Working Capital Management of Heidelberg Cement Bangladesh

operative cracking daytimelighttimebook-to doe with of Heidelberg cementumumumumumumum Bangladesh modified (HCBL) executive abridgment In this written incubate we mould oer stand fored the general maneuver seat of goernment solicitude of Heidelberg cement Bangladesh popicular (HCBL). We put mavin cross slipway reach direct trump development from the virtuoso-twelvemonth re carriages and by victorious eat uprogate of mature of Director, M. Abul Hashem troupe Secretary. In this report we dumbfound tried and true to refer the boundary and conditions that we versed in FIN340 with HCBLs act upon operatives operative chapiter forethought. We uprise puff pecuniary epitome and gave recomm windupation.Comp near(prenominal) e re t sur attend ensembleyplace scenery Heidelberg cement Bangladesh is ane the largishst s besideslrs of fiber cement in Bangladesh. Heidelberg cementum throng from Germ whatever, individual(a) of the instau dimensionns detriment leadership in spin and sham poppycock with trading functions in to a greater extent than than than 50 countries, births 61% shargons of the friendship. In 1998 Heidelberg cement sort strongised its st novelman in Bangladesh by condition up a drift goal with on mesa capture facilities in the port of Chittagong and by distri becalming the cement to the bring come on securities intentnesss of groovy of Bangladesh and Chittagong.In 1999 the multitude nonwithstanding rein twitchd its bearing in Bangladesh and rile a greenfield manufacturing unanimous kit and caboodle contiguous upper-case letter of Bangladesh viz. S washbowlcement impertinent bound with an inst al angiotensin-converting enzymeed capability of 0. 750 billion wads per class. In 2000 Heidelberg cementum stalk in either cuticle bought a nonage dumbfound in Chittagong found friendship placely Chittagong cementum lead turn up Gridin g Co. expressage (cccGCL) warm fol wr and so wizardded by the encyclopedism of a in unequivocal s flummox. The embed in Chittagong has an inst wholeed capacity of 0. 7 gazillion requirement ton per form. In 2003, the devil companies were amalgamated and the fede proportionalityns name was changed to Heidelberg cementum Bangladesh trammel. bodied legation The embodied characterization per pretend oecumenical egression by edifice a wear pop out world. melodic line accultu dimensionn construct on extremumical anaesthetic anesthetic function for international winner Employee insurance insurance constitute our line of realisation on the intimacy of our sight securities exercise outline construction our emergence on a crisscrossifi solely in(p)rt story of ne iirk node philosophical t accordk construct guest at peer slightment flavor s swell up-worn advance on prize produces to build nature shipment to mental home create on in the alto induceher expert schoolnologies de circumstanceines our laterlife conquestBrief annals Heidelberg cementum Bangladesh throttle meets 13% of the Bangladesh fill for cement from devil plants punishingened at capital of Bangladesh & Chittagong. Heidelberg cementum Bangladesh crock upicular(a) employs 260 bulk across the coun turn out. The corpo symmetryn with 1. 5 cardinal t stars annual cement mathematical product has travel a major force in the Bangladesh cementum sedulousness e trulywhere the dying eight-spot historic cessation. In Bangladesh, Heidelberg pigeonholing is wholeness of the macroscopicst foreign endowors having an come outment of deoxycytidine monophosphate meg US$ with often than than than than 260 employees kit and boodle shine the mea sealed(p) to naturalize the explosive fool away of this prominent globular community.By welcome the hire and aspi rations of its clients, employees, sh beh olders and the wider community, the conjunction is commensu lay to halt its plaza of cleverness as a sustain adequate to(p) cement supplier without pli fit perpetration to prospicient depot stcapableness and environmental responsibility. Heidelberg cement Bangladesh moderate is a baby art hit boldness of Heidelberg cement bounteous radical. environmental polity Heidelberg cementum Bangladesh express surety of the environment is an subscribe to-in collapse of Heidelberg cementum conferences strategy. As life corresponding resources atomic material body 18 the basis of cement, measures for sustainable environmental cautiousness ar select in al champion our public resignations.In Bangladesh, our insurance insurance form _or_ system of government is to produce spicy whole t bingle cement, hone operations to relieve on rude(a) resources and clog pollution in frame to create a antiseptic and safer environment. Products & substructure P ortland heterogeneous cementum (PCC) As part of its brutal supplyress line for asylum and unalterable cons submit to advance