S Sh hi in ne ep pu uk ku ur r C Ce er ra am mi ic cs s L Li im mi it te ed d ( (S SC CL L) )

Disclaimer:

The contents of this presentation are entirely based on disclosures made by the
company. Therefore, DSE does not assume any responsibility on the
authenticity of the facts and figures presented thereof.

(If there is any contrary information please communicate with DSE
through e-mail: listing@dsebd.org)
Brief Overview of the Company

1. Date of Incorporation : January 26, 1997 as a private Company ,
Converted into Public Ltd. Co. on 07.05.08
2. Commencement of Business : Porcelain on 01.04.1999 and Bone China on
01.11.1999
2. Authorised Capital : Tk.5000.00 mn
3. Paid up Capital : Tk. 700.24 mn
4. Nature of Business : Manufacturing and Marketing of high quality
porcelain and high value added Bone China
Tableware.
5. Offloading of 3,50,11,800 Ordinary shares of Tk. 10 each (Total Tk.350.12
mn Face Value).

History of Paid up Capital
(Capital in Million)
Year Issued, Subscribed and
Paid-up Capital (million
Tk.)
Sources of Capital
2003 660.60 Sponsor
2004

660.60 Do
2005

660.60 Do
2006 660.60 Do

2007 660.60 Do

30.06.08 700.24 Bonus


Issue Manager: AB Bank (Merchant Banking Wing)

Auditor: M. J. Abedin & CO.


Shinepukur Ceramics Limited (SCL)
At a glance
Shinepukur Ceramics Limited (SCL) was incorporated in Bangladesh on 26
th

January 1997 under the Companies Act 1994 as a private Company. SCL
launched its production of Porcelain on 1
st
April, 1999 and Bone China on 1
st

November, 1999. It was converted into a public Company on 7 May 2008. It is
engaged in manufacturing and marketing of high quality Porcelain and high
value added Bone China Tableware, which it sells in the local as well as
international markets. Its exports stands at 80-85%; whereas local sales
amount to 15-20%. Porcelain products represent around 60% of SCLs sales,
whereas Bone China products account for 40%. SCL is a subsidiary company of
Bangladesh Export Import Company (BEXIMCO) Ltd. that holds 100% shares of
SCL. SCL was fully acquired by Beximco Ltd. in 2005.

Board of Directors:
Name of Director Designation Association with Other Concerns
Mr. Nazmul Hassan Chairman CEO, Beximco Pharmaceuticals Ltd.
General Secretary, Bangladesh Aushad
Shilpa Samity.
Mr. Ahmed Shahryar
Rahman
Director None
Mr. Ahmed Shayan F.
Rahman
Do None
* Mr. Ahmed Shahryar Rahman and Mr. Ahmed Shayan F. Rahman are son of
Mr. A S F Rahman and Mr. Salman F Rahman respectively.

Ownership Of the Companys Securities:
Name of Owners of
Securities
Position in the Co. No. of Shares
Mr. Nazmul Hassan Chairman 2


Mr. Ahmed Shahryar
Rahman
Director 1
Mr. Ahmed Shayan F.
Rahman
Do 1
Bangladesh Export
Import Company
Limited (BEXIMCO)
Shareholder 70,023,593
Mr. A S F Rahman Do 1
Mr. Salman F Rahman Do 1
Mr. O K Chowdhury Do 1
Total 70,023,600
However, the company did not report affiliation with other companies for three
shareholders namely Mr. A S F Rahman, Mr. Salman F Rahman and Mr. O K
Chowdhury.

Performance at a Glance:
(Tk. In million)
Particulars 2003 2004 2005 2006 2007

30.06.08
for 6 months
Revenue from net sales 917.82 1033.59 1337.18 1386.63 1386.13 730.60
Growth 12.61% 29.37% 3.70% -0.04%
Cost of Goods Sold 618.37 696.05 899.44 930.98 930.47 497.61
Growth 12.56% 29.22% 3.51% -0.05%
Gross Profit 299.45 337.54 437.74 455.65 455.66 232.99
Growth 12.72% 29.69% 4.09% 0.00%
Operating Expenses 73.88 84.96 83.59 87.58 80.05 38.16
Growth 15.00% -1.61% 4.77% -8.60%
Operating Profit 225.57 252.58 354.15 368.07 375.61 194.83
Growth 11.97% 40.21% 3.93% 2.05%
Net Profit Before Tax 10.38 67.69 176.13 159.40 172.86 96.49
Growth 552.12% 160.20% -9.50% 8.44%
Net Profit after Tax 10.38 59.53 136.11 118.38 130.23 72.23
Growth 473.51% 128.64% -13.03% 10.01%
Total Assets 2496.10 2869.33 3066.89 3096.50 3058.69 3080.36
Growth 14.95% 6.89% 0.97% -1.22% 0.71%
Total Liabilities 2063.33 2184.57 2131.19 2091.96 2024.06 1973.50
Growth 5.88% -2.44% -1.84% -3.25% -2.50%
Net Assets 432.77 684.76 935.70 1004.54 1034.63 1106.86
Growth 58.23% 36.65% 7.36% 3.00% 6.98%
NAV per share 6.55 10.37 14.16 15.21 15.66 15.81
Growth 58.23% 36.65% 7.36% 3.00% 0.93%
NAV per share (excluding
revaluation reserve) 6.55 7.45 11.25 12.29 12.75 13.06
Growth 13.75% 50.97% 9.26% 3.71% 2.43%
EPS 0.16 0.90 2.06 1.79 1.97 1.03
Growth 473.51% 128.64% -13.03% 10.01%

