Name: Ahasanul Azim

2002-6
Padma Cement Limited ID:0920028030

Ratio Analysis
Padma Cement Ltd has started its business as a private limited company as on 21st
January 1998. The company was converted into a public limited company as on
21st August 2001. Its competitor Niloy Cement Industries Ltd has started its
business as a private limited company as on 26st August 1995. The company was
converted into a public limited company as on June 1997.

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 Table of Contents Page number
Executive Summary 3
Introduction 4
Objectives 5-6
Methodology 7
Limitation 8
Literature Review 9-14
Findings and analysis 15-30
Recommendations 31
Conclusions 32
Bibliography 33
Appendix-A 34-36
Appendix-B 37

Page 3 of 34
Executive Summary

Ratio analysis involves methods of calculating and interpreting financial ratios to analyze and
monitor the firm’s performance. Ratios in this report are calculated from 2002 to 2006 and
are compared with other competitor companies to judge the performance of the main
company. Ratio analysis is predominately used by proponents of fundamental analysis. We
have done Ratio analysis of Padma Cement Ltd; from the year 2002 to 2006 which is the
main company. Padma Cement Ltd has started its business as a private limited company as on
21st January 1998. The company was converted into a public limited company as on 21st
August 2001. We then compare the performance of Padma Cement Ltd with one of its
competitor Niloy Cement Industries Ltd. Niloy Cement Industries Ltd was incorporated on
26th august 1995 as a private limited company. Niloy Cement Industries Ltd, an enterprise of
Nitol Group, was converted into a public limited company and shares were floated for
subscription in June 1997. The basic inputs to ratio analysis are the firm’s income statement
and balance sheet. In this report we analysis the firm financial statements in interest to
shareholders, creditors and the firm’s own management. Both current and prospective
shareholders are interested in the firm’s current and future level of risk and return, which
directly affect share price. The firm’s creditors are interested in the short term liquidity of the
company and its ability to make interest and principal payments. A secondary concern of
creditor is the firm’s profitability; they want assurance that the business is healthy.
Management, like stockholders, is concerned with all aspect of the firm’s financial situation,
and it attempt to produce financial ratios that will be considered favorable by both owners
and creditors. In addition, management uses ratios to monitor the firm’s performance from
period to period. There are many ratios that can we calculated from the financial statements
pertaining to a company's performance, activity, financing and liquidity. Some common

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ratios include the price-earnings ratio, debt-equity ratio, earnings per share, asset turnover
and working capital.

Introduction

Padma Cement Ltd has started its business as a private limited company as on 21st January
1998. The company was converted into a public limited company as on 21st August 2001.
After getting permission from SEC the company has collected TK 138,000,000 from the
share market, comprising Tk 30,000,000 from IPO and Tk 100,000,000 from Private
Placement. Annual production capacity of Padma cement ltd is 216,000 M/Ton. There is a
tough competition in the cement market now a day. On the other hand there is an off-period
and a pick-period in respect of utilization of cement. January to April is pick-period and rest
of the months is off-period. In the pick period, there dealers used to pay off maximum of their
outstanding. And for the rest of the months we require to sale a substantial quantity of cement
on credit terms. Moreover, our financial year is from October to September. Padma cement
ltd is in a good location in respect of geographical position. Padma Cement Ltd has the
largest factory in the north Bengal region in respect of production capacity.

Nitol Cement Industries Ltd. Is one of the earliest cement industries in Bangladesh. It has
been producing quality cement since its inception and marketing the same to Khulna-Jessore-
Satkhira-Kustia-Faridpur-Magura-Jhenidah and part of North Bengal district. The group
basically produces two types of cement i.e. Grey Cement & White Cement. The Grey Cement
is very popular in the market & being used to construct mainly bridges, highways, high rise
buildings and other national infrastructures. The annual production capacity of the Grey
Cement plant is in the tune of 130,000 MT. In the White Cement front, the group produces
Birla White cement under the joint venture agreement with Grasim Industries Ltd., India with
an annual Production capacity of 20,000 MT. Birla White cement is currently using for
making Tiles, Ceramic Products, and Paints & Other purposes. Niloy Cement Industries Ltd
was incorporated on 26th august 1995 as a private limited company to set up a clinker
grinding unit with only 50,000 metric tons of production capacity per annum. Niloy Cement
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Industries Ltd, an enterprise of Nitol Group, was converted into a public limited company and
shares were floated for subscription in June 1997 to expand its capacity from 50,000 metric
tons to 100,000 metric tons per annum. There cements are becoming very popular among
cement user especially among the western zone of the country.

Objectives
The key question in ratio analysis isn't only to get the right answer: for example, to be able to
say that a business's profit is 10% of turnover. We have to start working on ratio analysis
with the following question in our heads:

What are we trying to find out?

We have use ratio analysis to try to tell us whether the business

1. is profitable
2. has enough money to pay its bills
3. could be paying its employees higher wages
4. is paying its share of tax
5. is using its assets efficiently
6. has a gearing problem
7. is a candidate for being bought by another company or investor

And more, once we have decided what we want to know then we can decide which ratios we
need to use to answer the question or solve the problem facing us.

There are ratios that will help us with question 1, but that wouldn't help us with question 2;
and ratios that are good for question 5 but not for question 4 - we'll see!

We can simply make a list of the ratios we can use here but it's much better to put them into
different categories.

Profitability: has the business made a good profit compared to its turnover?

Return Ratios: compared to its assets and capital employed, has the business made a good
profit?

Liquidity: does the business have enough money to pay its bills?

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Asset Usage or Activity: how has the business used its fixed and current assets?

Gearing: does the company have a lot of debt or is it financed mainly by shares?

Investor or Shareholder

Not everyone needs to use all of the ratios we can put in these categories so the table that we
present at the start of each section is in two columns: basic and additional.

The basic ratios are those that everyone should use in these categories whenever we are asked
a question about them. We can use the additional ratios when we have to analyze a business
in more detail or when we want to show someone that we have really thought carefully about
a problem.

Users of Accounting Information

Now we know the kinds of questions we need to ask and we know the ratios available to us,
we need to know who might ask all of these questions! This is an important issue because the
person asking the question will normally need to know something particular.

Of course, anyone can read and ask questions about the accounts of a business; but in the
same way that we can put the ratios into groups, we should put readers and users of accounts
into convenient groups, too: let's look at that now.

The list of categories of readers and users of accounts includes the following people and
groups of people:

1. Investors.
2. Lenders.
3. Managers of the organization.
4. Employees.
5. Suppliers and other trade creditors.
6. Customers.
7. Governments and their agencies.
8. Public.
9. Financial analysts.
10. Environmental groups.
11. Researchers: both academic and professional.

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Methodology

Information regarding Padma Cement Ltd & Niloy Cement Industries Ltd Annual Reports
was collected by me for the year 2002-2006 from the Securities Exchange Commission Data
Library. After collecting necessary information about Padma Cement Ltd & Niloy Cement
Industries Ltd, I have then input all the data from Income Statement, Balance sheet into the
Spreadsheet by inputting formula I have made all the essential calculation of various ratios
relating to the performance and the efficiency of those companies in all those years. The
Annual Reports contained fundamental Income Statements, Balance Sheet as well as the
Cash Flow Statement which helped me a lot in generating all obligatory resources to make an
overall analysis of these companies. Furthermore, with the help of my text books, class notes,
internet and Microsoft Excel, I have calculated a number of ratios taking assistance of the
formulas done in class. Moreover, based on The Time Series, which evaluates the
performance of the company over time. Comparison of current to past performance, using
ratios, enables analysts to assess the firm’s progress. Developing trends can be seen by using
multiyear comparisons. Any significant year to year changes may be symptomatic of a major
problem. Cross-Sectional analysis method involves the comparison of different firm’s
financial ratios at the same point in time. Analysts are often interested in how well a firm has
performed in relation to other firms in its industry. Frequently, a firm will compare its ratio
values to those of a key competitor or group of competitors that it wishes to emulate. This
type of cross sectional analysis, called benchmarking. I have calculated those ratios and made
an analysis of the performance of those companies as a whole.

