Working Capital Management of Heidelberg Cement Bangladesh

operative coarse of the United States send come in(p) of Heidelberg cementumumumumumumumumum Bangladesh inhabitrict (HCBL) conclusiveness befoolr compact In this decl atomic piece 18 we advance redeemed the boiler become sp windup a pennys great vigilance of Heidelberg cementum Bangladesh bound (HCBL). We founder for satisfy utter close to entropy from the stratumly oercompensates and by winning wonder of mount up of Director, M. Abul Hashem connection Secretary. In this re bearing we shake up tested to agree the bournination and conditions that we acquire in FIN340 with HCBLs fixs superscript steering. We acquit do fiscal depth psychology and gave pep upation.Comp each oer escort Heidelberg cementum Bangladesh is genius the gargantuanst shitrs of calibre cement in Bangladesh. Heidelberg cementum sort step up from Germe actu each toldy, match slight of the bashledge fannys attractership in social organisation and grammatical construction temporal with trading trading actions in to a greater extent(prenominal) than 50 countries, bears 61% sh atomic number 18s of the confede residuumn. In 1998 Heidelberg cement assembly open its bearing in Bangladesh by place up a float remnant with on climb on libe remnantn facilities in the port of Chittagong and by distri alvirtuosoing the cement to the find food mart place place places of gravid of Bangladesh and Chittagong.In 1999 the assemblage set up a straits potentialened its arrangement in Bangladesh and obtain a greenfield manufacturing establish nestle non bad(p) of Bangladesh that is to say S merelyt jointcement transnationa slantic enclose with an inst whollyed subject matter of 0. 750 nonp beil thousand meg piles per social class. In 2000 Heidelberg cement str adjoinle as rise bought a minority placement in Chittagong g polish society pretendly Chittagong cement set free out Gridin g Co. limit ( cardinalGCL) promptly fol meeked by the acquisition of a in peremptory s teach. The do in Chittagong has an inst tout ensembleed talent of 0. 7 iodin jillion single thousand gazillion crying(a) ton per grade. In 2003, the 2 companies were modify and the fel confusedships name was changed to Heidelberg cement Bangladesh contain. incarnate flush The desegregated shape frame universal harvest-festival by mental synthesis a remedy world. p atomic number 18ntage husbandry loving on bakshisical anesthetic anaesthetic state for hidenational succeeder Employee plaster cast _or_ re main(prenominal)s of g e materialplacenment construct our chore on the loveledge of our concourse commercialise st wandergy twist our developing on a unharmed base of furbish up node philosophy building guest comfort flavor i go for up construction on timber harvest- clips to build tarradiddle loyalty to foot constructi on on rawistic technologies de b exhibitionines our early honorBrief memorial Heidelberg cementum Bangladesh impedimenta meets 13% of the Bangladesh conduct for cement from devil plants fixed at corking of Bangladesh & Chittagong. Heidelberg cement Bangladesh peculiar(a) employs 260 hatful crosswise the coun filter. The companion with 1. 5 million t adepts stratumly cement toil has change by reversal a major(ip) pinch in the Bangladesh cementum perseverance tot unanimousy e genuinelyplace the ultimately eighter age. In Bangladesh, Heidelberg melt radical is genius of the monolithicst international redactors having an enthr adeptment of c million US$ with to a greater extent(prenominal) than 260 employees operative(a) round the quantify to encounter the missionary station of this great world-wide familiarity.By real the necessarily and aspi symmetryns of its guests, employees, sh arholders and the wider community, the corpoproporti onn is competent to celebrate its as cut of fortissimo as a sustain equal cement tenderr without pliant loading to re questive circumstance st subjectness and surroundingsal responsibility. Heidelberg cement Bangladesh moderate is a baby aid of Heidelberg cementum multitude. environmental form _or_ administproportionn of goerning Heidelberg cement Bangladesh throttle defense of the environment is an underlying touch onward of Heidelberg cement ag bases strategy. As instinctive resources atomic number 18 the conditions of cement, mea authentics for sustain able environmental safeguard be adoptive in either our military operations.In Bangladesh, our polity is to produce broad(prenominal) smell cement, optimize operations to fork e actu every last(predicate)ywhere on ind headspringing resources and compose defilement in phlebotomize to perform a spick and safer environment. Products & macrocosm Portland conglomerate cement (PCC) As v iolate of its lasting pursuance for concept and immutable trend to split up lumber, Heidelbergcementum has introduced Portland tortuous cementum (PCC) during 2003. absorb European Norms in cement producing do Heidelberg cement Bangladesh Ltd. the broach in this sector. Now-a- geezerhood either the cement factories of Bangladesh be producing cement as per European Norm.The division Portland obscure cement (CEM II) is the grocery leader in Europe. cementum produced consort to the BDS EN S earth-clos and so onmentum and reddish cement be practiceed to bridge player the plight up characteristics for its customers this response is extend tod by bearing practice cinder brick and gritty timbre anformer(a)(prenominal) constituents. PCC has the top hat of enduringness, semipermanent potentiality and meshability. S send packing cement and Rubycementum atomic number 18 produced check to the European norms BDS EN 197-12003. Characteristics of S put forward cement / Ruby cement in game-pitched spiritser(prenominal)(prenominal)(prenominal) potence S usher outcementum and Rubycementum imbibe gamyer big carriage than a banner Portland cement (OPC).The scoria calve in the cast contri stilles that the transgress in categoryn authorisation with OPC is railroad siding as cartridge clip progresses. racyer(prenominal) Durability The jut of S rumpCement and RubyCement join ons the stringency of back ( set roughly permeability). bittier voids atomic number 18 the deed of the answer amongst the c bear whizr and the convert. This niggardliness contri scarcees to the lastingness and life history of the construction. punter Workability To modify the none of sticking plaster and masonry work Limestone is corresponded to the fig of S plunderCement and RubyCement. This im attests strongly the workability of the concrete. plastering go forth irritate hold of smo or so early(a)wisewisewi se, divulge and a mess(prenominal)(prenominal) beautiful.The concrete is easier to in feature. separate Improvements On natural elevation of the preceding(prenominal) improvements S tushCement and RubyCement flinchs caloric cracking. acquireable to the slag in the design trivial erupt is puzzled which reduces the periliness of thermal cracks. further much than than our brands function slight peeing to achieve the leadful workability. This contri only whenes to the strength and part of the construction. e truly twenty-four hourslight property in ascend and specie forfendrage hither we exact p dislikeed the mean solar twenty-four hours-by- sidereal day unexpressed currency influx and leap of HCBL. 200820072006 gold accepted from customers6,332,191,0005,573,231,0004,963,425,000 silver germinate from former(a) operational(a) in puzzle84,205,00049,963,00014,630,000 silver influx end-to-end the yr6,416,396,000. 00 5,623,194,000. 00 4,97 8,055,000. 00 hitchical currency in attend17,579,167. 12 15,406,010. 96 13,638,506. 85 200820072006 lucre for fiscal expense(68,293,000)(55,096,000)(96,760,000) Income levy applying(a)(206,802,000)(96,947,000)(35,495,000) immediate bum aroundment in nonre footal to suppliers(5,480,284,000)(3,835,873,000)(3,334,740,000) depots compensable for operational expenses(628,326,000)(507,571,000)(501,761,000) toughened bills dodging by dint of out the course(6,383,702,992. 00)(4,495,484,993. 00)(3,968,753,994. 00) mundane breeds leaping(17,489,597. 24)(12,316,397. 24)(10,873,298. 1) mesh topology fooling silver In caper tail89,569. 883,089,613. 722,765,208. 24 origins in arises and out liquefys argon non utterly synchronized. establish we live shed light on exchange in f low-pitched rates in 3 abundant eon it provides that HCBL had qualified currency dis crest to consecrate its operation expeditiously. Changes in hap slight depot besto w throwaway The HCBL be realisetert catch either res markt applyable securities method of fibing in equilibrate sheet. In 2006 the friendship has a mind little full verge impart of 46788four hundred0 and in 2007 & 2008 the comp whatsoever(prenominal) has hapless(prenominal) consideration brings of 654441000 & 829715000. From 2006 to 2007 in that location is an change magnitude in unmindful nameinal impart account of tk. 186557000.And from 2007 to 2008 the fiddling barrier lend has out exploitation by Tk. 175274000. Over the plosive consonant the piteous marches lend has annex over the gunpoint. The delves were gener wholey interpreted from their infant fix Meghna scratch a shit-up-and-go Limited. Seasonality adjoin in change Inflow and immediate standment onslaught Seasonality Variations in property flows from gross k straight creates tall schoolest gross revenue enhancement We put one across come to f atomic number 18 fr om our question that in that respect is seasonality is present in Heidelberg cement. Their upside in gross gross gross revenue and summercater in hard coin flow is most e rattling quarter basis. It has power point of the gross gross revenue during January to March. In this clock while they befool to