We prepared the term project which is based on financial statements of the RAK and their major competitor Shinepukur chosen from the same industry. After collecting all the annual reports, we have also access to their websites as well as various newspapers available in the library and the internet. We made several discussions to make our decision. Here, we will try our best to analyze the financial data acquired from the reports of year ended 2009, 2010 and 2011. Moreover, we have used the graphical presentation of trend analysis. In addition we compared their liquidity, productivity, leverage, profitability and market value ratio. It will inform us clearly about which company is in a better situation. Then we will conclude with a financial summary of the ratios using DuPont system of analysis which will help us to see whether the company is fully utilizing its total asset turnover, equity multiplier and profit margin all together.
RAK (Ras Al-Khaimah)
We selected RAK as the “selected company” (mentioned in the project outline) to analyze the financial statements. RAK Ceramics is the world’s largest manufacturer of ceramic and porcelain tiles with global production output of 117 million sq.m. per annum and accounts for around USD 1 billion global sales annually. The Ras Al Khaimah (RAK)-based public-listed company was established in 1991 by H.H. Sheikh Saud Bin Saqr Al Qasimi. The company's creations include the high-valued brand "Elegance Ceramics" and it continues to be a global pioneer in the world of ceramics through innovative eco-friendly products. RAK Ceramics uses more than 8,000 production models almost every week to its portfolio. All these contribute to RAK Ceramics brand by offering complete value-added service to clients. RAK Ceramics is a ISO 9001: 2008 & ISO 14001: 2004 certified organization.
Shinepukur Ceramics Limited (SCL)
We have selected the Shinepukur ceramics limited company as the major competitor of RAK Company. Shinepukur is a member of BEXIMCO Group which is the Largest Private Sector Business Conglomerate Bangladesh. Shinepukur Ceramics has been registered in Bangladesh in 1997 and the Plants were commissioned in 1998. SCL is located in the BEXIMCO Industrial Park, near Dhaka Export Processing Zone (DEPZ). Shinepukur produces World Class Bone China, using the top quality raw-materials and ingredients of ceramics, sourced by highly reputed Manufactures from all corners of the Globe. The Company was certified ISO 9001:2000 in August 2001, which was later upgraded to its 2008 version and has been certified as ISO 9001:2008.
The reason of choosing the company:
We have chosen “RAK” as our Mother Company and “Shinepukur” as the competitor company because they belong to the same industry. In Bangladesh, they are the two most leading companies in the ceramic industry. Since we are analyzing financial ratios for this project, these two companies follow the same ratio pattern as well as the same fiscal year.
The reason of RAK and Shinepukur being Competitor:
RAK is one of the oldest leading companies in the ceramic industry of the world.And we have chosen Shinepukur as the competitor company because its market share is relatively close to RAK’s market share. Both of them are serving the country to their optimum level. Because of these reasons they are competitor to each other. Financial Performance Analysis:
The balance sheet and the Statement of Income are essential for any company’s annual progress, but they are only the starting point for successful management. Financial Ratio analysis actually analyzes the success, failure, and progress of the business. Ratio Analysis enables the business owner to spot trends in a business and to compare its performance and condition with the average performance of similar businesses in the same industry. Financial ratios can be classified according to the information they provide. The following types of ratios frequently are...