FINANCIAL MANAGEMENT

Abstract

Fauji Cement Company Limited is part of the Fauji Foundation, it was established in 1992. It has two plants in Jang Bahtar, District Attock of which one is fully functional. Fauji Cement produces the best Portland cement in the country. In this report we looked into the economy of Pakistan. We researched indicators such as the GDP growth rate and the GDP deflator (inflation). Political turmoil, war on terror, increasing population and increasing poverty rate have all added to the decrease in GDP. The exchange rate of the Rupee versus the Dollar has increased. The government are using different financial instrument to control it. It is expected that the government will provide financing for different commercial and residential projects; this is expected to lead to a raise in the demand for cement. In industry analysis we analyzed the growth in the cement industry that took place over the years from 2005 to 2011. We analyzed the trends in the exports and the domestic dispatches of cement and explored the reasons for the fluctuations in these exports and local sales. Furthermore we compared the market shares of FCCL and the other competitors.in the end we compared the FCCL’s growth in exports and local dispatches and analyzed its contribution towards the company’s cement industry. The company analysis gives us the liquidity, debt, asset management, profitability and market value ratios. Also the cash flows from operating activities and competitor and industry analysis.