Professional Documents
Culture Documents
INTRODUCTION
To fulfill this requirement I worked as an intern in Jamuna Knitting & Dyeing for the
Internship my preference was in garments sector. I submitted resume to different
institutions but appointed as an Internship trainee of the Jamuna Knitting & Dyeing.
My assigned topic is Financial Analysis of Jamuna Knitting & Dyeing Knitting Dyeing
which is assigned by my supervisor in the department. On the basis of working
experience in the Internship period I have prepared this report and I have tried my level
best to relate the theoretical knowledge with the practical work situation.
1
1.3 Company Profile
As an evolving private company that has continually grown within the competitive
industry in Bangladesh, Jamuna Group possesses high values, but the most crucial value
of the company is its human resource and the Managing Director, Mr. Md. Nurul Islam.
The name, Jamuna group is inseparably associated with the name of Mr. Md. Nurul
Islam, an architect a pioneer ultimately an Industrial leader in the private sector. He
heralded the Jamunas appearance in the arena of private industrial sector in 1974 with the
mission and vision of building newly independent Bangladesh as a happy and prosperous
country. Jamuna started its journey with the Jamuna Electric Manufacturing Co. Ltd in
1974 and it pioneered the manufacturing electrical accessories and fittings in Bangladesh
since 1975. There after JGI flourished as a giant conglomerates as shown in the
chronology.
Jamuna has a strong goodwill for its products and operation in both local and global
market. It is imperative to point out that Jamuna has built up a new World of textile with
the best technology and machinery imported from Germany, Switzerland, USA, Japan,
India, Italy etc. for producing the best quality products for the global market.
Jamuna has diversified its business from manufacturing to media industry. One of the
most significant and powerful subsidiary of Jamuna Group is THE DAILY JUGANTOR,
which is one of the leading newspaper of Bangladesh. The Jugantor is the rare
achievement of the Group, with the motive to protect human rights and provide true and
2
fair news to the nation. It has occupied the heart of the common people of Bangladesh by
championing their grievances and upholding their democrative rights pro-people,
responsible and transparent journalism is its inherent philosophy and guiding force for
playing a role of the BECON STAR in the world of the print media.
Jamuna group is also involved real estate development and one of the biggest project it
has undertaken is The Future Park. The project is located at Baridhara, Dhaka on 33
acres of land. The Future park is emerging as a centre of excellence for premier cluster of
large scale enterprises like most lucrative and an aesthetic biggest shopping mall cum
commercial complex in Asia, a modern television building (centre) a modern 500 beds
Hospital, a Five Star Hotel etc in the same premises.
Our Goal
Apply more sustainable practices in our operation; and Educate its employees and
customers about how they can make a difference.
Jamuna is environment friendly. We are very much careful about our environment so
that water and flora fauna around us are not adversely affected.
3
Objective:
to accomplish our vision and Mission we are constantly parsing for besetment of socio-
economic life of our people
I worked in this company (Jamuna Knitting & Dyeing Ltd.) Jorun, Konabari,
Gazipur as an accounts Department.
4
CHAPTER TWO
DESCRIPTION OF THE TOPIC
2.1 Topic
Financial Performance Analysis of Jamuna Knitting & Dyeing.
The first step in the process of employees performance of Jamuna Knitting & Dyeing is
the setting up of the standards which will be used to as the base to compare the actual
performance of the employees. Generally Jamuna Knitting & Dyeing requires setting the
criteria four aspects to judge the performance of the employees as successful or
unsuccessful and the degrees of their contribution to the organizational goals and
objectives.
Performance appraisal is the process of Jamuna Knitting & Dyeing by which an
employees contribution to the organization during specific period of time is assessed by
his or her supervisor. There are some methods are as follows:
Annual confidential report is the power full performance analysis of the Jamuna
Knitting & Dyeing
Honesty,sincerity,punctuality,religious,smartness,skillfulness,intelligence and power
of judgement, professional knowledge and skill, ability to make decision and well
leadership quality, willingness and ability to train up subordinates, knowledge in
Jamuna Knitting & Dyeing
Appraise the employees on the basis of age who are working for a long time.