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Limitation

Working on this project, I have faced quite a number of limitations that acted as a barrier to
the excellence of the project. First there are not quite good archives of all the information of
the company’s annual report. There were no records of the company’s previous year share
market price. Niloy Cement Industries Ltd has two production units therefore they maintain
department wise income statement for each individual production units, whereas in Padma
Cement Ltd there are only one unit and single income statement no department wise
calculation, which put me into difficulty to calculate two department wise income statement
of Niloy Cement Industries Ltd in one (total) and compare it with Padma Cement Ltd.
Another problem I faced ranges from the lack of time to the cooperation of the people that I
was eager to generate relative information from two companies’ annual report. Without
adequate assistance of the stock exchange authorities and the lack of time to generate all data,
I faced severe barriers which may have been a reason for certain pitfalls in my project. The
figures in a set of accounts are likely to be at least several months out of date, and so might
not give a proper indication of the company’s current financial position. Inflation renders
comparisons of results over time misleading as financial figures will not be within the same
levels of purchasing power. Changes in results over time may show as if the enterprise has
improved its performance and position when in fact after adjusting for inflationary changes it
will show the different picture. No two companies are the same, even when they are
competitors in the same industry or market. Using ratios to compare one company with
another could provide misleading information. Businesses may be within the same industry
but having different financial and business risk. Ratio analysis is useful, but analysts should
be aware of these problems and make adjustments as necessary. Ratios analysis conducted in
a mechanical, unthinking manner is dangerous, but if used intelligently and with good
judgment, it can provide useful insights into the firm’s operations. I tried to make my
judgment based on all limitation in my mind and tried to make a good interpretation of the
data as much precise as possible.

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Literature Review
Financial ratios can be divided in convenience into five basic categories:

1. Liquidity ratios.
2. Activity ratios.
3. Profitability ratios.
4. Debt ratios.
5. Market ratios.

Liquidity ratios

A ratio used for assessing the liquidity of a company. The liquidity of a firm is measured by

Current Asset
its ability to satisfy
Current Ratio:
Current Liability its short term
obligation as they come due. Liquidity refers to the solvency of the firm’s overall financial
position- the ease with which it can pay its bills. Because a common precursor to financial
distress and bankruptcy is low or declining liquidity, these ratios can provide early signs of
cash flow problems and impending business failure. The two basic measures of liquidity are
the current ratio and the quick ratio.

a) Current Ratio: An indication of a company's ability to meet short-term debt

obligations; the higher the ratio, the more liquid the company is. Current ratio
is equal to current assets divided by current liabilities. If the current assets of a
company are more than twice the current liabilities, then that company is
generally considered to have good short-term financial strength. If current
liabilities exceed current assets, then the company may have problems meeting
its short-term obligations.

b) Quick Ratio: A measure of a company's liquidity and ability to meet its

obligations. Quick ratio, often referred to as acid-test ratio, is obtained by

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 subtracting inventories from current assets and then dividing by current
liabilities. Quick ratio is viewed as a sign of company's financial strength or
weakness (higher number means stronger, lower number means weaker). In
general, a quick ratio of 1 or more is accepted by most creditors; however,
quick ratios vary greatly from industry to industry.

Current Asset-
Quick Ratio: Inventory
Current Liability

Activity ratios

An indicator of how rapidly a firm converts various accounts into cash or sales. In general,
the sooner management can convert assets into sales or cash, the more effectively the firm is
being run.

a) Inventory Turnover: A measure indicating the number of times a firm sells

and replaces its inventory during a given period and calculated by dividing the
cost of goods sold by the average inventory level. A relatively low inventory
turnover may indicate ineffective inventory management (that is, carrying too
large an inventory) or carrying out-of-date inventory to avoid writing off
inventory losses against income. A high inventory turnover is generally
desirable.
Cost of goods sold
Inventory Turnover:
Inventory

b) Average collection period: The average time period for which receivables are
outstanding. Equal to accounts receivable divided by average daily sales. Also
called collection ratio.

Average Collection Accounts Receivable

Period: Average Sales Per
Day

c) Average payment period: The number of days a company takes to pay off
credit purchases. It is calculated as accounts payable / (total annual purchases /
360).
Accounts Payable
Average payment period Average Purchases
PD

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 d) Total asset turnover: Total asset turnover is used to determine how much
sales revenue a company generates from its investment in assets. This is a
measure of how well assets are being used to produce revenue.

Sales
Total asset turnover
Total Asset

Debt ratios

Debt capital divided by total assets. This will tell you how much the company relies on debt
to finance assets. When calculating this ratio, it is conventional to consider both current and
non-current debt and assets. In general, the lower the company's reliance on debt for asset
formation, the less risky the company is since excessive debt can lead to a very heavy interest
and principal repayment burden. However, when a company chooses to forgo debt and rely
largely on equity, they are also giving up the tax reduction effect of interest payments. Thus,
a company will have to consider both risk and tax issues when deciding on an optimal debt
ratio

a) Debt ratio: The proportion of a firm's total assets that are being financed with
borrowed funds. The debt ratio is calculated by dividing total long-term and
short-term liabilities by total assets. Assets and liabilities are found on a
company's balance sheet.
Debt Ratio: Total Liabilities
Total Asset

b) Times interest earned ratio: A measure of a company's ability to service its

debts. It is calculated by dividing the company's earnings before interest and
taxes by the total interest payable on its debts, expressed as a ratio. Investors
prefer publicly-traded companies to have a middling times-interest-earned
ratio. A low ratio indicates an inability to service debts, while too high a ratio
indicates a lack of debt that investors may find undesirable.

Times interest earned EBIT

ratio: Interest

Profitability ratio

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A ratio of whether and how much an investment will result in a profit. It is calculated by
taking the net present value of expected future cash flows from and investment and dividing
by the investment's original cost. A ratio above one indicates that the investment will be
profitable while a ratio below one means that it will not be. A profitability ratio is also called
a profitability index or a cost-benefit ratio.

a. Gross profit margin: A measure of how well a company controls its costs. It is
calculated by dividing a company's profit by its revenues and expressing the result
as a percentage. The higher the gross profit margin is, the better the company is
thought to control costs. Investors use the gross profit margin to compare
companies in the same industry and well as in different industries to determine
what are the most profitable. It is also called the profit margin or simply the
margin.
Gross Profit Margin: GP
Sales

b. Operating profit margin: A measure of how well a company controls its costs. It
is calculated by dividing a company's operating income by its revenues and
expressing the result as a percentage. The higher the operating profit margin is,
the better the company is thought to control costs. Investors use the operating
profit margin to compare companies in the same industry, as well as between
industries, to determine which are the most profitable.
Operating profit margin: Operating Profit
Sales

c. Net profit margin: Net profit divided by net revenues, often expressed as a
percentage. This number is an indication of how effective a company is at cost
control. The higher the net profit margin is, the more effective the company is at
converting revenue into actual profit. The net profit margin is a good way of
comparing companies in the same industry, since such companies are generally
subject to similar business conditions. However, the net profit margins are also a
good way to compare companies in different industries in order to gauge which
industries are relatively more profitable. Also called net margin.
Earnings available for
Net profit margin: Cs