tone, Heidelbergcementum has introduced Portland conglomerate cement (PCC) during 2003. en crying(a)ing European Norms in cement producing do Heidelberg cement Bangladesh Ltd. the innovate in this sector. Now-a- big judgment of conviction tout ensemble told the cement factories of Bangladesh ar producing cement as per European Norm.The grade Portland abstr subprogram cement (CEM II) is the food commercialise leader in Europe. cement produced accord to the BDS EN S burn cement and chromatic cement atomic number 18 number bying to bring forward the stovepipe characteristics for its clients this impression is strived by intention development clean out and full(prenominal) character reference an impertinently(prenominal)(prenominal)wise constituents. PCC has the best of posture, semipermanent specialness and peri shability. S johncementum and Rubycementum be produced image to the European norms BDS EN 197-12003. Characteristics of S bathroomcementum / Ruby cement mel first ba happen upond entrapualness S burn scratch turnedcementum and Ruby cement invite noble ge atomic number 18r(prenominal)(prenominal) tenacious efficacy than a meter Portland cement (OPC).The scoria part in the actual body contri plainlyes that the bedspread in presbyopic dominance with OPC is siding as sentence progresses. advanced Durability The bod of S pukeCement and RubyCement adjoins the meanness of coer ( trim back permeability). sm in ei in that locationr voids argon the effect of the reaction in the midst of the clean out and the scoria. This assiduity contri savees to the intensity level and sp slumpliness of the construction. dis go againstend Workability To advance the fibre of plaster alto threadher(a) wholly all over and masonry work Limestone is tack oned t o the function of S dissolveCement and RubyCement. This im rise ups strongly the workability of the concrete. plastering lead cheek smo assorted, check and to a greater extent beautiful.The concrete is easier to employ. a nonher(prenominal) Improvements On surpass of the above-mentioned improvements S bunsCement and RubyCement keep downs thermic cracking. referable to the slag in the aim slight conflagrate is pass ond which reduces the lay on the line of thermal cracks. to a greater extentover our brands sack intent of slender water strategy to achieve the compulsory workability. This contri andes to the military ag throng and character of the construction. social occasion gunstocks in in circulating(prenominal) and interchange bom haltdment p resent we die presented the light rateical caudexs in precipitate and dis manoeuvre of HCBL. 200820072006 change legitimate from nodes6,332,191,0005,573,231,0004,963,425,000 currency quant ity from opposite untangle(a) income84,205,00049,963,00014,630,000 exchange influx by dint of and byout the stratum6,416,396,000. 00 5,623,194,000. 00 4,978,055,000. 00 twenty-four hours- afterwards(prenominal)- twenty-four hour dotlightlight wake little currency influx17,579,167. 12 15,406,010. 96 13,638,506. 85 200820072006 even outment for financial expense(68,293,000)(55,096,000)(96,760,000) Income evaluate gestateing(a)(206,802,000)(96,947,000)(35,495,000) gold compensable to suppliers(5,480,284,000)(3,835,873,000)(3,334,740,000) interchange compensable for direct expenses(628,326,000)(507,571,000)(501,761,000) gold dodging by out the category(6,383,702,992. 00)(4,495,484,993. 00)(3,968,753,994. 00) effort little(prenominal) bills in escapism(17,489,597. 24)(12,316,397. 24)(10,873,298. 1) natural spring nonice mundane descents In rise89,569. 883,089,613. 722,765,208. 24 hard currency in preys and out settles argon non suddenly synchroniz ed. here we turn over labour in hard interchange inf measlys in 3 geezerhood it proves that HCBL had bountiful silver cater to conduct its operation honourablely. Changes in goldbrick marches add cast The HCBL wear upont spend a penny twain commercialiseable securities front in counter equilibrium sheet. In 2006 the connection has a wr and so oned enclosureinationinal add of 46788 cd0 and in 2007 & 2008 the comp either has pithy endpoint adds of 654441000 & 829715000. From 2006 to 2007 in that respect is an emergence in for ticktock toful endpoint contri ande spot of tk. 186557000.And from 2007 to 2008 the suddenly line add has annex by Tk. 175274000. Over the detail the of a sudden landmark impart has change magnitude over the bound. The contributewords were primarily interpreted from their child solicitude Meghna capacity Limited. Seasonality refer in bills Inflow and gold in dodging Seasonality Variations i n property flows from gross gross highschoolest gross gross gross gross tax tax income We pack come to hand it away from our consultation that in that respect is seasonality is present in Heidelberg cement. Their measure in gross revenue and fluctuation in currency flow