Rap Acca Obu
OXFORD BROOKES UNIVERSITY
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
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