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 Sales

d. Earnings per share: EPS. Total earnings divided by the number of shares
outstanding. Companies often use a weighted average of shares outstanding over
the reporting term. EPS can be calculated for the previous year ("trailing EPS"),
for the current year ("current EPS"), or for the coming year ("forward EPS"). Note
that last year's EPS would be actual, while current year and forward year EPS
would be estimates.
Earnings available for
Earnings per share: Cs
No of Cs

e. Return on total assets: A publicly-traded company's earnings before interest and

taxes, divided by its total assets, expressed as a percentage. This is a measure of
how well the company is using its assets to generate earnings. A high return on
total assets indicates that the company is investing wisely and is likely profitable;
a low return on equity indicates the opposite.
Earnings available for
Return on total assets: Cs
Total Asset

f. Return on common equity: ROCE. A variation of the Return on Equity formula

which subtracts preferred dividends from net income and preferred equity from
shareholders' equity. This variation shows the effect of common shares on
profitability. Its formula is (Net income - preferred dividends)/ (shareholders'
equity - preferred equity).

Earnings available for

Return on common equity: Cs
CS Equity

Market Ratios

a) Price earnings ratios: price/earnings ratio. The most common measure of how
expensive a stock is. The P/E ratio is equal to a stock's market capitalization
divided by its after-tax earnings over a 12-month period, usually the trailing
period but occasionally the current or forward period. The value is the same
whether the calculation is done for the whole company or on a per-share basis. For

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 example, the P/E ratio of company A with a share price of $10 and earnings per
share of $2 is 5. The higher the P/E ratio, the more the market is willing to pay for
each dollar of annual earnings. Companies with high P/E ratios are more likely to
be considered "risky" investments than those with low P/E ratios, since a high P/E
ratio signifies high expectations. Comparing P/E ratios is most valuable for
companies within the same industry. The last year's price/earnings ratio (P/E ratio)
would be actual, while current year and forward year price/earnings ratio (P/E
ratio) would be estimates, but in each case, the "P" in the equation is the current
price. Companies that are not currently profitable (that is, ones which have
negative earnings) don't have a P/E ratio at all.
Mkt price per share of
Price earnings ratio: Cs
EPS

b) Market ratios: A stock's book value divided by its market value. Book value is
calculated from the company's balance sheet, while market value is based on the
price of its stock. A ratio above 1 indicates a potentially undervalued stock, while
a ratio below 1 indicates a potentially overvalued stock. Technology companies
and other companies in industries which do not have a lot of physical assets tend
to have low book to market ratios.
Mkt price per share of
Market ratio: Cs
Book value per Cs

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Findings and Analysis

1. Liquidity Ratios
a) Current ratio

Company 2002 2003 2004 2005 2006

Padma
Cement
Ltd 1.5890401 0.898507 0.690493 1.018568 0.600049

Niloy
Cement
Ltd 1.0610955 0.766533 0.593134 0.420813 0.351355

Analysis

1) Padma Cement Ltd: In 2002 company current assets comfortably exceeded it’s the
current liability but it was below the standard. In 2003 and 2004 company current ratio was
way below the standard; it means firm’s was not able to meet its short term obligation. In
2005 the figure improved a little. But in 2006 it worsen

2) Niloy Cement Ltd: In 2002 Niloy cement industries current ratio was not strong compare
to the standard 2:1. In 2003 to 2006 current ratio positions worsen. It showed form in serious
liquidity crisis and not able to pay its short term obligation.

3) From 2002 to 2006 overall Padma cement current ratio was good compare with Niloy
cement. Both of their current ratio was below standard but Padma relatively hold better
position compared with Niloy.

b) Quick ratio

Company 2002 2003 2004 2005 2006

Padma 1.4880095 0.691719 0.547646 0.701571 0.492781

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 Cement
Ltd

Niloy
Cement
Ltd 0.8766342 0.562908 0.3744 0.299184 0.275917

Analysis

1) Padma Cement Ltd: In 2002 company quick ratio position was very good higher than the
standard 1:1. It means liquidity position of the company of the company was good. But in
2003 to 2006 it continued to fall. It shows that the firm had huge amount of unsold
inventories left during the year which considered being least liquidity items.

2) Niloy Cement Ltd: In 2002 company quick ration was not good. Liquidity position was
not good. In 2003 to 2006 the figures worsen a lot. It showed a huge amount of unsold
inventories are left out with the firm. Firm therefore will face liquidity problem to pay them.

3) Quick ratio of Padma was better than Niloy. But both Padma and Niloy was experiencing
liquidity crisis the ratios were not up to the standard measure.

Overall

1. Activity Ratios
a) Inventory Turnover ratio

Company 2002 2003 2004 2005 2006

Padma
Cement
Ltd 19.5958 4.268451 6.115023 5.072549 12.15573

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 Niloy
Cement
Ltd 15.655721 8.158918 3.301574 4.083997 9.714137

Analysis

1) Padma Cement Ltd: In 2002 firm inventory turnover ratio was quite good it shows 19.6
times stock turnover a year. But in 2003 the turnovers worsen compare to 2002. In 2004 the
slightly figure falls from 2004. But in 2006 the stock turnover ratio improves a lot.

2) Niloy Cement Ltd: In 20002 firm inventory turnover ratio was quite good it shows 15.66
times stock to turn over a year. In 2003 the figure went low compare with previous year. But
in 2004 and 2005 inventory turnover ratio decline it shows low running of the product. But in
2006 it peak a high:

3) Padma cement inventory turnover ratio in 2002 was 19.59 and Niloy cement had inventory
turnover 15.66. In 2003 inventory turnover ratio decreased from 19.59 to 4.2, of Padma but
Niloy performed well in 2003. But from year 2004 to 2006 inventory turnover of Padma
cement was higher than Niloy cement it shows Padma cement stock turnover was more than
Niloy cement.

b) Average collection period ratio

Company 2002 2003 2004 2005 2006

Padma
Cement
Ltd 206.742 244.8596 197.2514 149.8113 109.1066

Niloy
Cement
Ltd 86.815272 66.08113 117.8576 82.45312 46.98921

Analysis

1) Padma Cement Ltd: In 2002 Padma average collection period was very high; on average
it takes Padma 206.74 days to collect an account receivable. In 2004 the collection period
improve compared to previous year 2003. In 2006 collection period almost reduced to half
compared with past years.

2) Niloy Cement Ltd: Niloy cement average collection period ratio was good in 2002 but it
can be improve to increase firm liquidity position. In 2003 collection days decrease. But in
2004 the collection day almost become double. From 2005 to 2006 collection days started to
improve.

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3) In 2002 Padma had high average collection period than Niloy. This could be a technique of
Padma by giving more credit period time they were boosting their sales, whereas Niloy
showing efficiency to collect debt or allowing less credit period time. From 2003 to 2006
Padma tried to have control on early collection but collection days remain higher than the
Niloy cement.

c) Average payment period ratio

Company 2002 2003 2004 2005 2006

Padma
Cement
Ltd 0 5.611311809 5.648521219 5.669781 3.543372222

Niloy
Cement
Ltd 3.6811451 32.26044936 27.97596058 57.39768 28.89118433

Analysis

1) Padma Cement Ltd: In 2002 Padma average payment period was nil they bought most of
their purchase in cash it was good for the supplier but firm might face liquidity problem.
From 2003 to 2005 payment period was close to 6 days, firm could have improve the
payment period days in order to improve their liquidity problem, available of cash in business
means more fund available to generate profit. In 2006 payment days decreased even further.