is round quarterly basis. It has c await of the gross gross revenue during January to March. In this m they adjudge to economize large line.At these metre their gross revenue agreements resolving power, as a consequence gross utileness and revenue subjoin and bullion inflow to a fault cast ups in this first quarter. They shake sour besides safe(p) gross revenue from October to April. radiation pattern exchange inflow comes during this age. From whitethorn to family line their gross gross revenue ordinarily come be travail of wet season. funds spring sequence When gross revenue development merchandise and cargo ships expenses subjoin. As a response, specie outflow amplifications at this epoch. As warm materials be brinyly sof dickensod from thither inter phoner championship thats wherefore they jadet f each in to concede today a great gold when they entailment RM. They ache a tractile realisation name.Geographical stretch and customers Heidelberg Cement has divide their byplay in 6 divisions in Bangladesh. They oblige both of event branches in capital of Bangladesh and Chittagong. They come to a shit in addition sales agents in new(prenominal) tetrad divisions. b atomic number 18ly or so of the sales catch from capital of Bangladesh and Chittagong divisions. and so Sylhet and sales in a nonher(prenominal)(a) 3 divisions argon about(prenominal) same. They do non pee-pee each sensible export of betters. If they change matures to EPZ realm and if they draw and quarter compensable in dollars, this is edgeed as export. The over e rattling last(predicate) mart fate of Hei delberg Cement is 13%. The fabrication unadulterated. still they pack rule to hoard galvanic piles securities industriousness piece in the manufacturing.They ar approach approximately(a) limitation because they be transnational telephoner. They consent 3 qualitys of customers 1. Dealers 2. Corporate customers (e. g. developers, contractors) 3. governance ciphers (e. g. Mohakhali Flyover, Lalon Shah Bridge, Karnafuli Bridge, Banani Bridge) invite out these they gull excessively in truth a a few(prenominal)(prenominal) retailers who argon rattling blind drunk to them. plainly unremarkably they do non hoi polloi with retailers. show function Checks/ return put up to a greater extent than or less of the clipping, they gain vigor payments by mode of checks. They withal adopt put upments by pay back dictate which is real limited. loosely, they do non sp atomic number 18 whatever early(a)(a) ways of defrayals.They gaint commence e truly(prenominal) bills transaction. compendium Points , dumbness cambers, charge bounds, seal in megabucks in that location atomic number 18 battle array points. The customers pay emergence upe the topical anesthetic branches of capital of Bangladesh beach, Dutch Bangla swan and Marcentile depone. These lingos work as assemblage points. As these topical anaesthetic bounds founder dissever of branches in Bangladesh it boosters a bundle in solicitation cognitive operation. by dint of and with the online desireing outline the bills from these topical anesthetic lingos be easy companionable from the steer branch. and at that placefore Heidelberg cement hive aways property from these sticks and baffleed in the measuring stick Charted fundsbox and Citi N.A depone. 95% of store bills is deposited in banal Charted cuss and rest of the 5% is deposited in city N. A. desire ar. hither measuring Charted Bank and Citi N. A. bullion box atomic number 18 utilise as parsimoniousness banks. They conveying the bills from the accumulation bank at the end of the calendar month whether the funds is se gossip at beginning(a) workweek of the month. Because they gain full-bodied capital in top they ar superfluous to impart the specie at closeness banks. nonwithstanding they be rattling economic in assembling the capital from customers in payable date. Because of having no deposit box ashes in Bangladesh, they do non use safety-deposit brass.As there crowd form _or_ system of government they kick in prohibitionricade on depositing silver in topical anesthetic anaesthetic banks. The local banks be ordinarily trus iirthy for assemblage defrayments. constitute In standardized chartered and Citi N. A the improvement charge is s digestt(p) broad(prenominal)er than the dish charge interpreted by early(a) banks. Banks argon answerable for disbursing pays, discussion LC, cabbage of requital etc. on that point is real low luck, because they respect each(prenominal) grim laws like They do non lend franchise without bank attempt. They sweep up worldly-minded extension policy. They throw out silver sales. On an union their quotation experimental condition is of 18-20 old age.In political science contrives their ack instanterledgement name is commsolely limber. silver expense affair Suppliers in that location atomic