5
related to money and markets. To raise money through the issuance and sale of debt
and/or equity.
Furthermore, the one word which can easily replace finance is Exchange. Finance is
nothing but an exchange of available resources. Finance is not restricted only to the
exchange and/or management of money. A barter trading system is also a type of finance.
Thus, we can say, Finance is an art of managing various available resources like money,
asses, investments, securities, etc.
At present, we cannot imagine a world without Finance. In other words, Finance is the soul
of our economic activities. To perform any economic activity, we need certain resources,
which are to be pooled in terms of money (i.e. in the form of currency notes, other
valuables, etc.). Finance is a prerequisite for obtaining physical resources, which are needed
to perform productive activities and carrying business operations such as sales, pay
compensations, reserve for contingencies (unascertained liabilities) and so on.
Hence, Finance has now become an organic function and inseparable part of our day-to-day
lives. Today, it has become a word which we often encounter on our daily basis.
6
CHAPTER THREE
DATA COLLECTION AND PROCESSING
SOURCE OF DATA
PRIMARY SECONDARY
DATA DATA
Secondary Source
i) Company website.
ii) Practical working experience.
iii) Annual report of Jamuna Knitting & Dyeing
iv) Study of different files and documents
7
CHAPTER FOUR
RESULTS AND DISCUSSIONS
Both internal and external users require this document. Internal users like manager
need to know how much revenue and expense the business is making. The
external users like the Chairman or other investors need to know if the company is
a making profit or not. Government entities, like Tax authorities need to know
what is the Net Income or Loss of the company and how much income tax the
group is paying.
8
Sales Revenue Analysis of 2011
Particulars 2011
Cost of Materials 57%
Salary, Wages and Benefits 17%
Depreciation 3%
Electricity and Fuel 1%
Other Expenses 14%
Income Tax 1%
Profit after Tax 7%
Source: Annual Report of Jamuna knitting & dyeing 2011
50%
40%
Axis Title
30%
20%
10%
0%
Salary,
Cost of Wages Depreciati Electricity Other Income Profit
Materials and on and Fuel Expenses Tax after Tax
Benefits
Series1 57% 17% 3% 1% 14% 1% 7%
Interpretation:
The graph show in 2011 Cost of Materials 57%, Salary, Wages and Benefits 17%,
Depreciation 3%, Electricity and Fuel 1%, Other Expenses 14%, Income tax 1% and Profit after
tax is 7%.
9
Sales Revenue Analysis of 2012
Particulars 2012
Cost of Materials 59%
Salary, Wages and Benefits 18%
Depreciation 3%
Electricity and Fuel 1%
Other Expenses 12%
Income Tax 2%
Profit after Tax 5%
40%
30%
20%
10%
0%
Salary,
Cost of Wages Depreciati Electricity Other Income Profit
Materials and on and Fuel Expenses Tax after Tax
Benefits
Series1 59% 18% 3% 1% 12% 2% 5%
Interpretation:
The graph show in 2012 Cost of Materials 59%, Salary, Wages and Benefits 18%,
Depreciation 3%, Electricity and Fuel 1%, Other Expenses 12%, Income tax 2% and Profit after
tax is 5%.
10
Sales Revenue Analysis of 2013
Particulars 2013
Cost of Materials 59%
Salary, Wages and Benefits 17%
Depreciation 3%
Electricity and Fuel 1%
Other Expenses 12%
Income Tax 2%
Profit after Tax 6%
40%
30%
20%
10%
0%
Salary,
Cost of Wages Depreciati Electricity Other Income Profit
Materials and on and Fuel Expenses Tax after Tax
Benefits
Series1 59% 17% 3% 1% 12% 2% 6%
Interpretation:
The graph show in 2013 Cost of Materials 59%, Salary, Wages and Benefits 17%,
Depreciation 3%, Electricity and Fuel 1%, Other Expenses 12%, Income tax 2% and Profit after
tax is 6%.