2) Niloy Cement Ltd: In 2002 Niloy average payment period was 3.68.In 2003 it became
32.26 days which was higher compared with 2002. In 2005 payment days increased a lot
which helped the firm to have adequate amount of liquidity.

3) Niloy cement ltd average payment period ratio was good from 2002 to 2006 compared
with Padma cement ltd. Niloy had adequate amount of liquid in their company as they paid at
later date then Padma cement. With adequate amount of money they can use it to meet up
other expenses and boost their profit.

d) Total asset ratio

Company 2002 2003 2004 2005 2006

Padma
Cement
Ltd 0.5438522 0.328138 0.393113 0.497242 0.526157

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 Niloy
Cement
Ltd 1.2544716 0.592523 0.318736 0.248961 0.429287

Analysis

1) Padma Cement Ltd: In 2002 Padma cement ltd total asset turnover ratio was 0.54 times
which means the company turnover its assets 0.54 times per year. In 2003 and 2004 ratio
decline compare with 2002. In 2005 and 2006 again it increases which indicate the efficiency
with which firms uses its assets to generate sales

2) Niloy Cement Ltd: In 2002 Niloy total asset turnover ratio was 1.25 times per year, the
ratio in 2002 is good. But from 2003 to 2006 the figure continues to fall.

3) In 2002 Niloy had 1.25 times total asset turnover ratio almost double compare with Padma
in 2002. In 2003 Niloy still hold the position. In 2004 both Niloy and Padma cement have
almost same asset turnover ratio. From 2005 to 2006 Padma cement asset turnover ratio was
higher than Niloy which shows Padma was using its asset more efficiently to generate sales.

Overall

1. Debt Ratios
a) Debt ratio

Company 2002 2003 2004 2005 2006

Padma
Cement
Ltd 23.196821 39.47496724 47.64794837 59.49901 69.18886301

Niloy
Cement
Ltd 40.509238 36.64223634 45.64177623 51.93997 59.5798679

Analysis

1) Padma Cement Ltd: In 2002 Padma cement ltd had 23.2% of total asset financed by the
firm’s creditor. From 2003 to 2006 the percentages relatively grow bigger and it shows
greater amount of other people’s money being used to generate profit.

2) Niloy Cement Ltd: In 2002 Niloy cement Ltd has 40.5% of total assets financed by the
firm’s creditors. In 2003 the debt ratio decreases from 40.5 % to 36.6% from 2004 to 2006
debt ratio percentage grow bigger.

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3) In 2002 Padma cement debt ratio was lower 23.2% than Niloy 40.5%, which shows the
percentage of total asset financed by the firm creditor was higher in Niloy than Padma in year
2002. From 2003 to 2006 both Padma and Niloy cement firms where having almost same
kind of debt ratio; indebtness of both firms were same.

b) Times interest earned ratio

Company 2002 2003 2004 2005 2006

Padma
Cement
Ltd 1.8592734 -2.1372 -1.22881 -1.71718 -0.92052621

Niloy
Cement
Ltd 0.3523983 -0.6555 -0.8115 -0.76371 -0.466107462

Analysis

1) Padma Cement Ltd: In 2002 Padma cement interest coverage ratio was 1.86 which
measures the firm’s ability to make contractual interest payment. But the value was less than
the standard of 2 to 5. From 2003 to 2006 the firm interest coverage ratio was negative it
shows firm was not able to its liability properly.

2) Niloy Cement Ltd: In 2002 Niloy cement interest coverage ratio was 0.35 which show
firm was not able to payback its interest obligations. From 2003 to 2006 the situation even
worsen bad it shows negative figure which means firm was not able to pay its interest liability
properly.

3) In 2002 Padma hold high times interest earned ratio than Niloy, it shows Padma have more
ability to make contractual interest payment. From 2002 to 2006 both firm have showed their
inability to pay its debt, but Padma cement had more bad condition than Niloy to pay its debt.

Overall

1. Profitability Ratios
a) Gross Profit margin

Company 2002 2003 2004 2005 2006

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 Padma
Cement
Ltd 15.556972 -6.184788223 -5.876311977 -9.14335 -8.999022715

Niloy
Cement
Ltd 6.7451228 2.740403693 3.411787645 3.631946 1.706473567

Analysis

1) Padma Cement Ltd: In 2002 Padma cement gross profit margin was 15.6% which was
good, as firm was earning a positive percentage. From 2003 to 2006 gross profit margin
declined into negative profit, it may be due to increase in price of material or because of slow
running of the product.

2) Niloy Cement Ltd: In 2002 Niloy cement gross profit margin was 6.7% which was
moderate as firm earning positive income growth. In 2003 gross profit margin decrease to
half than in was in 2002. It will be difficult for the firm to meet of other expenses if it do not
earned enough gross profit margin. In 2004 to 2005 the value improves a little. In 2006 it
again went down.

3) In 2002 GP of Padma cement ltd was 15.6% whereas Niloy has 6.7% of gross profit
margin. This can be due to high cost of goods sold of Padma over Niloy. In 2003 to 2006
Padma earned negative GP but Niloy GP was good. Though GP were not high enough but
firm still earned positive GP.

b) Operating Profit margin

Company 2002 2003 2004 2005 2006

Padma
Cement
Ltd 6.3477697 -39.65267033 -30.75004407 -22.8554 -29.81898816

Niloy
Cement
Ltd -7.11247 -20.23786747 -23.67099515 -28.5572 -20.05711289

Page 22 of 34
Analysis

1) Padma Cement Ltd: In 2002 the firm was earning 6.34% which means for each sales
dollar remaining after all costs and expenses. It represents the pure profit earned on each sales
dollar. In 2003 to 2006 the figure went to negative percentage which means firm was
experiencing loss.

2) Niloy Cement Ltd: In 2002 the firm was experiencing negative net profit -7% which
means excess amount of expenditure over income. From 2003 to 2006 negative net profit
continued which was on average -2%.

3) Padma cement in 2002 had more operating profit margin than Niloy. But in the year 2003,
2004 operating profit margin though negative Niloy cement had good position. In the year
2005 and 2006 they almost had same operating profit margin.

c) Net Profit margin

Company 2002 2003 2004 2005 2006

Padma
Cement
Ltd 6.0303814 -40.32854149 -30.15646307 -22.9766 -29.91397478

Niloy
Cement
Ltd -7.11247 -20.23786747 -23.67099515 -28.5572 -20.05711289

Analysis

1) Padma Cement Ltd: In 2002 Padma had earned net profit margin of 6% after all costs
and expenses including interest, taxes had been deducted. There was some percentage of
profit for the shareholder. From 2003 to 2006 net profit went negative. There were no
incentives for the shareholders.

2) Niloy Cement Ltd: Niloy in 2002 had negative -7% net profit margin there are no sales
dollar remaining after all costs and expenses including interest, taxes had been deducted. The
negative trend continued in the year 2003,2004,2005,2006.