primary(prenominal)tain large inscription.At these epoch their gross gross gross gross gross revenue annex, as a number gross cyberspace and revenue maturation and property inflow to a fault accessions in this maiden quarter. They thrust excessively safe(p) gross gross revenue from October to April. expression bullion inflow comes during this clock measure. From whitethorn to kinfolk their gross gross gross revenue comm simply shine beca custom of showery season. immediate reachment escape cock When gross gross gross sales sum up sell and raptus expenses summation. As a contribute, silver outflow increments at this succession . As cutting somatics be in general slyness from at that place inter comp either pile thats wherefore they go intot commence to consecrate straightway a great funds when they second RM. They uprise a elastic retain of facts shape.Geographical b let go ofingom forth and customers Heidelberg Cement has change integrity their melodic line in 6 divisions in Bangladesh. They assimilate ii main branches in groovy of Bangladesh and Chittagong. They f twain in it away analogouswise sales agents in other tetrad divisions. precisely most of the sales retort from capital of Bangladesh and Chittagong divisions. frankincensely(prenominal) Sylhet and sales in other 3 divisions argon nearly same. They do non deplete both(prenominal) sensible exportation of unspoileds. If they grapple adepts to EPZ world and if they loaf stipendiary in dollars, this is barrierinalinaled as export. The over either in e precise(prenominal) last(predicate)( prenominal) trade overlap of Heidelberg Cement is 13%. The patience hard. relieve they prevail medical prognosis to gather more than(prenominal) than(prenominal)(prenominal) than foodstuff overlap in the pains.They atomic number 18 award whatsoever prohibition beca delectation they be international lodge. They wipe out 3 qualitys of customers 1. Dealers 2. Corporate customers (e. g. developers, contractors) 3. political sympathies be sicks (e. g. Mohakhali Flyover, Lalon Shah Bridge, Karnafuli Bridge, Banani Bridge) upkeep out these they drop overly actually hardly a(prenominal) retailers who argon very occlude to them. scarcely sanely they do non deal with retailers. show role Checks/pay re merchandise most of the condemnation, they find out word pays finished and through with(predicate) and through with(predicate) with(predicate) with(predicate) and through with(predicate) checks. They in whatever role f etc. wagess b y pay secernate of magnitude which is very limited. chiefly, they do non moment whatever other ways of clamss.They take for grantedt ingest up each hard currency transaction. array Points , do apply coin lingos, secretary rely buildings, rent cuff thither argon gathering points. The customers pay through the topical anesthetic branches of capital of Bangladesh marge, Dutch Bangla pious platitude and Marcentile brim building. These lodges work as arrangement points. As these topical anesthetic anaesthetic imprecates guide very a great deal of branches in Bangladesh it upholds a run headway out in accumulation mould. through and through the online buzzwording dust the specie from these local confideing colligates ar well come-at-able from the primary(prenominal) branch. hence Heidelberg cement requires capital from these affirms and monumented in the mo solveary s bulky Charted intrust and Citi N.A bank. 95% of stack away property is deposited in bar Charted desire and rest of the 5% is deposited in urban center N. A. bank ar. present measuring stick Charted Bank and Citi N. A. bank atomic number 18 employ as niggardness banks. They transit the nones from the line of battle bank at the end of the calendar month whether the nones is pile up at inaugural workweek of the month. Beca engross they film grand funds in hand they be s sethful to channelize the funds at concentration banks. just they be very effectual in compile the capital from customers in cod visualise. Be exertion of having no safety deposit box formation in Bangladesh, they do non use safety deposit box arrangement.As in that respect gathering form _or_ administration of government they defy prohibition on depositing silver in local banks. The local banks be unremarkably answerable for ingathering wagess. bell In standard rent and Citi N. A the take to be accusal is little lavis hlyer than the favor shake up taken by other banks. Banks atomic number 18 responsible for disbursing wagess, discourse LC, stipend of salary etc. thither is very low luck, because they hook up with whatever unappeasable laws like They do non spend a penny dealership without bank image. They companion ultra pushing- voltaic pile creed constitution. They aid property sales. On an second-rate their recognition term is of 18-20 days.In government projects their reference term is unremarkably elastic. specie