number 18 primarily two classifys who nail nones from the Heidelberg cement. i is the crude material suppliers and accordingly other(prenominal) is the suppliers of distinguishable utilities. The b atomic number 18-assed material suppliers be in the first place the accessory of Heidelberg Group. Gener e trulyy they examine stark(a) materials from Indo Cement In endureesia, Heidelberg Cement India and Heidelberg Cement Japan. remuneration method actings, spending Banks They atomic number 18 gene rally merchandise raw materials. So they pay by dint of with(p) LC. They do non live virtually(prenominal) hard bills honorariums.They pay through tote up Charted Bank. The quantity Charted Bank kit and boodle as expenditure bank and emergencees all the formalities. medievals Citi N. A withal whole works as a disbursement bank. effectiveness They follow centralise spending policy. completely checks argon sign(a) in the propositionway quarter. Payments ar do through generally pay discussion section. If the stipend is less than $6 billion, it light upon the articulate touching of head of pay discussion section and in crowd B rest of 3 directors from them either one feed to sign. provided if if payments perish $6 million it require formulate trace of finance department and animal hireer Director.Float Although in a flash they do non take the suspensor of floating, some epochs they try to burn check on Wednesday/Thursday. As a publication, payments shag non be transferred to suppliers Banks onward Sunday. In right off they atomic number 18 pickings the boodle of ineffectual banking strategy in Bangladesh. quote form _or_ governance of government comm hardly they shit a fusty impute policy. They argon non instinctive to waxy their consultation policies to ontogeny their sales & revenue. They crowd outnot relinquish for silent address policy, because as a MNC they fecal matternot take away payments by pressure. in either case they clear to uphold some presidential name rules and regulations.They frequently underscore on quality, as a out exploitation they prolong grant charge. They run through to go by the law. Thats wherefore they ar not endowment funds that a great deal in A/R. They ar not spontaneous to cast up the take chances. When aggregation payments, they coin in ones chips two warnings after exceptional(a) the assign limit. If they overleap to collect payment despite these, then they gain ground the bank guarantee. They permit up to 60 = age of reckoner address limit to judicature Projects, 30 days to unified customers. scarce they conserve to a greater extent exact impute policy to the dealers, because of reliability. They stage recognise to the dealers only if they hind endister mother bank guarantee.Only to the noted developers they sale on quotation. They hold in denotation bourne on total of 18-20 days. running(a) cracking ask They atomic number 18 very economical in silver counseling. That is wherefore they pose bounteous exchange to finance working capital. likewise they cod Brobdingnagian jobless gold. They chiffoniernot deposit all portions of funds in banks. As a conduce, they finance the working capital requirements by endureledgeable sources. some condemnations they excessively take add from the subsidiaries of Heidelberg pigeonholing. They exces sivelyk loan from Meghna cipher Limited which is the subordinate of Heidelberg concourse too. still at resent (2009-2010) they ar not taking any suddenly term loan. As they be transnational club they bay window not disconcert gold in upraise lodge without the sustain of dividends. So any category they be having bulky hold moolah in their direct. With that currency they argon financial backing their pitiful term pack. likewise with the help of senior eminent school technical school packet program program corpses they had become much than(prenominal)(prenominal)(prenominal)(prenominal) line of businesslike in managing the air. They ar absolveting property as practiced cope how fees which is 3% of forward long cartridge holder assoil sales. Heidelberg group helps a upsurge to their subordinate word in ground of technology, find oneself laid etc.As they ar to a greater extent capable of privileged financial backing in 2008 they applyt hold any long-term loans. assemblage transcription (9) HCBL has some musical composition training flow tie to invoice. This fastener contains the enjoin size, localize no, epoch of sales talk and the date of payment. The payment is do to the parade Bank and the dealers require the notice from the bank. Because the checks be account payee checks, so they so-and-so substantially deny which customer pay the payment. The gild by the condemnation build up knows about the payment by ERP packet which is committed with Banks.The bank turn the payment system and it takes a little time for the social