3) In 2002 net profit margin of Padma cement was better than Niloy. In the year 2003, 2004
Niloy cement and Padma had negative net profit margin but Niloy net profit margin was
good. In 2005 and 2006 net profit margin was almost same.

d) Earnings per share

Page 23 of 34
 Company 2002 2003 2004 2005 2006

Padma
Cement
Ltd 0.6234092 -1.75245 -1.48479 -1.44852 -1.745193406

Niloy
Cement
Ltd -15.65122 -16.1941 -10.0291 -8.94906 -10.59687813

Analysis

1) Padma Cement Ltd: In 2002 firm EPS was 0.62 which shows number of dollars earned
during the period on behalf of each outstanding share of common stock. In 2003 to 2006 EPS
was negative it means stockholders were losing money against their share.

2) Niloy Cement Ltd: In 2002 EPS of Niloy was negative -15.65 which was bad in respect
of the interest to present or prospective stockholders and management. In 2003 situation
worsen further. In 2004 negative earnings per share reduced, although negative earnings per
share continued in 2005 and 2006.

3) In 2002 Padma EPS was 0.62 but Niloy cement EPS was -15.65. Stockholders in 2002 of
Padma earned 0.62 per share whereas stockholder of Niloy losing money on their share. From
2003 to 2006 EPS of Padma were relatively better than Niloy cement.

e) Return on total asset (ROA)

Company 2002 2003 2004 2005 2006

Padma
Cement
Ltd 3.2796364 -13.23331022 -11.85488715 -11.4249 -15.73943567

Niloy
Cement
Ltd -8.922392 -11.99139754 -7.544789148 -7.1096 -8.610255418

Analysis

Page 24 of 34
1) Padma Cement Ltd: In 2002 ROA was 3.27% which shows effectiveness of management
in generating profits with its available assets. But from 2003 to 2006 there were negative
profit; firm could not generate profits with its available assets.

2) Niloy Cement Ltd: In 2002 ROA was -8.9% which shows ineffectiveness of management
of not generating profit with its available assets. From 2003 to 2006 negative ROA continues
relatively gap of negative return lessen but still it’s a negative return of total asset.

3) In 2002 Niloy ROA was -8.9% whereas Padma cement Ltd was 3.3% of return on asset.
From 2003 to 2006 Niloy was experiencing negative return on their asset but negative return
was less than the Padma cement ltd.

f) Return on common equity

Company 2002 2003 2004 2005 2006

Padma
Cement
Ltd 4.163233 -21.230887 -21.93364032 -27.2231 -48.8064922

Niloy
Cement
Ltd -14.99794 -18.92648485 -13.87975659 -14.7932 -21.30189827

Analysis

1) Padma Cement Ltd: In 2002 Padma earned 4.1% of return on its common equity. From
2003 to 2005 the figure went into negative, the return earned on the common stockholder
investment in the firm were negative. In 2006 return worsen from the past years.

2) Niloy Cement Ltd: In 2002 Niloy losses -15% on its common equity. And it continued
same from 2003 to 2006. Returns on common equity shows firm earn negative return on its
equity.

3) In 2002 Padma return on common equity was 4.2% but Niloy return was -15% negative
returns. From 2003 to 2006 Padma return on common equity was negative but compare to
Niloy, Niloy return on common equity from 2003 to 2006 was negative but better position
than Padma.

Overall

Page 25 of 34
 1. Market Ratios
a) Price earnings ratio

Company 2002 2003 2004 2005 2006

Padma
Cement
Ltd 13.548387 -2.24 -2.7027 -2.41379 -1.828571429

Niloy
Cement
Ltd -7.092652 -5.49722 -7.40279 -4.94413 -7.169811321

Analysis

1) Padma Cement Ltd: In 2002 P/E ratio shows 13.6 which means owner’s appraisal of
share value. It showed 13.6 amount investors were willing to pay for each dollar of a firm’s
earnings. In 2003 to 2006 P/E ratio was negative. During the year 2003 to 2006 degree of
confidence of investors was very low, all are negative earnings.

2) Niloy Cement Ltd: In 2002 P/E ratio of Niloy shows lack of confidence in firm future
performance. P/E ratio in 2002 was -7.09 which means lack of willingness of investor to pay
for each dollar of a firm’s earnings.

3) Price earning in 2002 of Padma was 13.55 whereas Niloy had -7.09 negative values. It
shows in Padma investors were willing to pay for each dollar of a firm earning more than
Niloy. From 2003 though Padma experienced negative price earning but it was better than
Niloy.

b) Market ratio

Company 2002 2003 2004 2005 2006

Padma
Cement
Ltd 0.5611222 0.475152 0.590842 0.657895 3.361344538

Niloy
Cement
Ltd 1.0636259 1.040206 1.027539 0.731526 1.527638191

Analysis

1) Padma Cement Ltd: In 2002 market ratio of Padma cement ltd was 0.56 which shows
investors were currently paying 0.56 for each 1.00 of book value of Padma’s Stock. Investors

Page 26 of 34
were under valuing the share of Padma ltd than its book value. In 2003 market ratio was 0.47
may be due to investor lack of confidence. In 2004 and 2005 it went high a little. But in 2006
market ratio went high 3.36 for each 1 of book value.

2) Niloy Cement Ltd: In 2002 Niloy cement had 1.06 market ratios for each 1 of book value
of company’s stock. In 2003 and 2004 market ratio was 1.04 and 1.02 respectively. In 2005 it
went down. But in 2006 it went high 1.5 which shows investor confidence on the company.

3) In 2002 market ratio of Niloy shows for 1 of book value of Niloy shares they were willing
to pay 1.06 almost same as the book value. But Padma market value in 2002 was 0.56 which
shows investor lack of confident on Padma share. In 2003 to 2004 Niloy shareholder paid as
much as its book value. But shareholder of Padma undervalued its share then the book value.
In 2005 market ratio remain low for Padma then Niloy. In 2006 investor showed their
confidence, assessing Padma future growth therefore market ratio increase to 3.36 whereas
Niloy shareholder value its share according to its book value.

Overall

Recommendations
By observing the liquidity, activity, debt, profitability and market ratio of Padma cement ltd
we can say stockholders are in the good position. By observing the current and quick ratio
company condition is good, compared with Niloy cement industries Ltd because they have
good liquidity position they able to meet all of their short-term obligation and able to take
benefit like bulk purchase, trade discount from the supplier which helped them to reduced
their cost of production and increase their gross profit. Activity ratios also showed Padma
cement ltd efficiency. Inventory turnovers of Padma Cement Ltd also very high then Niloy
cement industries Ltd, it shows Padma cement ltd products are running good, demand of their
product are also high as they are giving high sales credit period times then Niloy Cement
Industries Ltd. High credit period put little disadvantage over Padma cement cash flow if they
could reduced their credit period they could have gain better position. Average payment
period of Padma cement also high if they can increase their payment period and decrease

Page 27 of 34
their collection period their cash flow will increase. We can see that the return on their asset
also good they are using their asset effectively to earn profit. Debt ratio is high for Padma
which shows high amount of fund financed by the creditor. If Padma cement ltd can reduced
their debt they can increase their profit more. We can see that interest earned ratio is bad for
Padma cement ltd compare with Niloy as they have more fund financed by the creditor and
therefore they have to pay huge amount of interest. Profitability of Padma cement ltd is not
good but if the company can reduced their cost of goods sold they have scope to increase
their profitability. If they can reduced their debt and therefore interest that have to pay against
it will decrease and profitability will go up. EPS is not positive but there is a possibility that
firm can earn positive EPS in the future if they can repay their loan, increase their products
demand or decrease their cost of production. But Niloy cement Industries Ltd have huge
amount of negative earning, shareholder of Niloy cement ltd losing huge amount of money
against their share. Price earnings ratio of Padma cement ltd also better then Niloy but Padma
have negative price earnings ratio. In the future P/E ratio will also be good if the firm can
marketed their product well, create a brand name. Prospective share can hold their investment
for some times till the firm improved their performance therefore they can have safe
investment if they want can buy the firm share at low price and they will have benefit in
return as firm market ratio all other ratio indicate a brighter future.