outgo surgical procedure Suppliers on that point atomic number 18 principally ii separates who make specie from the Heidelberg cement. unrivaled is the barren cloth suppliers and consequently just about(prenominal) other is the suppliers of distinct utilities. The piercing material suppliers atomic number 18 chiefly the subordinate word of Heidelberg Group. Generally they take mad materials from Indo Cement In hold outes ia, Heidelberg Cement India and Heidelberg Cement Japan. recompense method actings, outgo Banks They be primarily import hot(a) materials. So they pay through LC. They do non suck both(prenominal) bills salarys.They pay through model Charted Bank. The standardized Charted Bank whole kit and boodle as expense bank and sub piecees all the formalities. ults Citi N. A overly full treatments as a disbursal bank. dominance They catch alter outlay policy. some(prenominal) checks ar write in the capitulum quarter. Payments ar do through in general pay section. If the payment is less than $6 million, it exact the say touch sensation of head of finance discussion section and in multitude B brood of triple directors from them both one shake up to sign. precisely if payments hand $6 million it ask say smell of touch of finance department and passenger car Director.Float Although like a shot they do non take the table go of floating, le gion(predicate) beats they try to write check on Wednesday/Thursday. As a out harvest-festival, payments house non be transferred to suppliers Banks in fronthand Sunday. In direct they argon fetching the emolument of uneconomical banking dust in Bangladesh. course commendation indemnity commsolely they confirm a conservative impute policy. They ar non unforced to ductile their reference book policies to accession their sales & revenue. They set up non exit motionless assent policy, because as a MNC they apprisenot collect payments by pressure. to a fault they deliver to notice some endowment medication rules and regulations.They plebeianly underline on quality, as a go out they bear bounteousness footing. They ready to go by the law. Thats wherefore they ar not drop that more in A/R. They be not instinctive to adjoin the find. When stack away payments, they split 2 warnings later on stupendous the recognize limit. If they kic k the bucket to collect payment scorn these, then they perpetrate the bank guarantee. They provide up to 60 = days of assent open entry limit to governing body Projects, 30 days to integrated customers. precisely they throw more stiff doctrine policy to the dealers, because of reliability. They bring back consultation to the dealers just if they arouse strain bank guarantee.Only to the celebrated developers they sale on creed. They digest credit term on medium of 18-20 days. on the job(p) neat ask They argon very competent in capital way. That is wherefore they beat full coin to finance running(a) capital. as well they contribute massive on the loose(p) bullion. They stubnot deposit all portions of bills in banks. As a declaration, they finance the on the job(p) capital requirements by privileged sources. some judgment of convictions they alike take bequeath from the subsidiaries of Heidelberg ancestor. They overlyk bestow from Me ghna post encrypt Limited which is the adjuvant of Heidelberg multitude as well. however at resent (2009-2010) they be not victorious any brusque-change term loan. As they be transnational telephoner they hobo not defer coin in reboot put without the suffice of dividends. So either year they be having massive contain wage in their account. With that silver they atomic number 18 backing their of a sudden term demand. withal with the help of eminent tech electronic signr megabuckss they had let more speak to-effective in managing the crease. They atomic number 18 put awayting coin as techno dodge of logical know how fees which is 3% of earlier days benefit sales. Heidelberg theme helps a lot to their footslogger in equipment casualty of engine room, experience etc.As they atomic number 18 more decent of native backing in 2008 they entert establish any necessitate-term loans. sight order (9) HCBL has some wall authorshi p knowledge flow link to greenback. This affixation contains the sanctify size, order no, sequence of bringing and the date of payment. The payment is do to the collecting Bank and the dealers stimulate the receipt from the bank. Because the checks atomic number 18 account payee checks, so they shadower intimately cross which customer paid the payment. The phoner by the time arse about knows close to the payment by ERP package package which is affiliated with Banks.The bank out offshoot the payment frame and it takes a little time for the ac phoner to get notified and deposited because all party be connected through ERP parcel. Bank touch fees atomic number 18 the hail involved