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WELCOME TO THE

PRESENTATIONON

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Name Id. No.

Tarik Salman 143 051 029

Md. Shakhawatul Islam 143 051 070

Shafat Rahman 143 051 047

Md. Khoshnur Alam 143 051 020

Md. Anisul Haque Tareque 142 051 086

We Are

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Shinepukur Ceramics Limited (SCL) was incorporated in

Bangladesh on 26th January 1997 and commenced its

manufacturing operation in 1999. The Company was converted

to a Public Limited Company on 7th May 2008. The Shares of

the Company have been listed in the Dhaka Stock Exchange

(DSE) and Chittagong Stock Exchange (CSE) on 18th November

2008 under the DSE and CSE Direct Listing Regulations 2006.

SCL has no subsidiary or associate-Company. Bangladesh

Export Import Company (Beximco) Ltd owns its 100% shares,

thereby becoming its holding Company.

Company Profile

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Each of our activities must benefit and add value to the

common wealth of our society. We firmly believe that, in

the final analysis we are accountable to each of the

constituents with whom we interact; namely: our

employees, our customers, our business associates, our

fellow citizens and our shareholders.

Company Mission

Company Vision

To be regarded as world class ceramics

company through product.

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Board of Directors

Chairmen: A.S.F. Rahman

Vice Chairmen: Salman F. Rahman

Director: O.K. Chowdhury & Iqbal Ahmed

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Porcelain

Products

Bone China

Ivory China

Plain Porcelain

High Alumina Porcelain

Satin China

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Ratio Analysis

Ratio analysis is used to evaluate various aspects of a

company’s operating and financial performance such as its

efficiency, liquidity, profitability and solvency. The ratios

are categorized as Short-term Solvency Ratios, Debt

Management Ratios, Asset Management Ratios,

Profitability Ratios and Market Value Ratios.

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Items & Amounts

Items 2011 2012 2013

Gross Profit 653,104,250 674,037,754 477,671,044

Cost of Goods Sold 1,248,024,942 1,268,312,998 1,226,896,190

Net Sales 1,901,129,192 1,942,350,752 1,704,567,234

Net Profit 168,768,102 90,285,057 11,801,568

Sales 1,901,129,192 1,942,350,752 1,704,567,234

Capital Employed 3,594,603,758 3,572,722,968 3,437,927,613

Owner's Capital 4,499,760,423 4,544,462,049 4,487,866,589

Current Assets 1,617,231,951 1,796,412,804 1,710,385,576

Current Liabilities 1,648,906,953 1,772,067,117 1,756,989,717

Stock Or Inventory 891,674,750 845,059,407 912,642,408

Average Stock 330,676,340 326,749,984 337,857,421

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Mark Up Ratio

Here in these graph we can see that in 2012 the markup ratio is

increase to 53.14% which was previously 52.33% as because of the

gross profit was increased. But in 2013 their business was fall down

that’s why their gross profit decreases and the markup ratio is now

only 38.93%.

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Mark Up in 2011

Mark Up in 2012

Mark Up in 2013

Mark Up Ratio 52.33% 53.14% 38.93%

Mar

kup

Rat

io

Mark Up Ratio

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Gross Margin Ratio

As shown, in 2012 there net sales increased, that’s why the gross

margin ratio was increased to 34.70% which was previously 34.35%.

Although the sales of 2012 was more than in 2011 but the gross profit

did not increased as much as they sells. But in 2013 the sales goes

down, so there net sales was decreased as well as the gross profit. So

in 2013 the gross margin ratio reaches only 28.02%.

0.00%10.00%20.00%30.00%40.00%

Margin or Gross Profit Percentage

2011

Margin or Gross Profit Percentage

2012

Margin or Gross Profit Percentage

2013Gross Margin Ratio 34.35% 34.70% 28.02%

Mar

gin

or G

ross

Prof

it P

erce

ntag

e

Gross Margin Ratio

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Profit Margin Ratio

In this profit margin ratio graph we clearly saw that the profit

margin was fall down in 2012, and goes to 4.65% profit only. That

was 8.88% in 2011. But in 2013 their net profit was too low then the

previous years. That’s why the profit margin ratio goes to the bottom

and near to 0(zero) it’s only 0.69%. Because operating expense was

dramatically high in 2013.

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Return on Capital Employed Ratio

In 2012 the return on capital employed goes to 2.53%, which was

4.69% in 2011. But because of the company’s business fall down in

2013, the net profit was very low. That’s why the return on capital

employed ratio was only 0.34%.

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Return on Capital Invested / Equity Ratio

The return on capital invested ratio or the equity ratio in 2012 was

1.99%. In 2011 that was 3.75%. But in 2013 the net profit was too

lower than the previous year’s. The return on capital invested was

only 0.26%.

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Current Ratio

From this ratio table we can see that in 2011 the current ratio of the

company was 0.98 and in 2012 the ratio increased to 1.01, these

occurred because both the Current Assets & Current Liability

increased in 2012. In 2013 the Current Ratio again decreased

because the Current Liability increased more than the previous year

and also the Current Assets increased but not like the Current

Liability. The current ratio was 0.97 in 2013.

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Acid Test / Quick Ratio

The standard value of acid test ratio is 1:1. But company acid test

ratio was 0.54:1 in 2012. This was 0.44:1 in 2011. In 2012 the current

asset was higher as well as their current liabilities. In 2013 SCL’s

stock or inventory increased but their current asset decreased.

That’s why their quick ratio in 2013 was 0.45:1.

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Stock Turnover Ratio

Efficiency ratio calculates the turnover of receivables, the payment

of liabilities. In 2012 it was 3.88 times. Previous year it was 3.77

times. As because the cost of goods sold was increased and average

stock was decreased. But in 2013 the cost of goods sold and average

stocks both are decreased. That’s why the stock turnover ratio in

2013 was 3.63.

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Findings

Ceramic manufacturers pay high tariff on gas compared

to other sectors.

The industry faces high import duty on certain ceramic

raw materials from 7.5 percent to 15 percent. Besides, this

sector pays high Value Added Tax (VAT) of 15 percent on

produced goods.

They are 100% Export Company. So they tried to produce

that product what is taken from ordered.

Return on Equity, Profit Margin, Return on Assets all

were negative but when they set the packaging plant then all

ratios start to increase.

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Due to globalization customers are now becoming

connecting to another including manufacturers but SCL is

far behind (feedback).

We have noticed that SCL is not involved in any kind of

visible promotion for their brand and products.

They must introduce some new product line; ceramics

product for bathroom items, bathtub, basin, commode,

pans, tiles and other’s toilet accessories.

Recommendation

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Shinepukur Ceramics should increase the annual budget

for merchandising expenses.

Shinepukur Ceramics should cover as much outlet it can

ensuring the availability of the brands.

Shinepukur Ceramics can arrange cultural programs like–

verities shows, folk concerts etc under its brand to improve

brand image in the mind of people.

Shinepukur Ceramics may be sincere about their local

market then their profit will increase.

Preparedness for meeting the challenge of globalization

under WTO environment

Recommendation Cont…

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