALAM
company which maintains 0.399%. This company inefficiency I’m generating earning from their
total assets. But the SS steel company is the highest position in efficiency in generating earning
from their assets. BSRM company and GPH company are in the better position.
Page 35 of 43
Profit Margin Ratio (2021-2022):
When comparing the net profit margin of different companies or financial institutions, it provides
Insights into their profitability and efficiency in managing expenses and generating profit. The
net profit margin is crucial financial metric that can help access the financial health and
performance of an equity.
Profit Margin
15
10
5 11.45
3.9 3.19
0 1.31
Profit Margin

-5
-10
-26.18
-15
-20
-25
-30
SS steel company gains the highest net profit margin at 11.45%. It has strong profitability and
efficient cost management. It is in a solid financial position. Then the second highest net profit
margin is 3.9% of BSRM company. It also has strong efficiency in cost management and
profitability. The third one is GPH company, which maintains a 3.19% net profit margin. On the
other hand, RSRM company is in a loss position with -0.26%. This situation is very vulnerable.
And SALAM company has the lowest position in profit margin and less efficient cost
management with 1.31%. This company is not bad position at all.
Page 36 of 43
Recommendations
Financial Analysis is a process of identifying the financial strength and weakness of the firm by
establishing relationships. Between the items, the balance sheet and profit and loss account.
Financial analysis helps to assess the financial position and profitability of a concern.
In this study to assess the selected firm’s financial status, ratio analysis has been applied covering
liquidity, profitability and solvency ratios. This study evaluates and compares the performance
of 5 steel companies (BSRM, RSRM, SS Steel, S. Alam Steel and GPH Ispat). The period of study
is the years 2021-2022.
The research study has analyzed the performance of selected steel companies. The methodology
of the present study includes data collection and data analysis tools used for the study.
The present research study is based on purely secondary data. The data for this analysis is taken
from each company. annual reports and other related information are taken from concerned steel
company websites, books, and journals.
In this research study, different ratio analysis has been used like current ratio, acid ratio, debt-to-
equity ratio, return on assets (ROA) and net profit margins analysis and graph analysis applied for
processing the data to give reliable conclusion. Comparing all the profitability ratios, it is inferred
that out of the ratios, SS steel company gains the highest net profit margin at 11.45% and S Alam
company has the lowest position in profit margin and less efficient cost management with 1.31%
and SS steel, BSRM and GPH company performed better in return on assets ratio and the other
selected companies. in the study must improve its level better in the coming years to reach the next
level. Comparing short term liquidity ratios,
It is inferred that RSRM and GPH Ispat company have performed better in current and quick
ratio, and other selected companies in this study have to improve their level. Comparing the debt-
to-equity ratio, it is inferred that all companies’ debt-to-equity ratio is favorable.
Page 37 of 43
Conclusion
In conclusion, the financial analysis conducted on the five selected steel companies, namely
BSRM, RSRM, SS Steel, S. Alam Steel, and GPH Ispat for the period of 2021-2022, sheds light
on their respective financial positions and performance. Through a comprehensive application of
ratio analysis encompassing liquidity, profitability, and solvency ratios, valuable insights have
been gleaned. SS Steel emerges with the highest net profit margin of 11.45%, showcasing
commendable cost management and operational efficiency. On the other hand, S. Alam Company
exhibits room for improvement in profit margin, highlighting the need for enhanced cost
management strategies.
Furthermore, in terms of return on assets (ROA), SS Steel, BSRM, and GPH Ispat demonstrate
robust performance, underscoring their effective utilization of assets to generate profits. However,
other companies in the study have room for growth in this aspect. In the realm of short-term
liquidity, RSRM and GPH Ispat stand out with superior current and quick ratios, indicating strong
liquidity positions. The remaining companies would benefit from efforts to bolster their liquidity.
It is worth noting that across all companies, the debt-to-equity ratios are favorable, indicating a
prudent approach to capital structure. This aspect reflects a balanced mix of debt and equity
financing. The findings of this analysis provide valuable insights for the selected steel companies,
offering a roadmap for further strategic enhancements in the coming years. By leveraging these
insights, these companies have the potential to ascend to greater heights in their
respective markets.
Reference
1. S. Alam Cold Rolled Steels Limited

https://www.s.alamgroupbd.com/sacrsl_ir_ar.php
2. Bangladesh Steel Re-Rolling Mills Limited

https://bsrm.com/wp-content/uploads/2022/12/7713_Nov_22_BSRM-Steels-Ltd_Annual-
Report_2021-22_Re-rolling_07_06-12-2022.pdf
3. GPH Ispat Limited

https://www.gphispat.com.bd/investor-matters
4. S.S. Steel Ltd

https://sssteel.biz/
5. Ratanpur Steel Re-Rolling Mills Ltd

http://rsrmbd.com/annual-report/
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Financial Accounting Assignment of Group-2

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Financial Accounting Assignment of Group-2

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Jagannath University

SUBMITTED TO: SUBMITTED BY:

Injamul Haque Joni B200204011

Maisha Jahan Mim B200204012

Mst. Sadiya Akter B200204013

Mst.Tunna Moni B200204014

Bibi Amena B200204015

MD. Jahidul Islam B200204016

Redwan Hossain Sarder B200204017

MD. Nazmul Hasan B200204018

Jannatul Ferdous Mim B200204019

Md. Abdur Rahim B200204020

Account Title Amount Amount

Items Year 2022

Current Liabilities 13489777288

Current ratio 0.854

Items Year 2022

Current Liabilities 13489777288

Acid Ratio 0.362

Items Year 2022

Total Assets 15672243955

Return on Assets 0.399%

#Net Profit Margin:

Items Year 2022

Total Sale 4761272509

Profit Margin Ratio 1.31%

Here, the Net profit margin is 1.31% Taka.

Items Year 2022

Total Equity 1941321219

Debt to equity ratio 7.07

Here the debt-to-equity ratio is 7.07.

Items Year 2022

Current Liabilities 74918052295

Current Ration 0.96

#Acid test ratio:

Items Year 2022

Current Liabilities 74918052295

Current Ration 0.31

Items Year 2022

Total Assets 118617227471

Return on Assets 0.026

#Net Profit Margin:

Items Year 2022

Net sales 79952801290

Profit Margin 0.039

Here, the Net profit margin is 3.9% Taka.

Items Year 2022

Total Equity 40095484064

Debt to equity ratio 1.96

Here the debt-to-equity ratio is 1.96.

Items Year 2022

Current Liabilities 30253040116

Current Ratio 1.0018

Items Year 2022

Current Liabilities 30253040116

Acid Ratio 0.4735

#Return on Assets: Return on assets is a metric that indicates a company's profitability in

Items Year 2022

Total Assets 64886746876

Return on Asset 2.303

Items Year 2022

Total Assets 46827524957

Net Profit Margin 3.191%

Here, the Net profit margin is 3.191 Taka.