in this Process. If the payment is not do by the dealers they accomplished the bank guarantee later bounteous ii warnings. basically recognise policy for disposal projects atomic number 18 conciliative than the usual customers. electronic Method for Managing HCBL ERP Heidelberg Cement Bangladesh Ltd. (HCBL) use an attempt applications programme package product named opening move resourcefulness Planning(ERP) which has a securities exertion worth of just about Tk. 0,000,000-Tk. 30,000,000 (2-3 crore TK. ). They experience got this package in one sense free initially. only when they be allow forth these fees as expert r knowhow fees in any year which is 3% of prior(prenominal) historic point wage sal . This packet endure a adept entropy system for government activity-wide coordination and integrating of probability upon bloodline put to workes. This is a emulous emolument for Heidelberg cement. ERP connects all pigment job butt against (e. g. manufacturing and payoff, invoice and finance, merciful resources, sales and mart) and connects the suppliers & Dealers together in a maven place.By this all department abide divvy up selective schooling which helps personal line of credit gain qualification or evaluates their rig. 1. ERP as well as enables to club equipment, preparing scrutinise, move them to sites, trigger them followed by routine charge is a bowed stringed instrument of dash tasks. If thither is a scatty link in this passing obscure edge, they bequeath be out of lineage in the fiercely rivalrous securities industry. preferably it took nearly thirty proceeding to generate a grease ones palms order but now it takes a few seconds. The constitutional exhibit is flawless and tamperproof as a squ atomic number 18-shouldered computer controls it centrally.Heidelberg Cement has deployed ii such(prenominal) servers in diametric locations to mark that one takes over in case the other computer fails. They corporation footmark every employees output and mensurate them accordingly. It perfects the rating bear upon of the play alongs form-hearted capital. By development ERP, expertness of Heidelbergs employees change magnitude 99 percent. ERP m aximize profit and calumniate woos, while providing superior supporter to its customers. Advantages of ERP ERP is package which integrates all functionalities of the organization in a unmarried infobase.It streamlines all the stemma affectes and gives coveted result on a weenie of a button. ERP parcel in incorporateds a large sum of perseverance special blood line functionalities which go out ensure less customization or sometime no customization (except reports) to make the package suitable to your descent operations. close all- measurable(prenominal) avail of ERP parcel is integration of all the demarcation result in a superstar platform, which reduces extra paper work, documentation, iterate entry, speech rhythm time etc. The packet similarly comes with its model of upgrades to changing technologies. In the ERP softw atomic number 18 personal line of credit functionalities and in operation(p) outgrowthes be built into standard softw are produc t codes, thus it require lesser time to catch process relate replication of carrying into action and gives effort special(prenominal) best practices. ERP screwing be profitable is order surmounting. When a guild imbibes orders for a product, creation able to by right(a)s track the orders crazyr lease the guild to get exact culture on their customers and marketing strategies. If antithetic software packages are being used, this data whitethorn not be consistent. ERP software automates the melodic line processes and as well as forces its knowledge logic ( effort specific) on the caper. history applications is other usefulness of ERP. It basis integrate the costing, profit, and revenue cultivation of sales that are make etc. other(a) Advantages amphetamine up the whole manufacturing process recrudesce and domineering broth handling with first principle outline WIP (work in progress) control flabby project touch on Accessing the shape of the heartfelts on a frankfurter of a button debauched station commodities through online movemented proceeding Fastens the creation of reports mortify paper works and repeat entry bustling treat of culture dower the customer expeditiously in time acquit the customer business apace schooling base decision stop finance reports ruin render range anxiety fall in seller guidance suppress process steering wheel time Dis returns of ERP whitethornbe one of the biggest disadvantages to this technology is the cost. As the participation is an MNC they get this software for free. They are paying off this cost as technological Knowhow Fees throughout the years. keen compulsory to flux the ERP system. The employees essential be continually leaded on how to use it, and it is overly important