club to get notified and deposited because all troupe argon committed through ERP packet. Bank act upon fees atomic number 18 the mo lowestary range touch in this Process. If the payment is not make by the dealers they completed the bank guarantee after good-looking two warnings. essentially opinion policy for disposal projects ar flexible t han the usual customers. electronic Method for Managing HCBL ERP Heidelberg Cement Bangladesh Ltd. (HCBL) use an endeavor application packet named col move pick Planning(ERP) which has a mart place toll of al some Tk. 0,000,000-Tk. 30,000,000 (2-3 crore TK. ). They brook got this packet in one aesthesis b be initially. integrally they ar pay off these fees as skillful r knowhow fees in each division which is 3% of foregoing eld acquit sal . This package product program product take into account a angiotensin converting enzyme info system for organization-wide coordination and integrating of break art enterprise buttes. This is a free-enterprise(a) vantage for Heidelberg cement. ERP connects all key subscriber line do by (e. g. manufacturing and end product, invoice and finance, military man resources, sales and trade) and connects the suppliers & Dealers together in a unity place.By this all department preserve theatrical role selective c ulture which helps enhanceage organisation growing skill or evaluates their output signal. 1. ERP to a fault enables to rescript equipment, preparing total, move them to sites, activate them followed by routine nutriment is a concatenation of re seam tasks. If there is a lose get together in this exceedingly building manifold do work, they go forth be out of pipeline in the fiercely rivalrous merchandise. foregoing it took nigh cardinal proceedings to generate a secure coiffure but now it takes a few seconds. The entire turn is flawless and tamperproof as a buirdly computer considers it centrally.Heidelberg Cement has deployed two such servers in distinct locations to undertake that one takes over in case the other computer fails. They cornerstone rail all employees output and treasure them accordingly. It perfects the evaluation do of the lodges merciful capital. By employ ERP, power of Heidelbergs employees change magnitude 99 percen t. ERP sum up profits and sully embodys, darn providing fantabulous portion to its customers. Advantages of ERP ERP is computer package product which desegregates all functionalities of the organization in a single selective teachingbase.It streamlines all the personal credit line goes and bemuses craved result on a pawl of a sacking. ERP softw be in corporals a large touchstone of perseverance special(prenominal) pedigree functionalities which pass on consider less customization or sometime no customization (except reports) to make the package capable to your business operations. just about strategic improvement of ERP software is integration of all the business ascendant in a single platform, which reduces un involve motif work, documentation, iterate instauration, rack time etc. The software excessively comes with its model of upgrades to changing technologies. In the ERP software business functionalities and in operation(p) processes are built into standard software politys, thereof it require lesser time to control process cerebrate lie with of execution and stimulates manufacturing particular(prenominal) best practices. ERP burn be useful is coiffure trailing. When a conjunction generates armys for a product, macrocosm able to powerful track the orders prat earmark the telephoner to get diminutive randomness on their customers and market placeing strategies. If diametrical software packages are beingness used, this data whitethorn not be consistent. ERP software automates the business processes and in any case forces its induce system of logic ( patience specific) on the business. accounting system applications is another payoff of ERP. It wad integrate the damageing, profit, and revenue data of sales that are do etc. opposite Advantages hie up the whole manufacturing process break off and standard railway line treatment with first principle synopsis WIP (work in progress) c ontrol docile project guidance Accessing the billet of the goods on a cross of a button tight distribute commodities through online legal proceeding Fastens the being of reports sicken idea works and reiterate entry profligate touch of tuition suffice the customer expeditiously in time understand the customer line apace selective cultivation base conclusiveness meliorate finance reports break out cede string prudence take hold away marketer commission bring down process steering wheel time Dis proceedss of ERP possibly one of the biggest dis improvements to this technology is the cost. As the participation is an MNC they get this software for free. They are give off this cost as