Conclusions

Padma Cement Ltd has started its business as a private limited company as on 21st January
1998. The company was converted into a public limited company as on 21st August 2001.
Padma cement has brighter future if it can reduce its debt because huge amount of cost is
incurring against their debt. Padma cement ltd through strong marketing can increase the
sales of their products thus it will increase their firm profitability. Padma cement ltd also can
try to expand their market in Bangladesh through branding of their product. Padma cement
ltd can increase their sales through sales promotion. They can also outsource their product in
other country they have the largest factory in north Bengal and can use it to maximum
capacity. Stockholders of Padma cement ltd and prospective shareholders can gain maximum
benefit from the firm if they all support the firm together.

Page 28 of 34
Bibliography
Books

Principles of Managerial Finance (Eleventh Edition) Author: Lawrence J.Gitman, Publisher: Pearson education.

A Dictionary of Accounting (Oxford Paperback Reference) (Paperback)

by Gary Owen (Editor), Jonathan Law (Editor), Robert Hussey (Editor)

Internet Website:

Stock market price archive: www.bdstockprice.com

Bdstockprice.com© 2009

Share market analysis: www.stockbangladesh.com

StockBangladesh.com © 2009

Dhaka stock exchange: www.dse.com.bd

Page 29 of 34
 Copyright Dhaka Stock Exchange

Investing glossary: www.investorwords.com

InvestorWords.com is operated by WebFinance Inc.

Glossary: www.financial-dictionary.thefreedictionary.com

Copyright © 2010 Farlex, Inc

Introduction: http://www.nitolniloy.com.bd/nitolcement.html

Design and developed by IT Division, Nitol- Niloy Group

Primary Source:

Padma Cement Ltd annual report 2002

Padma Cement Ltd annual report 2003

Padma Cement Ltd annual report 2004

Padma Cement Ltd annual report 2005

Padma Cement Ltd annual report 2006

Niloy Cement Industries Ltd annual report 2002

Niloy Cement Industries Ltd annual report 2003

Niloy Cement Industries Ltd annual report 2004

Niloy Cement Industries Ltd annual report 2005

Niloy Cement Industries Ltd annual report 2006

Appendix-A
C o m p a nR ya t io s F o r m u la Y ear
L iq u id it y R a t io 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006
P a d m a1 C u r r e n t R a t io C u r r e n t A s s e t 1 3 6 ,9 8 0 ,1 3 0 . 0 0 1 2 9 ,6 3 7 ,1 5 9 . 0 0 1 1 3 ,7 3 1 ,2 9 2 . 0 0 1 2 0 ,2 9 6 ,9 4 4 . 0 0 8 0 ,7 6 7 ,4 9 3 . 0 0
C u r r e n t L ia b ilit y 8 6 ,2 0 3 ,0 16 5. 5. 80 90 0 4 0 11 4 4 ,2 8 0 ,6 003. .80908 5 0 7 1 68 49 ,7 1 0 ,1 90 6. 6. 09 00 4 9 3 13 13 82 ,1 0 3 ,914. 09 1. 08 05 16 38 4 ,6 0 1 ,4 5 1 . 0 00 . 6 0 0 0 4 9 2

N i l o y 1 C u r r e n t R a t io C urre nt A sse t 12 0641 172 60690424 57577069 44019321 41221863

C u r r e n t L ia b ilit y 1 1 3 ,6 9 4 ,912. 0 .60100 9 5 57 9 1 7 5 1 7 9 0 . 7 6 6 5 3 3 49 67 10 7 2 6 0 2 0 . 5 9 3 1 3 4 01 08 54 6 0 5 3 50 1. 4 2 0 8 1 31 7 3 2 2 5 3 1 0 . 3 5 1 3 5 5 0 4 4

P a d m a2 Q u ic k R a t io C u r r e n t A s s e t - I n v e n1 t2o8r ,2y 7 0 ,9 7 6 . 0 0 9 9 ,8 0 1 ,6 0 2 . 0 0 9 0 ,2 0 2 ,8 0 5 . 0 0 8 2 ,8 5 8 ,2 7 1 . 0 0 6 6 ,3 2 9 ,0 6 0 . 0 0
C u r r e n t L ia b ilit y 8 6 ,2 0 3 ,0 16 5. 4. 80 80 0 0 9 51 4 4 ,2 8 0 ,6 003. .60901 7 1 8 17 67 45 ,7 1 0 ,1 90 6. 5. 04 07 6 4 5 15 14 85 ,1 0 3 ,904. 79 0. 01 05 17 31 4 ,6 0 1 ,4 5 1 .00 .04 9 2 7 8 1 1 6 6

N i l o y 2 Q u ic k R a t io C u r r e n t A s s e t - I n v e9 n9 t6o 6r 8y 8 6 0 44568352 36343956 31296279 32371239

C u r r e n t L ia b ilit y 1 1 3 ,6 9 4 ,902. 08 .70606 3 4 27 9 1 7 5 1 7 9 0 . 5 6 2 9 0 8 19 37 10 7 2 6 0 2 0 . 3 7 4 3 9 917034 6 0 5 3 50 1. 2 9 9 1 81 41 7 3 2 2 5 3 1 0 . 2 7 5 9 1 6 6 4 4

Page 30 of 34
 A c t iv it y 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006
P a d m a3 I n v e n t o r y T u r n o Cv eo rs t o f g o o d s o1 ld7 0 6 6 2 8 3 6 127351614 143877242 189909495 175509701
I n v e n to r y 8 7 0 9 1 5 4 1 9 . 5 9 5 82 9 8 3 5 5 5 7 4 . 2 6 8 4 5 21 30 53 2 8 4 8 67 . 1 1 5 0 2 33172413 8 6 57 .3 0 7 2 5 14 49 4 3 8 4 3 3 1 2 . 1 5 5 7 3 0 5 4

N i l o y 3 I n v e n t o r y T u r n o Cv eo rs t o f g o o d s o3 ld2 8 3 3 6 6 6 1 131538657 70102704 51960860 85976171

I n v e n to r y 2 0 9 7 2 3 1 21 5 . 6 5 5 7 21 16 1 2 2 0 7 2 8 . 1 5 8 9 1 72610213 3 1 1 3 . 3 0 1 5 7 41427792 3 0 4 .2 0 8 3 9 98 78 5 0 6 2 4 9 . 7 1 4 1 3 6 6 5 3

P a d m a4 A v e r a g e C o lle cAt ioc nc oPu en rt ios dR e c e 1iv1a 4b4le7 5 0 9 2 80457487 73437945 71416940 48132316
A v e r a g e S a le s P5 5e 3r 7D0 a9 y. 9 0 92 60 6 . 7 4 32 2 8 5 8 6 . 1 7 2 64 4 . 8 5 93 67 22 53 0 6 . 3 14 92 75 . 2 5 1 43 79 63 79 1 2 . 15 40 94 1. 8 14 14 31 1 4 9 . 3 6 41 40 9 . 1 0 6 6 1 9 9

