Power Grid Company of Bangladesh

Chapter – 1

1.1 Introduction of the Company:
We have selected Power Grid Company of Bangladesh Limited as the company to analyze the financial condition. Here is a short overview of the company
PGCB was created under the restructuring process of Power Sector in Bangladesh with the objective of bringing about commercial environment including increase in efficiency, establishment of accountability and dynamism in accomplishing its function. PGCB was incorporated in November 1996 with an authorized capital of BDT 10 Billion. PGCB entrusted with transmission assets from Bangladesh Power Development Board and the Dhaka Electric Supply Authority (in present DPDC).
It has paid up capital 3643.58 million BDT
Turnover in 2008-2009: 5713.83 million BDT
Transmission Line as 30.06.2009: 230 Kv – 2644.5 circuit km
132 Kv – 5607.6 circuit km
Manpower as on 30.06.2009: 1932 Nos.
1.2 Identification of the Problem
Book Value per Share is the accounting value of a share, equal to common equity divided by the number of shares outstanding.
Market value is current price of the stock. If the profitability, liquidity, asset and debt management is good market value will probably be as high as can be expected.
From the analysis of five years data we will try to find out the problems and reasons of changes in the Market value of from the price of Tk. 250.00 per share at the beginning of 2005-2006, to Tk.782 .25 at the end of 2008-09. Initially the book value of the share of the company is Tk. 185.67 per share and at the year 2009 it become 390.01
So from the data it is evident that the Market value is substantially greater than the book value. So we can say for our concern company that,
Market value > Book value
So this is good news for company. So, Company is enjoying a healthy financial status. In our report we shall diagnose all the data and we shall established the reason behind the fact.
We will also look how PCGB is managing the Liquidity, Asset, Debt, and...