Shareholders Equity 432.76 684.75 935.70 1004.53 1034.63 1106.86
No. of Shares 66,060,000 66,060,000 66,060,000 66,060,000 66,060,000 70,023,600
ROE 2.40% 8.69% 14.55% 11.78% 12.59% 6.53%
ROA 0.42% 2.07% 4.44% 3.82% 4.26% 2.34%
Net Profit Margin 1.13% 5.76% 10.18% 8.54% 9.40% 9.89%
Asset Utilization 36.77% 36.02% 43.60% 44.78% 45.32% 23.72%
Equity Multiplier 5.77 4.19 3.28 3.08 2.96 2.78
Short-term Debt 933.77 916.05 969.38 1082.50 1142.01 1173.19
Long-term Debt 1129.56 1268.52 1161.81 1009.46 882.05 800.31
Total Debt 2063.33 2184.57 2131.19 2091.96 2024.06 1973.50
Total Debt to Total Asset 82.66% 76.14% 69.49% 67.56% 66.17% 64.07%
STD to Total Capital 37.41% 31.93% 31.61% 34.96% 37.34% 38.09%
LTD to Total Capital 45.25% 44.21% 37.88% 32.60% 28.84% 25.98%
Interest Expense 215.27 185.38 178.23 209.69 203.16 98.69
EBIT 225.65 253.07 354.36 369.09 376.02 195.18
Time Interest Earned Ratio 1.05 1.37 1.99 1.76 1.85 1.98
Dividend Information

2003 2004 2005 2006 2007 30-06-08
for 6 months
Cash
Dividend
- - - 7.5%
(interim)
15%
(interim)
-
Stock
Dividend
- - - - - 6%

RISK FACTORS AND MANAGEMENT PERCEPTIONS:

Risk is always associated with any kind of investment. So before taking decision
on investing in the shares of Shinepukur Ceramics Limited the investors should
carefully analyze the following risks in addition to the information contained in
the information Document:

(A) Interest Rate Risk: Interest rate risk is concerned with borrowed funds of
short term and long term maturity. Volatility in money market and
increased demand for loans/investments funds raise the rate of interest.
High rate of interest enhances the cost of fund of a Company and squeezes
the profit. SCL is not affected by this type of risk as the Company has not
borrowed fund at flexible rate.
Management Perception : Since the SCL has not borrowed fund at flexible
rate, hence, the interest rate risk does not arise.

(B) Exchange Rate Risk: Exchange rare risk relates to the core business of
SCL, since it mostly exports abroad in foreign currency and imports
materials from abroad in foreign currency also. Sometimes, the Company
imports machineries from abroad where foreign currency is involved and
exchange rate can impact the matter. The Company is also exposed to
foreign currency loans.

Management Perception: As SCL earns I foreign currencies, it can also
meet its foreign currency liabilities and costs out of its foreign currency
earnings.

(C) Industry Risk: Like other companies, SCL also suffers from industry risks
arising out of changes in customer choices, fashion and design.

Management Perception: SCL continuously carries out research and
development (R & D) to keep pace with the customer choices, fashion and
design.

(D) Market & Technology Related Risk: Technology for a ceramics
manufacturing Company is being upgraded in the developed countries as
well as other developing countries in the world. Emergence of new
technology may cause obsolescence of existing technology/equipment. So
embracing with new technology is essential for ensuring better services and
cost efficiency.

Management Perception: The Management of SCL is aware of technological
changes and has adopted new technology gradually according to a well
designed strategy. The gradual adoption of new technology helps to mitigate
the risk of obsolescence or other uncertainties. Further routine and proper
maintenance of the plants and equipment carried out by the SCL ensures
longer service life for the existing equipment and facilities.

(E) Potential or Existing Government regulations: Like other Companies,
SCL operations are also affected by potential or existing Government
regulations relating to import, export, foreign exchange, monetary and fiscal
regimes.

Management Perception: Since SCL is an export oriented Company the
Government regulations are mostly investment friendly including lower
taxes and duties, duty drawback and easier access to credits.

(F) Potential Changes in global or national policies: The performance of the
Company may be affected due to unavoidable circumstances both in
Bangladesh and worldwide, such as war, terrorism, political unrest in the
country or customer/ supplier countries. Changes in global or national
policies may also adversely affect the economy in general.

Management Perception: The risk due to changes in global or national
policies is beyond control of any Company. Yet SCL has spreaded its import
and export operations in various countries of the world to reduce the risk.
Further, it adopted policies to meet the challenges from potential changes in
global or national policies.

(G) Non-operating History: There is no history of non-operation in the case of
SCL.

Management Perception: To overcome these uncertainties, the Company
has its own power backup, scientific inventory management and continuous
market promotion systems, which may reduce the non-operating risk.

(H) Operational Risk: Non-availability of imported materials may affect the
smooth operational activities of SCL. On the other hand, the plants and
equipment may face operational and mechanical faults due to various
disasters, lack of supervision, unforeseen events and negligence leading to
severe accidents and losses.

Management Perception: The Company is equipped with power generation
and demand management system, which reduces operational risk. Besides,
the plants and equipment are under insurance coverage in order to get
reasonable compensation for any damages. Apart from those, routine check
and proper maintenance of the plants and equipment also reduce and
eliminate the operational risk.