11
Sales Revenue Analysis of 2014
Particulars 2014
Cost of Materials 59%
Salary, Wages and Benefits 18%
Depreciation 3%
Electricity and Fuel 1%
Other Expenses 12%
Income Tax 2%
Profit after Tax 5%
40%
30%
20%
10%
0%
Salary,
Cost of Wages Depreciati Electricity Other Income Profit
Materials and on and Fuel Expenses Tax after Tax
Benefits
Series1 59% 18% 3% 1% 12% 2% 5%
Interpretation:
The graph show in 2014 Cost of Materials 59%, Salary, Wages and Benefits 18%,
Depreciation 3%, Electricity and Fuel 1%, Other Expenses 12%, Income tax 2% and Profit after
tax is 5%.
12
Sales Revenue Analysis of 2015
Particulars 2015
Cost of Materials 61%
Salary, Wages and Benefits 15%
Depreciation 3%
Electricity and Fuel 1%
Other Expenses 12%
Income Tax 2%
Profit after Tax 6%
Source: Annual Report of Jamuna knitting & dyeing -2015
60%
40%
20%
0%
Salary,
Cost of Wages Depreciati Electricity Other Income Profit
Materials and on and Fuel Expenses Tax after Tax
Benefits
Series1 61% 15% 3% 1% 12% 2% 6%
13
Balance sheet is needed to show the internal users that what is the current state of the
business? And how much assets or liability it has? For the external users like investors,
creditor and government authorities it indicates how fast the company can be liquidated?
Financial analysts often assess the company's:
A. Liquidity Ratio
B. Profitability Ratio
C. Solvency Ratio
D. Market Ratio
A. Liquidity Ratio
The liquidity of a business firm is measured by its ability to satisfy its short-term
obligations as they come due. Liquidity refers to the solvency of the firm's overall
financial position - the ease with which it can pay it bills and "liquidity ratio" deals with
this question.
B. Profitability Ratio
The profitability of a business firm is measured by its ability to earn income and sustain
growth in both short-term and long-term. A company's degree of profitability is usually
based on the income statement, which reports on the company's results of operations.
C. Solvency Ratio
The solvency of a business firm is measured by its ability to pay its obligation to
debtors and other third parties in the long-term. This is mainly determined based
on the companys balance sheet.
D. Market Ratio
Market ratio measures return to stockholder and the value of the market place puts
on a companys stock. Market ratios of particular interest to be investor are- EPS,
PE.
A. Liquidity Ratios
Liquidity ratios measure the short-term ability of the company to pay its maturing
obligations and to meet unexpected needs for cash. Liquidity ratios mainly show
the current asset to current debt ratio. The ratios are used to determine the
enterprises short-term debt paying ability. Short-term creditors such as bankers
and suppliers are particularly interested in assessing liquidity. I have performed
two measures to find out liquidity ratio of Jamuna knitting & dyeing
1. Current Ratio
2. Acid Test (quick) ratio
3. Receivable Turnover
4. Inventory Turnover
14
a. Current ratio:
It is the widely used measure for evaluating a companys liquidity and ability to meet
its short term obligations. The current ratio is calculated by dividing current assets by
current liabilities. It can also be expressed as: The liquidity ratio of Jamuna knitting &
dyeing for the last five years is as follows:
Current Ratio = Current Assets / Current Liabilities.
