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About BSRM Steels

1. BSRM Steels Ltd

2. Submitted To - Sabrina Akhter Assistant Professor Daffodil International University Submitted By - Toab Ahammad Rafin ID : 211-11-6660 Department of Business Administration Working Capital Management (FIN 408)

3. About BSRM BSRM (Bangladesh Steel Re-Rolling Mills Ltd.), established in 1952 by five visionary businessmen in Nasirabad, Chittagong, is the leading steel manufacturing company in Bangladesh. Initially starting with four manual rolling mills, BSRM upgraded to advanced Italian-built mills in 1970. Known for building major national landmarks like the Padma Bridge and Rooppur Nuclear Power Plant, BSRM introduced BSRM Xtreme, the first graded steel in Bangladesh, which set new industry standards. With the largest steel-producing factory in the country and cutting-edge European technology, BSRM ensures uncompromising quality. The company continues to innovate and diversify, exemplified by the establishment of BSRM Wires, producing specialized products for the construction industry.

4. Vision & Values Leadership in the Steel Industry Employer of Choice Shareholder Interests Stakeholder Trust Corporate Social Responsibility

5. WORKING CAPITAL ASSIGNED BY BSRM

6. Net Working Capital

7. Current Ratio & Cash Ratio Year 2023 2022 2021 2020 2019 Current Ratio 0.99 0.96 0.88 0.82 0.87 Cash Ratio 0.20 0.08 0.05 0.02 0.02

8. Turnover Ratios Year 2023 2022 2021 2020 2019 Accounts Receivables Turn over ratio 32.68 71.14 26.56 25.80 36.87 Inventory Turn Over Ratio 5.38 2.46 6.33 3.44 5.24 Payables Turn Over Ratio 219.99 178.14 197.64 287.53 36.14

9. The high payables turnover ratio suggests that BSRM is effectively managing its payables, possibly by negotiating favorable payment terms with suppliers or maintaining strong supplier relationships BSRM's inventory turnover ratio has fluctuated over the years but has generally shown reasonable efficiency in managing its inventory .

10. Overall Ratio Analysis Liquidity Challenges Improvement in Liquidity Position Efficiency in Accounts Receivable and Inventory Management Fluctuations in Payables Turnover Ratio

11. Based on the financial data provided for BSRM Steel Mills Ltd, it emerges as a leading company in its industry, displaying efficiency in managing its accounts receivable and inventory turnover. However, the consistent negative net working capital and current ratio below 1 indicate significant liquidity challenges. Despite these challenges, BSRM shows improvement in its cash reserves relative to short-term liabilities, suggesting efforts to strengthen liquidity. Fluctuations in the payables turnover ratio suggest dynamic supplier relationships. To sustain its leading position, BSRM needs to address liquidity concerns while maintaining efficient receivables and inventory management, and continuing to improve its cash position.

12. Thank You