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Financial Analysis of Heidelberg Cement, Bd

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Chapter-1: Introduction
Chittagong Cement Factory one of the pioneer cement industries in the country was established in 1966 and was placed under control and management of Bangladesh Mineral Oil and Gas Corporation and subsequently of BMEDC. The factory was converted into and incorporated as a private limited company on 30 June 1979. Thereafter the company converted into a public limited company in February 1989 with the shareholding of 51% by Bangladesh Chemical Industries Corporation (BCIC), 34% by General Public and 15% by officers, staff and workers of the company. Under the privatization policy of the Government, BCIC sold and transferred its 51% shares to Local investors on 27 June 1993.

HCBL is subsidiary of HeidelbergCement …show more content…

To capture the uncertain future, a scenario analysis has been prepared. The growth rate of turnover, dividend under Gordon Model and retention method, sustainable growth rate of sales and the GDP growth rate were taken under consideration with an obvious choice of practicable growth rate. Plug variable was ascertained based on the debt: equity ratio to specify the projection like dividend policy and/or capital structure policy.

1.3 Methodology
Analysis Technique
Balance sheet analysis, cash flow analysis, ratio analysis of Heidelberg Cement Bangladesh Ltd.has been performed for a period of six years and pictorial representation such as bar charts, trend lines are used to present the results and interpret effectively. Furthermore, Microsoft Excel has been used for forecasting the future stock price under different growth models by the help of current and past data. To capture the uncertain future scenario analysis has been performed.

Nature and Sources of Data
The financial analysis of Heidelberg Cement Bangladesh Ltd. is performed by using secondary data only. Annual Reports from year 2003-2008 are collected from Dhaka Stock Exchange and also data from websites of Dhaka Stock Exchange (dsebd.com), Heidelberg Cement Bangladesh Ltd., newspapers are conferred with while analyzing the financial position and finding various news related to the firm. Secondary Data of recent 6 years are utilized in this study for

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