RESEARCH AND ANALYSIS REPORT
“AN
EVALUATION
OF
THE
BUSINESS
AND
FINANCIAL PERFORMANCE OF D.G. KHAN CEMENT COMPANY LIMITED (DGKCC) BETWEEN 1 JULY 2004 AND 30 JUNE 2007”
(Word count: 6,498)
Presented by: KAMRAN KHALID ACCA reg. # 1431751 September 2008
CONTENTS
Page No.
1. Research Objectives and Overall Research Approach 1.1 – Topic Chosen and the Selected Organisation 1.2 – Project Objectives 1.3 – Research Questions 1.4 – Research Approach 2. Information gathering and business/accounting techniques 2.1 – Information Gathering 2.1.1 – Sources of Information and Methods used to Collect Information 2.1.2 – Limitations of Information Gathering 2.1.3 – Ethical Issues and their Resolution 2.2 – Business/Accounting Techniques 2.2.1 – Financial Ratio Analysis 2.2.2 – SWOT Analysis 2.2.3 – Porter’s Five Forces 3. Results, Analysis, Conclusions and Recommendations 3.1 – Business Description 3.2 – Cement 3.2.1 – The Cement Industry of Pakistan 3.3 – The Economy 3.4 – Ratio Analysis 3.4.1 – Sales Analysis 3.4.2 – Profitability Ratios 3.4.3 – Return-on-investment Ratios
4 4 5 5 6 7 7
7 8 9 9 9 11 11 12 12 13 13 14 15 15 16 19
3.4.4 – Activity Ratios 3.4.5 – Liquidity Ratios 3.4.6 – Financial Leverage Ratios 3.4.7 – Valuation Ratios 3.5 – SWOT Analysis 3.6 – Porter’s Five Forces 3.7 – Conclusion 3.8 – Recommendations List of References Appendices Appendix A – Financial Statement Extracts Appendix B – Questionnaire and Response
20 21 22 24 26 27 29 31 32
34 36
PROJECT OBJECTIVES AND OVERALL RESEARCH APPROACH
1.1 – TOPIC CHOSEN AND THE SELECTED
ORGANSIATION
After careful consideration of my strengths and weaknesses and discussions with my mentor I have selected the topic “The business and financial performance of an organisation over a three year period” for my Research & Analysis Project. The focus of my research report is “D.G. Khan Cement Company Limited (DGKCC)” which is currently the