RAK Ceramics RAK Cerami Ceramics cs Compan Company y is named named after after its founde founderr Ras Al Khaimah in 1991. RAK Cera Cerami mics cs (B (Ban angl glade adesh sh)) Limi Limite ted d is the the coun countr try’ y’s s lar largest gest and and most most respected tiles and sanitary are !rand. "he Company as incorporated in Bangladesh on #$ %o&em!er' 199 as a pri&ate limited company under the Compan Companies ies Ac Act' t' 199 199 as a *A+,B *A+,Bangl anglade adesh sh -oint -oint &entur &enture e pro-e pro-ect. ct. t has started
its
commercial
production
on
1#
%o&em!er
#///.
t has con&erted into pu!lic limited company on 1/ 0une #// and listed in the stoc e2changes of Bangladesh on 13th 0une #/1/. "he Company has anchored
this
position
on the !asis !asis of its mare maret,l t,lead eading ing capaci capacitie ties' s' orld, orld,cl class ass manufa manufactu cturin ring g technologies' high production utili4ation' optimi4ed cost structures' &i!rant sales and distri!ution netor and ro!ust customer engagement programs. "he core !usiness of RAK Ceramics (Bangladesh) Limited is to manufacture and sale of ceramics and fully &itri5ed tiles' !athroom sets and all types of sanitary are."he Company has o&er #/// models acti&e in the ceramic and porcelain tile !usiness and regularly add se&eral ne designs to the product portfolio. RAK Ceramics (Bangladesh) Limited is the maret leader ith around #67 maret share in tiles sector and around $67 maret share in sanitary are sector !ased on production capacity. "he current maret for the Company incl includ udes es
const constru ruct ctio ion n
de&e de&elo lope pers rs''
go&e go&errnmen nmentt
inst instit itut utio ions ns
and
loca locall
consumers. "he Company has a strong maret reputation in Bangladesh ith a ide netor of 9 dealers nationide and recei&es strong support from RAK Ceramics 8C' *A+ in terms of technological no,ho' management and mareting support.
1
"he onership of RAK Ceramics Ceramics (Bangladesh) Limited comprises comprises ith :6.97 held !y the sponsors (:1.$:7 !y RAK Ceramics 8C' *A+ and .##7 !y local in&est in&estor or ;r. ;r. .A .A.K. .K. +ramu +ramu44 44ama aman) n) and remai remainin ning g # #.11 .117 7 is holdin holding g !y generalpu!lic including institutional in&estors as on
Financial Statement (2015)
#
3
Financial Statement (2014)
6
Financial Statement (2013)
$
:
Financial Statement (2012)
9
1/
Qui ckRat i o Current Assets − Inventory Inventory Current Liabilities
2015=
6741661301 −2239844230 4218330929
= 1.07 times
2014=
7123130156 −1835354727 3538079861
= 1.49 times
2013=
5827334588 −1858379882 2643929982
= 1.50 times
2012=
4913984328−1777888718 2456242485
= 1.28 times
2011=
4768443264 −16580625698 2077509374
=1.50 times
=uic ratio measures Company’s a!ility to meet its short,term Comment : o!ligations using its most li>uid assets. A higher >uic ratio indicates greater short,term 5nancial health. 17 >uic ratio is accepted. "he ratios indicate that RAK Ceramics had enough li>uidity in #/11 that is 1.6/. t decreased in #/1#' again ept increasing till #/1. But it signi5cantly lessened in #/16 that as 1./:. 11
Set t l ementper i odofr ecei vabl es Trade Receviables x 365 Sales Revenue
2015?
638387373 5059300403
365 365
x
.
? 4.0days
2014?
580719781 5047345373
365 365
x
? 41.99days
2013?
720608027 4687262509
365 365
x
? 5.11days
2012?
621510397 4908171279
365 365
x
? 4.22days
2011?