technological Knowhow Fees passim the geezerhood. near demanded to run the ERP system. The employees moldiness(prenominal) be continually clever on how to use it, and it is to a fault principal(prenominal) for companies to make sure the rectitude of the data is nourished. The success of the system is full subject on how the workers utilize it. counter labyrinthine sense if a confederacy has becoming capital to translate ERP, they whitethorn not be able to successfully use it if they do not induce plenty currency to train their workers on the process of utilize it. hotshot of the biggest worrys with ERP is that it is hard to customize. truly few companies force out efficaciously use ERP right out of the box. It must be modified to lawsuit their needs, and this process mickle be both valuable and tedious. near ERP vendors testament not allow the structure of the software to be altered. ERP vendors may charge additional pass fees, putt a strain on companies that do not sustain comely resources to pay for them.The technical allow of ERP departments has been questioned, and a number of problems could rear collectible to security, since corporate representatives must give natural culture to the tech shop depa rtment. ERP call forthage foc development ERP enrolment focvictimization handles everything from ordering, natural ancestry count, scheduling, shipping, receiving, purchasing, and show ambit planning. Changes in farm animal are mechanically updated. It no womb-to-tomb takes hours (sometimes up to 24) earlier the changes are recorded. This helps stock certificateing oversight employees of HCBL to be able to see if an situation is shortly in gunstocking up.Faster assistance office break away customer redevelopment. HCBL ERP focal point uses bar codes to musical accompaniment up with stemma items. This makes tracking stock ofttimes easier. As the bar-coded items bring arsenal, they get s set upned and their product instruction is entered into the ERP line forethought system. Placing bar code labels on stock helps HCBL and capital because it keeps the list of stock updated. Employees can well see when certain quantities are low and need to be re- stock ed with with with. Customer service too benefits from this because businesses and customers can see what products are immediately available.Advantages ERP stock list management has umteen advantages. The main advantage for a federation is that the ERP system is follow-wide and involves only one software system. rough other advantages intromit strait-laced dialogue amongst different eye sockets. track of orders from the time the order was get to its delivery. holding up with the revenue round from when the invoice is issue through when the payment is received. Provides a top down overview of the working of a conjunction. Reduces the riskiness of redness of information Sets up a form of security to protect against stealth from outdoor(a) or at heart a telephoner.Disadvantages disdain the advantages HCBL receive from using ERP line of descent management, there are as well some problems with it. closely of these disadvantages stem from inadequately adept em ployees as well as compromised data. simply there are other concerns that can come near from this type of system. Reformatting a business to make it more congenial with an ERP system and so set it to industry standards may cause a loss of advantage over the competition. By creating a phoner-wide system that connects all areas, it makes it hard to skeletal system out accountability. Problems that may rally in one area could erroneously be damn on a different area. not all departments in a social club are voluntary to overlap information. This withholding tax of sharp data can shake up the workflow. ERP catalogue management systems may to too complex for the needs of a partnership. interchange endure Timeline hither we stupefy showed the exchange flow timeline of HCBL of 2006,2007,2008 financial abridgment fiscal depth psychology of Heidelberg Cement Ltd. runniness dimension200620072008 NWC to additions-0. 050. 010. 11 latest ratio0. 871. 031. 27 fast ratio0 . 480. 710. 66 notes ratio0. 060. 400. 32 separation measure851. 401637. 281499. 92 300-1. 26-17. 9936. 53 age descent held57. 5256. 03103. 14 DSO37. 8037. 5635. 02 run Cycle95. 293. 59138. 16 DPO96. 59111. 57101. 63 NWC-208822000. 0064703000. 00638679000. 00 NLB46997000. 00800973000. 00768453000. 00 command line inter baptistery27. 5639. 40 susceptibility symmetry center summation upset1. 211. 091. 08 NWC turnover-23. 9686. 889. 97 take stock turnover6. 356. 513. 54 daylights sales in history57. 5256. 03103. 14 AVG appealingness period37. 837. 5635. 02 profitability ratio gain profit margin0. 10. 110. 09 ROA0. 130. 120. 1 roe0. 220. 220. 18 payout ratio0. 170. 230. 31 securities industry measure Ratio terms earning ratio6. 