N i l o y 4 A v e r a g e C o lle cAt ioc nc oPu en rt ios dR e c e iv8 3a 7b 4le3 4 9 6 23179109 21889175 11326531 10882653
A v e r a g e S a le s P9 6e 4r 6D1 a7 y. 1 08 46 1. 8 1 5 2 37 52 0 7 6 7 . 4 3 68 64 . 0 8 1 1 13 80 58 7 2 5 . 6 13 18 74 . 8 5 7 15 38 73 39 6 9 . 83 23 .9 47 5 32 13 21 5 9 8 . 9 7 84 16 . 9 8 9 2 0 9 9 3

P a d m a5 A v e r a g e p a y m e An t c pc eo ruion dt s P a y a b le0 1893750 1690500 2690000 1214858

A v e r a g e P u r c h a3 s4 e8 s2 3P 9D. 3 2 3 3 0 3 3 7 4 8 7 . 9 2 58 . 86 1 1 3 1 21 98 90 29 8 1 . 8 57 .16 24 8 5 2 41 72 41 49 4 5 . 51 .0 61 64 9 73 84 12 8 5 3 . 6 2 13 9. 5 4 3 3 7 2 2 2 2

N i l o y 5 A v e r a g e p a y m e An t c pc eo ruion dt s P a y a 2b le9 2 5 8 8 0 9683708 4517867 6660368 5914283

A v e r a g e P u r c h a7 s9 e4 s8 2P 8D. 7 53 3. 64 8 1 1 4 35 01 0 1 7 2 . 7 5 36 22 . 2 6 0 4 14 69 13 46 9 1 . 0 24 71 .19 7 5 9 16 10 65 08 3 8 . 59 76 .7 31 9 72 60 84 7 0 8 . 9 1 52 18 . 8 9 1 1 8 4 3 3

P a d m a6 T o t a l a s s e t t u r n o v e Sr a le s 202104117 119933953 135891815 174000064 161019518

T o t a l A s s e t 3 7 1 6 1 5 8 504 . 5 4 3 8 5 23 26 5 4 9 8 9 8 01 . 3 2 8 1 3 73 54 85 56 8 1 6 10 2. 3 9 3 1 1 23 64 59 19 3 0 50 9. 48 9 7 2 34026 0 2 9 6 3 8 0 . 5 2 6 1 5 6 6 1 4

N i l o y 6 T o t a l a s s e t t u r n o v e Sr a le s 352085243 128030115 67789858 50139809 84533627

P r o f it a b ilit y 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006
T o t a l A s s e t 2 8 0 6 6 4 1 810 . 2 5 4 4 7 12 61 6 0 7 6 2 7 04 . 5 9 2 5 2 2 71 82 26 8 3 6 60 4. 3 1 8 7 3 52 60 1 3 9 6 60 2. 25 4 8 9 16916 9 1 6 4 0 0 0 . 4 2 9 2 8 6 8 8
P a d m a9 G r o s s P r o f it M a r g in G P 31441281 -741 7661 -7 9 8 5 4 2 7 -1590943 1 -14490 183
S a le s 2 0 2 1 0 4 1 1 71 5 . 5 5 6 9 7 12 1 9 9 3 3 9 5 3- 6 . 1 8 4 7 8 8 12 32 538 9 1 8 1- 55 . 8 7 6 3 1 1 19 77470 0 0 0 6- 94 . 1 4 3 31 56 1 0 1 9 5 1 8 - 8 . 9 9 9 0 2 2 7 1 5

N i l o y 9 G r o s s P r o f it M a r g in G P 23748582 3508542 2312846 1821051 1442544

S a le s 3 5 2 0 8 5 2 4 36 . 7 4 5 1 2 2 18 2 8 0 3 0 1 1 5 2 . 7 4 0 4 0 3 66 97 37 8 9 8 5 83 . 4 1 1 7 8 7 65 40 51 3 9 8 0 39 . 6 3 1 9 4864 5 3 3 6 2 7 1 . 7 0 6 4 7 3 5 6 7

P a d m a1 0O p e r a t in g p r o f it m Oa rpgeinr a t in g P r o f it 1 2 8 2 9 1 0 4 -4 7 5 5 7 0 1 5 -4178 6793 -3976833 4 -48014 391

S a le s 2 0 2 1 0 4 1 1 76 . 3 4 7 7 6 9 17 1 9 9 3 3 9 5 3- 3 9 . 6 5 2 6 7 10 33 538 9 1 8 1- 53 0 . 7 5 0 0 4 14 70470 0 0 0 6- 24 2 . 8 5 51 46 1 0 1 9 5 1 8 - 2 9 . 8 1 8 9 8 8 1 6

N i l o y 1 0O p e r a t in g p r o f it m Oa rpgeinr a t in g P r o f it- 2 5 0 4 1 9 5 7 -2 5 9 1 0 5 6 5 -1604 6534 -1431850 2 -16955 005

S a le s 3 5 2 0 8 5 2 4 3 - 7 . 1 1 2 4 71 2 8 0 3 0 1 1 5- 2 0 . 2 3 7 8 6 67 74 7 8 9 8 5 8- 2 3 . 6 7 0 9 9 5 01 15 3 9 8 0 -92 8 . 5 5 7 82 4 5 3 3 6 2 7 - 2 0 . 0 5 7 1 1 2 8 9

P a d m a1 1N e t p r o f it m a r g inE a r n in g a v a ila b le f1o 2r 1 C8 s7 6 4 9 -4 8 3 6 7 6 1 4 -4098 0165 -3997927 3 -48167 338

S a le s 2 0 2 1 0 4 1 1 76 . 0 3 0 3 8 1 14 1 9 9 3 3 9 5 3- 4 0 . 3 2 8 5 4 11 34 598 9 1 8 1- 53 0 . 1 5 6 4 6 13 70470 0 0 0 6- 24 2 . 9 7 61 66 1 0 1 9 5 1 8 - 2 9 . 9 1 3 9 7 4 7 8

N i l o y 1 1N e t p r o f it m a r g inE a r n in g a v a ila b le f- o2 r5 0C 4s 1 9 5 7 -2 5 9 1 0 5 6 5 -1604 6534 -1431850 2 -16955 005

S a le s 3 5 2 0 8 5 2 4 3 - 7 . 1 1 2 4 71 2 8 0 3 0 1 1 5- 2 0 . 2 3 7 8 6 67 74 7 8 9 8 5 8- 2 3 . 6 7 0 9 9 5 01 15 3 9 8 0 -92 8 . 5 5 7 82 4 5 3 3 6 2 7 - 2 0 . 0 5 7 1 1 2 8 9