526123351 4580008209
365 365
x
? 41.93days
Comm mment :t
shos' on a&erage ho long it taes to collect cash from credit
customers. "he ratio shos' in #/11 RAK too 1.93 days on a&erage to collect due recei&a!le' recei&a!le' $.## days #/1#' !ut it increased at 6$.11 days in #/13 hich indicates
1#
lac of proper credit control. t came to an accepta!le le&el in #/1 !ut rises again in #/16. t is a !ad sign.
Set t l eme mentperi odofpayabl e Trade Payables x 365 Purchase Purchase
2015=
640626199 1779555491
365 365
x
= 131.4 !a"s
2014=
355096186 1466848016
365 365
x
= 88.3 !a"s
2013?
27661728
14.42!a"s !a"s ? 14.42
2012=
159789966
= 39.25 !a"s
2011=
306963146 1310179114
365 365
x
= 85.52 85.52 !a"s !a"s
Comment : "he ratio represents represents the credit period taen !y the company from its suppliers. A long period represents a source of free 5nance.
13
"he ratio shos' in #/11 RAK got 6.6/ days on a&erage to clear its de!ts. t lessened in #/1# and #/13 to only 1.# days. But the condition changed in #/1. Company got the ma2imum period to pay its due 131. days in #/16. t is a good sign.
Ret#rn $n ca%ital em%l$"e! (R&C') Operating Operating Profit Profit x 100 Share Share capital capital + Reserves Reserves + Non −current current liabilities liabilities
2015
1455987536
100 100
x
3368506110 + 1473647979 + 496435996
?27.27
2014
1057321166 3368506110 + 1473647979 + 78418185
100 100
x
? 21.49
2013
3062278290 + 1473647979 + 56957686 1041025563
100 100
x
¿
? 22.7
2012
910508985 2783889350 + 1473647979 + 139729663
100 100
x
? 20.71
2011
994864945 2530808500 + 1473647979 + 167573712
? 23.85
1
100 100
x
Comm mment : "he ratio is used to sho ho
[email protected] its in&estments are used to create a pro5t. A good RC+ is one that is greater than the rate at hich the company !orros. !orros. ere' e can see in #/11 RC+ of RAK as #3.67' decreased to #1.97 in from #/1# to #/1. But it cheered up in #/16 !y #:.#:7. "he progress rate of the company is not pleasura!le.
+arnings per hare (+8) Earnings Earnings available available ¿ ordinary ordinary shareholder shareholderss
¿
Nuber of ordinary ordinary shares ∈issue
1094339767
2015
3368506110
= 0.32t*
500210985
2783889350
2014
488074917 3368506110
= 0.14t* 500210985 2783889350
2013 = = 0.28t* 2012 ? 0.18t*
16
641737193
2011
2530808500
= 0.25t* C$mment '+S measures ho much pro5t earned on !ehalf of each outstanding shares issued for the accounting period. "he ratio is shoing that in #/11 RAK had /.#6 t earning on per outstanding shares that decreased !y /.1 t in #/1#' raised in #/13 !y /.# t' again collapses dramatically in #/1 !y only /.1t' !ut 5nally progressed in #/16 !y /.3#.
Shine%#*#r Ceramics hin hinep epu uur ur Cera Cerami mics cs Ltd. Ltd. (CL (CL)) is the the lead leadin ing g Bone Bone Chin China a 8orce orcela lain in ta!leare manufacturer and e2porter of Bangladesh. hinepuur Ceramics has !een a successful !rand' thans to its state,of,the,art manufacturing facilities' a!out #':// highly silled moti&ated people and cutting,edge technology. Drom its inception' CL has !een a!le to gain su!stantial headay against its competitors and ac>uire commenda!le maret share from its competitors !oth in 8orcelain and in Bone China. "herefore CL’s position in the orld ta!leare industry is &ery high' ith its orld,class product >uality' hich helped to attract and retain leading century,old !randed companies as its !luechip customers from *A' Canada' *K' Eermany' Drance' taly' 0apan' eden' %oray'
ualit >uality y ta!le ta!lear are e produ products cts.. n Bangla Banglade desh' sh' CL is the leader leader in Ceramics’ ;aret and rans as num!er 1 in terms of sales re&enue and maret share. share. t has more than #6/ dealers to sell and distri!ute CL product in Bangladesh ;aret. n the hospitality sector' all the international hotels in Bangladesh use CL products.
