financing decisions and analysis of monno ceramic

TERM PAPER PRESENTATION

on “Financing Decisions and Analysis of

Monno Ceramic Industries Limited (MONNOCERA)

Presented by: Md. kowshick AhmedID: 16251009Section: ABBA in MKT

Executive Summary

What is Financing Decision?

What is Financing Decision?

Financing decisions is concerned with the borrowing andallocation of funds required for the investment decisions.

2 sources:

❶ Using a company’s own money, such as share capital,retained earnings or

❷ Borrowing funds from the outside in the form debenture,loan, bond, etc.

History of Monno Ceramic Industries Limited

Industry Ceramics Manufacturing

Founded 1985 By Mr. H.R. Khan Monno

Headquarters Dhaka, Bangladesh

Area served Asia, Europe and Africa

Products Porcelain, New Bone China, Ivory China

and Bone China tableware

Vision and Mission of Monno Ceramic Industries Limited

Vision :

They consider business to be a way to the prosperity of the shareholdersand every other partner, society and in addition the national enthusiasm allin all.

Mission:

The mission of the company is to provide world class quality product to ourvalid customers, strictly maintain ethical standard, in business operation.

Nature of Financing used by Monno Ceramics Industries Ltd.

Equity financing is the process of raising capital through the sale of shares in an enterprise.

▪ Share capital

▪ Revenue Reserve

Debt financing means borrowing money and not giving up ownership. Debt financing often comes with strict conditions or covenants in addition to having to pay interest and principal at specified dates.

(That mainly indicates the liabilities session)

Findings part

DEBT-EQUITY RATIO:

Debt to equity ratio is a long term solvency ratio that indicates the soundness of long-term financialpolicies of a company. It shows the relation between the portion of assets financed by creditors and theportion of assets financed by stockholders.

▪ Debt equity ratio =𝐓𝐨𝐭𝐚𝐥 𝐝𝐞𝐛𝐭 / 𝐒𝐡𝐚𝐫𝐞𝐡𝐨𝐥𝐝𝐞𝐫𝐬′𝐞𝐪𝐮𝐢𝐭𝐲

Year 2010 2011 2012 2013 2014

Debt to Equity Ratio 0.30 0.30 0.75 0.75 0.74

DEBT-EQUITY RATIO:

▪

2010 2011 2012 2013 2014

Debt To Equity Ratio 0.3 0.3 0.75 0.75 0.74

0.3 0.3

0.75 0.75 0.74

Debt to Equity Ratio

Debt To Equity Ratio

Financing Analysis

Share holders Equity

Findings and Analysis

Non current liabilities and its changes in %

2010 2011 2012 2013 2014

Total Current liabilites/shor term

financing554,535,953 643,167,477 694,545,970 70269061 77,284,355

Total Current liabilities /short term financing

Total current liabilities- short term Financing

Monno ceramic industries Stock Price

208.56

192

96 96 95

0

50

100

150

200

250

2010 2011 2012 2013 2014

Stock Price

▪

Thank

YOU