P a d m a1 2ED ae rbn tin g s p e r s h aEr ea r n in g a v a ila b le f1o22r 10C80 s726 4 9 2 0 0 2 - 42 803 06 37 6 1 4 2 0 0 3 - 42 009 08 40 1 6 5 2 0 0 4 - 32 909 07 95 2 7 3 2 0 0 5 - 42 801 06 76 3 3 8 2006
P a d m a7 D e b t R a t io T No toa lo Lf iaC bs ilit ie s 18 96 52 50 03 00 06 05 0 . 6 2 3 4 0 9 12 47 46 20 08 00 06 00 -3 1 . 7 5 2 4 4 9 127 678 463 70 10 00 01 09- 16 . 4 8 4 7 8 8 225 078 867 20 00 05 02 -051 2. 4 4 8 522217 16 70 30 08 04 02 7 - 1 . 7 4 5 1 9 3 4 0 6
T o ta l A s s e t 3 7 1 6 1 5 8 5 24 3 . 1 9 6 8 23 16 5 4 9 8 9 8 13 9 . 4 7 4 9 63742546 8 1 6 1427 . 6 4 7 9 43843979 3 0 559 98 . 4 9 9 30 01 6 0 2 9 6 3 8 6 9 . 1 8 8 8 6 3 0 1
N i l o y 1 2E a r n in g s p e r s h aEr ea r n in g a v a ila b le f- o2 r5 0C 4s 1 9 5 7 -2 5 9 1 0 5 6 5 -1604 6534 -1431850 2 -16955 005
N i l o y 7 D e b t R a t io T No toa lo Lf iaC Sb ilit ie s1116 30 60 90 40 90 2 0- 1 5 . 6 5 1 2 271 96 10 70 50 10 07 9 - 1 6 . 1 9 4 1 0 931 716 30 70 02 06 0 -21 0 . 0 2 9 0 8 131076450 60 00 50 30 -58 1. 9 4 9 011616 70 30 20 20 50 3 1 - 1 0 . 5 9 6 8 7 8 1 3
T o ta l A s s e t 2 8 0 6 6 4 1 8 40 0 . 5 0 9 2 32 81 6 0 7 6 2 7 43 6 . 6 4 2 2 32613246 8 3 6 6445 . 6 4 1 7 72602133 9 6 652 15 . 9 3 9 19 97 6 9 1 6 4 0 0 5 9 . 5 7 9 8 6 7 9
P a d m a1 3R e t u r n o n t o t a l aEs as er nt sin g a v a ila b le f1o 2r 1 C8 s7 6 4 9 -4 8 3 6 7 6 1 4 -4098 0165 -3997927 3 -48167 338
P a d m a8 T im e s in t e r e s t e a r Tn eoE dtBa rlIaATt ios s e t 32 77 17 65 19528 85 143 . 2 7 9 6 3 6 3-4 36 25 34 99 87 99 83 18- 1 3 . 2 3 3 3 1 3-024235206 83 18 63 11- 219 1 . 8 5 4 8 8 3-724159519 33 02 54 9-6 1821 . 4 2 43- 920 36 00 21 93 67 34 89 - 1 5 . 7 3 9 4 3 5 6 7
In te r e s t 1 4 9 3 0 1 7 7 1 . 8 5 9 2 7 3 14 5 1 5 9 0 7 7 - 2 . 1 3 7 1 9 71 28 77 14 8 4 7 -41 . 2 2 8 8 1 0134 56 53 5 8 7- 21 . 7 1 7 12 85 0 0 0 6 4 5 - 0 . 9 2 0 5 2 6 2 1
N i l o y 1 3R e t u r n o n t o t a l aEs as er nt sin g a v a ila b le f- o2 r5 0C 4s 1 9 5 7 -2 5 9 1 0 5 6 5 -1604 6534 -1431850 2 -16955 005
N ilo y 8 T o ta l a s s e t 2 8 0 6 6 4 1 8 0- 8 . 9 2 2 3 9 2 1 6 0 7 6 2 7 4- 1 1 . 9 9 1 3 9 27 15 246 8 3 6 6- 47 . 5 4 4 7 8 9 21 04183 9 6 6 2 -57 . 1 0 9 16 9 6 9 1 6 4 0 0 - 8 . 6 1 0 2 5 5 4 1 8
T im e s in t e r e s t e a r n eE dB rIaTt io 13626808 -1 0 2 5 9 4 0 3 -7 1 8 8 3 7 0 -6200 084 -53 90365
In te r e s t 3 8 6 6 8 7 6 5 0 . 3 5 2 3 9 8 13 5 6 5 1 1 6 2 - 0 . 6 5 5 5 0 4 82 83 57 8 1 6 4 - 0 . 8 1 1 4 9 6 86 10 14 8 4 1 8- 0 . 7 6 3 71 11 5 6 4 6 4 0 - 0 . 4 6 6 1 0 7 4 6 2
P a d m a1 4R e t u r n o n c o m m Eo an r ne inq ug it ay v a ila b le f1o 2r 1 C8 s7 6 4 9 -4 8 3 6 7 6 1 4 -4098 0165 -3997927 3 -48167 338
C S E q u it y 2 9 2 7 4 4 8 2 2 4 . 1 6 3 2 3 32 2 7 8 1 7 2 0 8 - 2 1 . 2 3 0 8 18 87 6 8 3 7 0 4- 32 1 . 9 3 3 6 4 10 43628 5 7 7 7- 20 7 . 2 2 3 91 8 6 9 0 4 3 2 - 4 8 . 8 0 6 4 9 2 2

N i l o y 1 4R e t u r n o n c o m m Eo an r ne inq ug it ay v a ila b le f- o2 r5 0C 4s 1 9 5 7 -2 5 9 1 0 5 6 5 -1604 6534 -1431850 2 -16955 005

C S E q u it y 1 6 6 9 6 9 2 6 0- 1 4 . 9 9 7 9 41 3 6 9 0 1 0 9 5- 1 8 . 9 2 6 4 8 14 18 556 1 1 0 6- 21 3 . 8 7 9 7 5 96 65 79 9 1 2 7 -41 4 . 7 9 3 72 9 5 9 3 8 6 9 - 2 1 . 3 0 1 8 9 8 2 7

Page 31 of 34
 M a rk e t 2002 2002 2003 20032004 2 0 0 4 2 0 0 5 2 0 0 52 0 0 6 2006
P a d m1 a5P r ic e e a r n in gM r ka t iop r ic e p e r s h 8a .r4e o f C s 3 .9 2 4 3 .5 3 .2
EPS 0 . 6 2 1 3 . 5 4 8 3 8- 17 . 7 5 - 2 . 2 4 - 1 . 4 8 - 2 . 7 0 2 7 0 2- 17 . 04 35 - 2 . 4 1 3 7- 19 . 7 5 - 1 .8 2 8 5 7 1 4 2 9

N i l o y1 5P r ic e e a r n in gM r ka t iop r ic e p e r s h 1a 1r e1 o f C s 89 7 4 .2 5 4 4 .2 5 76
EPS - 1 5 . 6 5 - 7 . 0 9 2 6 5- 12 6 . 1 9 - 5 . 4 9 7 2 2 -01 50 0 . 60 3 - 7 . 4 0 2 7 9 1- 86 . 29 55 - 4 . 9 4 4 1- 13 0 . 6 - 7 .1 6 9 8 1 1 3 2 1

P a d m1 a6M a r k e t r a t io M k t p r ic e p e r s h 8a .r4e o f C s 3 .9 2 4 3 .5 12
B o o k v a lu e p e 1r 4C . 9s 7 0 . 5 6 1 1 2 28 2. 2 5 0 . 4 7 5 1 5 1 65 . 17 57 0 . 5 9 0 8 4 15 9. 35 2 0 . 6 5 7 8 93 5. 5 7 3 .3 6 1 3 4 4 5 3 8

N i l o y1 6M a r k e t r a t io M k t p r ic e p e r s h 1a 1r e1 o f C s 89 7 4 .2 5 4 4 .2 5 76
B o o k v a lu e p e 1r 0C4 s. 3 6 1 . 0 6 3 6 2 58 95 . 5 6 1 . 0 4 0 2 0 57 72 0. 24 6 1 . 0 2 7 5 3 96 40 4. 41 9 0 . 7 3 1 5 42 96 . 7 5 1 .5 2 7 6 3 8 1 9 1

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Appendix-B

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