1$
Financial Statement (2015)
1:
1
Financial Statement (2014)
19
#/
Financial Statement (2013)
#1
##
Financial Statement (2012)
#3
Financial Statement (2011) #
#6
#$
Qui ckRat i o Current Assets − Inventory Inventory Current Liabilities
2015
1060146 −634488
? 0.27 times
2014 1044626 −671352 ? 0.20 times
2013
1710385576 −912642408 1756989717
? 0.45 times
2012
1796412804 −845059407408 1772067117
? 0.54 times
2011
1617231951− 891674750 1648906953
? 0.44 times
nt :=uic ratio measures Company’s a!ility to meet its short, 1. Comme term term o!liga o!ligatio tions ns using using its most li>uid li>uid assets. assets. A higher higher >uic ratio ratio indi indica cate tes s grea greate terr sh shor ort, t,te terrm 5nan 5nanci cial al heal health th.. 17 >uic >uic rati ratio o is accepted.
#:
"he ratios indicate that hine 8uur 8uur Ceramics Ceramics had lo li>uidity in #/11 #/11 that is o.6 and #/1# its li>uidity is as nearly same that is /.6 and up to #/16 its li>uidity is o.#: o.#: as e no that >uic ratio 17 is is accepta!le so e can’t accept it.
Set t l ementper i odofr ecei vabl es Trade Receviables x 365 Sales Revenue
#/16G
179691 1119480
365 365
x
? 58.59 !a"s
#/1G
157873 1263135
365 365
x
? 45.2 !a"s
#/13G
674987355 1704567234
365 365
x
? 144.54 !a"s
#/1#G
853413145 1942350752
365 365
x
? 10.37 !a"s
#/11G
587933889 1901444562
365 365
x
? 112.8 !a"s
#
Commentt shos' on a&erage ho long it taes to collect cash from credit customers. ncreasing account recei&a!le collection period is usually a !ad sign. "he ratio shos' in #/11 hine puur too 11#.$ days on a&erage to collect due recei&a!le' 1$/.3: days #/1#' !ut it decrease at 1.6 days in #/13 hich indicates lac of proper credit control. t came to an accepta!le le&el in #/1 !ut rises again in #/16. t is a !ad sign.
Set t l eme mentperi odofpayabl e Trade Payables x 365 Purchase Purchase
2014=
549161698
= 543.84 !a"s 2013
469825285
= 242.89 !a"s 2012
445028986
= 248.95 !a"s
2011
291823065
? 153.4 !a"s
Comment : "he ratio represents represents the credit period taen !y the company from its suppliers. A long period represents a source of free 5nance. "he ratio shos' in #/11 hine puur got 163.$ days on a&erage to clear its de!ts. t increase increase in #/1# that is is #.96 days and #/13 #/13 is ##.9 days. #/1 it more increase it is a !ad sign. #9
Ret#rn $n ca%ital em%l$"e! (R&C') Operating Operating Profit Profit x 100 Share Share capital capital + Reserves Reserves + Non −current current liabilities liabilities
2015
190614 1469661 + 2966690 + 807295
100 100
x
3.4
=
#/1G
258365 1469661 + 2966690 + 534600
100 100
x
? 5.20 #/13G
370026306 1469660550 + 2966690015 + 629397933
100 100
x
? 7.30 #/1#G
568165442 1277965700 + 2907734989 + 803483989
100 100
x
? 11.39 #/11G
532318752 1111274530 + 2953318420+ 1005382500
3/
100 100
x
? 10.50
Comment ; "he ratio is used to sho ho [email protected] its in&estments are used to create a pro5t. A good RC+ is one that is greater than the rate at hich the company !orros. !orros. er ere' e can can see see in #/ #/11 11 RC+ RC+ of hin hine e puu puurr as as 1/ 1/.6 .6/7 /7'' incr increa ease sed d to11.397 in from #/1# !ut decrease :.3/7 and up to #/16 it is decrease!le. decrease!le. "he progress progress rate of the company is pleasura!le. pleasura!le.