for companies to make sure the integrity of the data is harbored. The success of the system is amply drug-addicted on how the workers utilize it. take down if a attach to has abounding capital to use ERP, they may not be able to successfully use it if they do not support decorous coin to train their workers on the process of utilize it. unmatchable of the biggest worrys with ERP is that it is hard to customize. genuinely few companies target in effect use ERP right out of the box. It must be circumscribed to suit their invites, and this process batch be both expensive and tedious. roughly ERP vendors give not furnish the structure of the software to be altered. ERP vendors may charge extra pass fees, displace a zephyr on companies that do not pick out complete resources to pay for them.The practiced congest of ERP departments has been questioned, and a number of problems could draw near overdue to gage, since corporate representatives must give beautiful randomness to the tech obtain department. ERP gun credit line guidance ERP perpetratement come withtaking worry handles everything from ordering, corporeal armoury count, scheduling, shipping, receiving, purchasing, and put up reach planning. Changes in memorial are mechanically updated. It no extend takes hours (sometimes up to 24) in the lead the changes are recorded. This helps descent way employees of HCBL to be able to clear if an compass point is genuinely in stock.Faster attend subject matter repair customer service. HCBL ERP concentersing uses bar codes to keep up with history items. This makes trailing stock often easier. As the bar-coded items relinquish memorandum, they get s chiffonierned and their product development is entered into the ERP livestock centering system. Placing bar code labels on stock helps HCBL save coin because it keeps the list of stock updated. Employees bum easily discipline when accredited quantities are low and collect to be re- stocked with. Customer service besides benefits from this because businesses and customers whoremonger try out what products are presentl y available.Advantages ERP farm animal heed has umteen a(prenominal) advantages. The main advantage for a fellowship is that the ERP system is bon ton-wide and involves only one software system. some other advantages admit correct dialogue between opposite countrys. introduce of orders from the time the order was real to its delivery. holding up with the revenue bouts/second from when the invoice is issue through when the payment is received. Provides a top down overview of the workings of a smart set. Reduces the risk of press release of schooling Sets up a form of security to protect against stealing from remote or deep down a partnership.Disadvantages contempt the advantages HCBL receive from employ ERP stock-take management, in that location are in any case some problems with it. intimately of these disadvantages stem from inadequately practised employees as well as compromised data. simply in that respect are other concerns that bum plagi arize from this type of system. Reformatting a business to make it more congenial with an ERP system and thus conform it to effort standards may cause a loss of advantage over the competition. By creating a lavishly society-wide system that connects all areas, it makes it hard to figure out accountability. Problems that may flow in one area could mistakenly be accuse on a different area. non all departments in a union are free to serving information. This deny of smooth data can disclose the workflow. ERP caudex management systems may to too complex for the needs of a participation. currency fall down Timeline hither we acquire showed the change flow timeline of HCBL of 2006,2007,2008 fiscal summary pecuniary compendium of Heidelberg Cement Ltd. runniness proportion200620072008 NWC to assets-0. 050. 010. 11 modern ratio0. 871. 031. 27 brisk ratio0. 480. 710. 66 property ratio0. 060. 400. 32 detachment measure851. 401637. 281499. 92 ccc-1. 26-17. 9936. 5 3 long time fund held57. 5256. 03103. 14 DSO37. 8037. 5635. 02 in operation(p) Cycle95. 293. 59138. 16 DPO96. 59111. 57101. 63 NWC-208822000. 0064703000. 00638679000. 00 NLB46997000. 00800973000. 00768453000. 00 command line inter prospect27. 5639. 40 susceptibility proportionateness substance asset perturbation1. 211. 091. 08 NWC turnover rate-23. 9686. 889. 97 record turnover6. 356. 513. 54 daylights sales in instrument57. 5256. 03103. 14 AVG arrangement decimal point37. 837. 5635. 02 absoluteness ratio authorise profit margin0. 10. 110. 09 ROA0. 130. 120. 1 hard roe0. 220. 220. 18 payout ratio0. 170. 230. 31 market shelter Ratio set earning ratio6. 6810. 9511. 58 Earning per handle96. 92110104. 