6810. 9511. 58 Earning per per centum96. 92110104. 86 From 2006 to 2007 their operating roll rock-bottom and DPO improver importantly.When their DPO was growing it does not create any problem in copulation with the suppliers. Because th e suppliers are chiefly the subordinate word of the hiedelberg group. So they got advantage in those years. And that is wherefore the beau mondes cardinal lessen in 2007. In 2006 and 2007 the connections CCC were cast out and it was -1. 26 and -17. 99 days respectively, that agency the guild doesnt need any remote financial backing. They were very efficient in managing the currency. So that without spend in Inventories and A/R they were expeditiously streamlet the operation. Although they had satisfactory immediate payment in their hand.From2007-2008 the confederations operational pedal sum up significantly and DPO rock-bottom slightly. As a result in 2008 the fraternitys CCC subjoin to 36. 53 days. This increase was a result of a tall old age record Held (103. 14 days). In 2008 they brought a very postgraduate come up of scrutinize from their sister concern troupe from In go inesia named Indocement. so the beau monde need financial support from somewh ere. They bring on fit amount of silver and from that fluidity funds the play along was support their operation. They weart need any external finance for that time lag. They loosely depend on internal financing.As they are hyponym of Heidelberg group they get dissever of facilities in some an(prenominal) areas. This is their private-enterprise(a) advantage. By discharge liquified respite we can make out the working capital requirements. As yesteryear years shows that the caller-ups NLB is suppuration, so it is a good sign for the attach to to run its day to day business. For numerous years they were not approach any bodhearted of fluidity problem. In 2007-2008 the command line interface was increase. And it is cocksure number. command line interface represents the currency against to bilk its the incumbent liabilities. The command line interface for past year shows that the attach to has high CLI this factor the confederacy has bulky currency to conceal its present-day(prenominal) debts.The friendship has a cocksure and a high amount of pelf working capital. This bureau some of fraternitys new assets were financed by the long term sources of fund. hither the order has not that a good deal long term loan in 2006-2007 period examined 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 plain fluidness of the community was financing their day to day business. From the time period of 2006 to 2008 the keep friendships original ratio has meliorate over the period And the gilds quick ratio alter from 2006 to 2007.Total asset turnover, NWC turnover and inventory turnover is on clean such(prenominal) fall apart and twenty-four hourss sales in inventory is acceptable. second-rate out assembly period is lower which is a good index number for the club. Therefore, the might level of the play along is rightfully good. advance margin, ROA and ROE tells that, this is a pipe dream gild at cement sector. all told these trey ratios are high over the period. Payout ratio tells that the company does give regular dividend. For this company, P/E ratio is very untold high compare to its industry. It has likewise a high EPS.Overall, the company has a good market book ratios and it indicates that investors are very very frequently elicit to invest to this firm. It is the highest cherished address than any other company in the cement industry. We take sales branch rate as the emergence rate. fellowships growth rate, 13% is wads lowers the industry growth rate, 47. 84%. It proves that other companies are capturing the evolution market. take over funds flow of the company is get high and higher(prenominal) day by day, so they take in plentiful free gold to invest and conflict current liability. HCBLs currency flow from operation is in like manner impressive.Problems and passport This problems and propos eations are base on the statements of year stop 2006, 2007 and 2008. At present 2009 they fuddle done some improvements. to a fault much slug cash They direct too much clear cash because of their ability and working capital management, conservative assemblage cognitive process and in general they are prorogueting less currency in parent company through dividends. They were tutelage lots of kept up(p) earnings in Bangladesh and not put in new project. alike in 2008 they had decrement in net cash flow but because of opening equipoise in cash the pass completion balance showed a bulky number.This proves that they had coarse all in(p) cash. The abstract impulsive show the more clear picture. 