+arnings per hare (+8) Earnings Earnings available available ordinary shareholder shareholderss ¿ ordinary
2015:
¿
Nuber of ordinary ordinary shares ∈issue
5284
1469661
=0. 00t k. 2014:47356
1469661
=0. 03t k. −11801568
2013:
1469660550
=,. 01t k. 2012:90285057
1277965700
=0. 07t k. 31
2011:168768102
1005382500
=0. 17t k. Comment :'+S measu measurre sh sho o much much pro5 pro5tt ear earned ned on !eha !ehalf lf of each each outstanding share issued for the accounting period. "he ratio is shoing that in #/11 RAK had /.1: t earning on per outstanding shares that decreased !y /./: t in #/1#' decrease in #/13 !y ./1 t' again coll collap apse ses s dram dramat atic ical ally ly in #/ #/1 1 !y only only /./3 /./3 t' t' and and #/ #/16 16 it is mor more decrease!le that is /.// t.
C$m%aris$n $- Financial Rati$s #ic* Rati$ %ame of the rgani4ation
#/16
#/1
#/13
#/1#
#/11
Remar’s
RAK Ceramics
1./:
1.9
1.6/
1.#
1.6/
hine 8uur Ceramics
/.#:
/.#/
/.6
/.6
/.
Eood sign Bad sign
Settlement %eri$! $- recei/ales %ame of the rgani4ation RAK Ceramics hine 8uur Ceramics
#/16
#/1
#/13
#/1#
#/11
Remar’s
$./$ 6.69
1.99 6.$#
6$.11 1.6
$.## 1$/.3:
1.93 11#.$
Eood ign Bad ign
Settlement %eri$! $- %a"ales
3#
%ame of the rgani4ation RAK Ce Cerami amics
#/16
#/1
#/13
#/1#
#/11
131.
.3$
1.#3
.3$
131.
63.
##.9
#.96
163.$
hine 8uur Ceramics
Remar’ s Eood sign Better
Ret#rn $n Ca%ital 'm%l$"e! %ame of the rgani4ation RAK Ceramics hine 8uur Ceramics
#/16
#/1
#/13
#/1#
#/11
#:.#:7
#1.9 7 6.#/7
##.$:7
#/.:17
#3.67
:.3/7
11.397
1/.6/7
3.$7
Remar’ s Eood sign Bad ign
'arnins +ers Share ('+S) %ame of the rgani4ation RAK Ceramics hine 8uur Ceramics
#/16
#/1
#/13
#/1#
#/11
Remar’s
/.3# /.//
/.1 /./3
/.# ,/./1
/.1 /./:
/.#6
Eood sign Bad ign
&%ini$n in hich C$m%an" e ill in/est Drom the comparison e can see that the RAK ceramics ceramics ha&e a good li>uidity on their hand in the last year #/16 that is 1./: here hinepuur had /.#: li>uidity in last year so e can measure that RAK staying in a good position then hinepuur. hinepuur. hinepuur also tae tae more days rather than than RAK ceramics ceramics e see that at the last year it too 11#.$ days to collect cash here RAK too $./$ days it is a !ad sign for hinepuur ceramics. n terms of RC+ +8 RAK as a !etter position than hinepuur !ecause e can see that hinepuur RC+ as 3.$7 in last year it means its pro5t is &ery lo in terms of long term capital in&ested here RAK had #:.#:7 RC+ its pro5t is !etter. n terms of +8 the hinepuur pro5t as /.//t on !ehalf of each outstanding share in the last year here RAK as /.3#t pro5t. o o!ser&ing 33
the o&erall situation e can say that if e in&est in RAK e ill get more pro5t on !ehalf on each outstanding share their li>uidity is also high so its ris is lo than hinepuur its RC+ is also situated in a !etter position so e decide that e ill in&est our money in RAK Ceramics. Ceramics. Conclusion
The two companies companies are very famous & renowned in the ceramic industry industry by serving serving their good products and services but in the financial term RA is a good goo d position rather than !hinepu"ur so we choose it for our investment#
3