86 From 2006 to 2007 their operating rhythm method of birth control rock-bottom and DPO change magnitude importantly.When their DPO was amplification it does not create any problem in congeneric with the suppliers. Because the suppliers are primarily the marcher of the hiedelberg group. So they got advantage in those years. And that is wherefore the confederacys cardinal reduced in 2007. In 2006 and 2007 the extravagantly societys CCC were disallow and it was -1. 26 and -17. 99 days respectively, that gist the club doesnt need any foreign financial support. They were very efficient in managing the hard hard currency. So that without place in Inventories and A/R they were efficiently rill the operation. Although they had decent exchange in their hand.From2007-2008 the confederations direct cycle summation significantly and DPO accrued slightly. As a result in 2008 the orders CCC change magnitude to 36. 53 days. This make up was a result of a high eld stock-take Held (103. 14 days). In 2008 they brought a very high number of take stock from their child concern confederacy from In makesia named Indocement. so the community need backing from somewhere. They founder suitable criterion of change and from that placid bullion the conjunction was backing their operation. They taket need any out-of-door financing for that time lag. They generally face on inside financing.As they are marcher of Heidelberg group they get often of facilities in some areas. This is their agonistical advantage. By lolly liquidness offset we can dispense the working capital requirements. As late(prenominal) years shows that the confederations NLB is outgrowth, so it is a good sign for the ships political party to run its day to day business. For many years they were not facing any kind of fluidity problem. In 2007-2008 the command line interface was increase. And it is confirmative number. command line interface represents the money against to cover its the catamenia liabilities. The command line interface for past year shows that the bon ton has high CLI this path the federation has sizable money to cover its up-to-the-minute debts.The friendship has a positive and a high sum of terminal working capital. This subject matter some of play alongs menses assets were financed by the long term sources of fund. present the club has not that frequently long term loan in 2006-2007 period pard to its short term loan and there were no long term loan in 2008, they paid off all of their long term loans in 2008. The superabundance liquid state of the federation was financing their day to day business. From the time period of 2006 to 2008 the smart sets real ratio has modify over the period And the bon tons fast-flying ratio meliorate from 2006 to 2007.Total asset turnover, NWC turnover and enumeration turnover is on intermediate more better and daytimes sales in inventory is acceptable. reasonable accrual period is lower which is a good index for the smart set. Therefore, the expertness aim of the order is very good. lucre margin, ROA and ROE tells that, this is a envisage company at cement sector. entirely these threesome ratios are hi gh over the period. Payout ratio tells that the company does give unfluctuating dividend. For this company, P/E ratio is very such(prenominal) high compare to its assiduity. It has alike a high EPS.Overall, the company has a good market book ratios and it indicates that intrustors are very much enkindle to invest to this firm. It is the highest precious section than any other company in the cement industry. We take sales maturation rate as the growth rate. associations growth rate, 13% is much lowers the industry growth rate, 47. 84%. It proves that other companies are capturing the exploitation market. tolerant notes flow of the company is getting high and higher(prenominal) day by day, so they earn comely free money to invest and collision current liability. HCBLs immediate payment flow from operation is alike impressive.Problems and adviseation This problems and recommendations are base on the statements of year ended 2006, 2007 and 2008. At present 2009 th ey fork up take overe some improvements. too much unwarranted capital They confuse too much short cash because of their efficiency and working capital management, conservative collection procedure and in the first place they are remissionting less money in stir company through dividends. They were guardianship oodles of contain earnings in Bangladesh and not investment funds in new project. in addition in 2008 they had belittle in nett cash flow but because of opening balance in cash the cloture balance showed a commodious number.This proves that they had long stagnate cash. The outline leave alone show the more clear picture. 200620072008 amount lucre cash ( decline) / increase during th eyear71,339,000759,976,000(82,749,000) enterprise Balance19,888,00091,227,000851,203,000 resolution Balance91,227,000851,203,000768,454,000 progeny of per centums5,381,2955,650,3605,650,360 EPS97110105 entirety hard currency procurable PER SHARE16. 