Introduction
In our project we have choose two companies that are engaged in cement manufacturing. They are i) Lafarge Surma Cement Ltd. and ii) Meghna Cement Mills Ltd. As per requirement, we have conducted ratio analysis and given interpretation. We chose Lafarge Cement Ltd as our main company and Meghna Cement Mills Ltd. as our benchmark company. Before telling the reasons behind this decision, we would like to give some brief information on these two companies.
Brief review of Lafarge Surma Cement Ltd.
Lafarge Surma Cement Ltd. (LSC) was incorporate on 11 November 1997 as a private limited company in Bangladesh under the company Act 1994 having its registered office in Dhaka. On 2003, Lafarge Surma Cement Ltd. was made into a public limited company. The company is listed in Dhaka and Chittagong stock exchange. Today, Lafarge Surma Cement Ltd has more than 11,000 shareholders having more than 58 million shares outstanding.
The company contributes with some USD 50-60 million per annum worth of foreign currency savings for the country by supplying clinker to other cement producers in the market. The company also contributes BDT 1 billion per annum as govt. revenue to the national exchequer of Bangladesh. About 5,000 people depend on this company directly or indirectly for their livelihood. Brief Review of Meghna Cement Mills Ltd. Meghna Cement Mills Ltd. (MCM) was incorporate on March 1992 and started their production on January 1996. The company was listed in Dhaka Stock Exchange in 1995 and Chittagong Stock Exchange in 1996. Today, Meghna Cement Mills Ltd has more than 22.5 million shares outstanding. During the year 2010, this company contributed an amount of BDT 1.34 billion to the National Exchequer in the form of tax, customs, duties, VAT etc. Reasons behind choosing these two companies: Despite of having many similarities between these two