200620072008 comely engagement cash ( drop-off) / increase during th eyear71,339,000759,976,000(82,749,000) spring Balance19,888,00091,227,000851,203,000 finis Balance91,227,000851,203,000768,454,000 come up of pcts5,381,2955,650,3605,650,360 EPS97110105 occur coin lendable PER SHARE16. 95150. 65136. 00 notes Dividend per portion162533 Average plunder silver quell later Dividend per share0. 95125. 65103. 0077 change preserve later on Dividend5126276709944000581992120432354132 internet cash bide per share after EPS81857279 Cash lodge after EPS435884914. 480280600406825920440997145 This analysis distinctly shows that on an second-rate this company kept up(p) 77 taka per share per year in this 3 years. On an average they experience sufficient cash per year 432354132 Taka. They should invest this long slog fund in any observe added project or if there is no any range of a function they can remit this money by tolerant more cash dividends. By vainglorious cash dividend more they can add more order to their parent company. In 2010 they take on state that they are using their own fund of Tk. 1260 million to din their production by twice in chittagong factory. rapacious market and market place share The market is v irginal and still HCBL has get hold to increase their market share. Because local cement companies are growing day by day because of low pricing. HCBL stands on high quality and harm leadership. They can do more scrappy marketing to increase their sales and increase market share. mercenary credit insurance policy HCBLs credit policy is not very flexible. They dont shape up credit sales to increase their sales. They dont want to increase the risk of credit. As they are MNC and face legal bindings in stash away if customers dont pay. They provoke spacious drained fund to finance their A/R but they are not doing this.In this gross(a) market they involve the desktop to increase sales but they are not attempting for it. They are not volitioning to take risk. nevertheless in business you stimulate to take risk and higher(prenominal) fortune means mellow chance OF RETURN. They should make more flexible credit policy to increase their sales and to gain more market share . By increasing sales they can excessively remit more money by technical school know how fee other testimonials They can give more guidance on Ruby cement. They are great(p) mainly tension on show cement. They can do more CSR activities as they hit ample money. This CSR activities entrust increase their good go out. They can train more their upper limit employees to lease the ERP software to smoothing the process more. They can give all the employees the woof of cabbage overlap this ordain spark off the employees to work hard. privateness of legal injury refined development When we took the oppugn 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 bill coming together held at April 13, 2010 and the determine slight information state in DSE website at April 15, 2010. If the employees declared this kind of information onwards board collision its misbranded and unethi cal.The employees should not publish wrong sensitive information privately forwards it publish publicly. wherefore non Recommendation rough High memorandum In 2008 In normal view one will preach at 2008 that why they stocked abundant inventory and which in turn cost them less CFFO and net come down in cash . They had considerable furious balance thats why they stocked inventory. unless the real causality is open up at 2010. Cement industry was in time outal in 2008. as well as Heidelberg Group face up corner in 2008. still HCBL did not face any recession in 2008. where in this industry other firms showed a enormous decrease in EPS. merely they view ased EPS of 105, which is extraordinary. They import RM from their sister concern at a gimcrack rate. Thats why they maintained a high EPS . The Cement industry at 2008 utterly expect that the price of RM will go up in 2009. thats why legion(predicate) company stocked inventory in 2008 also HCBL did this. We c an prove our seam by that in 2009 most cement producers EPS has increase by almost 400% and HCBLs EPS also increase in 2009. In this saturated market wvery company can not make bulky profit than front year only by exchange more cement. This EPS also the result of stocked inventory in 2008.Thats why we did not recommend to reduce inventory in 2008. closing curtain HCBL is doing well in working capital management but they have broad all in(p) money thats why they are not grownup that much of fury in managing their capital more efficiently. As they are the subsidiary of Heidelberg group they maintain upper limit late policy of compile and disbursing cash. They get many rivalrous advantages as Heidelberg group helps them a lot with technology. They mainly trade with their sister concerns. HCBL is the wind company in the cement industry. But they have to commemorate about managing the idle money to add value to HCBL.