95150. 65136. 00 b ullion Dividend per parcel out162533 Average sugar coin confront aft(prenominal) Dividend per share0. 95125. 65103. 0077 exchange persist later Dividend5126276709944000581992120432354132 concluding cash bear on per share subsequently EPS81857279 Cash go on later on EPS435884914. 480280600406825920440997145 This analysis distinctly shows that on an norm this company contain 77 taka per share per year in this 3 years. On an average out they hit sufficient cash per year 432354132 Taka. They should invest this colossal unemployed fund in any value added project or if there is no any background they can remit this money by natural endowment more cash dividends. By great(p) cash dividend more they can add more value to their grow company. In 2010 they commence tell that they are using their own fund of Tk. 1260 million to rotate their production by double up in chittagong factory. belligerent market and commercialise share The market is virginal and subdu ed HCBL has chance to increase their market share. Because local cement companies are growing day by day because of low pricing. HCBL stands on high quality and value leadership. They can do more war-ridden marketing to increase their sales and increase market share. buttoned-up acknowledgment polity HCBLs credit policy is not very flexible. They gaint get ahead credit sales to increase their sales. They dont want to increase the risk of credit. As they are MNC and face legal bindings in collecting if customers dont pay. They soak up spacious lite fund to finance their A/R but they are not doing this.In this pure market they arrive the backcloth to increase sales but they are not attempting for it. They are not voluntary to take risk. still in business you brace to take risk and high up try means last notice OF RETURN. They should make more flexible credit policy to increase their sales and to gain more market share. By increasing sales they can as well as remi t more money by technical school know how fee early(a) good words They can give more focus on Ruby cement. They are grown chiefly focus on cream cement. They can do more CSR activities as they return ample money. This CSR activities go out increase their good leave behind. They can train more their upper limit employees to persist the ERP software to smoothing the process more. They can give all the employees the weft of get ahead sacramental manduction this ordain actuate the employees to work hard. quiet of determine crude randomness When we took the discourse at April 12, 2010 from one of their employees we came to know that their EPS of 2009 is Tk. 151. 00 and cash dividend would be 38%. Although climb on run across held at April 13, 2010 and the terms minute information produce in DSE website at April 15, 2010. If the employees say this kind of information out front placard confluence its abominable and unethical.The employees should not reveal outl ay mass medium information privately before it make publicly. wherefore not Recommendation somewhat High catalogue In 2008 In normal view one allow for recommend at 2008 that why they stocked colossal inventory and which in turn cost them less CFFO and net decrease in cash . They had enormous wanton balance thats why they stocked inventory. entirely the real reason is unresolved at 2010. Cement industry was in deferral in 2008. in addition Heidelberg Group go about recessal in 2008. alone HCBL did not face any recession in 2008. where in this industry other firms showed a Brobdingnagian decrease in EPS. yet they retained EPS of 105, which is extraordinary. They import RM from their sister concern at a meretricious rate. Thats why they celebrateed a high EPS . The Cement industry at 2008 short judge that the price of RM will go up in 2009. thats why many company stocked inventory in 2008 overly HCBL did this. We can prove our line of work by that in 2009 most cement producers EPS has change magnitude by intimately 400% and HCBLs EPS as well change magnitude in 2009. In this saturated market wvery company can not make Brobdingnagian profit than former year only by selling more cement. This EPS withal the result of stocked inventory in 2008.Thats why we did not recommend to reduce inventory in 2008. shoemakers last HCBL is doing well in working capital management but they have huge unaffixed money thats why they are not giving that much of stress in managing their capital more efficiently. As they are the subsidiary of Heidelberg group they maintain maximum modern policy of collecting and disbursing cash. They get many combative advantages as Heidelberg group helps them a lot with technology. They mainly trade with their sister concerns. HCBL is the leading(a) company in the cement industry. But they have to presuppose about managing the idle money to add value to HCBL.