Particulars 2011 2012 2013 2014 2015
Current Assets 2000 2760.25 3234.56 4546.95 5134.26
Current Liability 525.64 724.64 865.46 1032.64 1398.54
Current ratio 3.80 3.81 3.74 4.40 3.67
Table: Current Ratio
Current Ratio
4.6
4.4
4.2
4
3.8
3.6
3.4
3.2
2011 2012 2013 2014 2015
Current Ratio 3.8 3.81 3.74 4.4 3.67
Year
15
b. Quick ratio or Acid Test ratio:
It is another important financial tool which is used for measuring the ability of an
enterprise to meet immediate short-term obligation and reflect the short-term financial
strength of a firm. The quick ratio is similar to the current ratio that it excludes
inventory, which is generally the least liquid current asset. The ratio can be computed by
dividing the sum of cash, short-term investments and net receivable by current liabilities.
It is an important complement to the current ratio. It can also be expressed as:
Quick Ratio = (Current Assets Inventory) / Current Liabilities
The quick ratio of Jamuna knitting & dyeing for the last five years is as follows:
16
c. Receivable Turnover
The ratio which is used to assess the liquidity of the receivable is receivable turnover. It
measures the number of times on average the company collects receivables during the
period. It can be computed by dividing net credit sales (net sales less cash sales) by the
average net receivable as follows:
Receivable Turnover = Net Credit Sales/Average Net Receivable
The Receivable Turnover of Jamuna Knitting & Dyeing for the last five years is as
follows:
Particulars 2011 2012 2013 2014 2015
Credit Sales (Billion) 100 114.6 112.3 134.3 141.8
Net Receivables 124.25 153.48 169.85 197.26 186.24
Average Net Receivables 118.1 138.865 161.665 183.555 191.75
Receivable Turnover 0.85(T) 0.825(T) 0.69(T) 0.73(T) 0.74(T)
Table: Receivable Turnover
Receivable Turnover
1
0.8
0.6
0.4
0.2
0
2011 2012 2013 2014 2015
Recievable Turnover 0.85 0.83 0.69 0.73 0.74
Year
17
d. Inventory Turnover:
Inventory Turnover measures the number of times on average the inventory is sold
during the period. The purpose is to measure the liquidity of the inventory. It can be
computed by dividing cost of goods sold by the average inventory as follows:
Inventory Turnover = Cost of Goods Sold/Average Inventory
The Inventory Turnover of Jamuna Knitting & Dyeing for the last five years is as
follows:
Inventory Turnover
40
30
20
10
0
2011 2012 2013 2014 2015
ROA 21.407 21.836 27.019 37.374 20.55
Year
Figure: Inventory Turnover
18
B. Profitability Ratios
Profitability ratios measure the income or operating success of a company for a given
period of time. Income or the lack of it, affects the companys ability to obtain debt and
equity financing. It also affects the companys liquidity position and the companys
ability to grow. As a consequence, both creditors and investors are interested in
evaluating earning power i.e. profitability. Analysts frequently use profitability as the
ultimate test of managements operating effectiveness. I have used five measures to find
out profitability ratio-
a. Profit Margin:
It measures the percentage of each dollar of sales that results in net income. It can be
computed by dividing net income by net sales as shown below:
Profit Margin on Sales = Net Income/ Net Sales
The profit margin of Jamuna Knitting and Dyeing for the last five years is as follows:
Particulars 2011 2012 2013 2014 2015
Net Sales 530.03 623.55 561.29 716.26 837.76
Net Income 379.98 420.72 370.78 512.37 564.28
Profit Margin 71.69% 67.47% 66.06% 71.53% 67.36%
Table: Profit Margin on Sales
Profit Margin
74
72
70
68
66
64
62
2011 2012 2013 2014 2015
Profit Margin 71.69 67.47 66.06 71.53 67.36
Year
Figure: Profit Margin in Percentage
19
b. Asset Turn Over:
It measures how efficiently a company uses its asset to generate sales. It is determined by
dividing net sales by average assets. The resulting number shows the dollars of sales
produced by each dollar invested in assets. These ratios vary considerably among
industries. It can be computed as follows:
Asset Turn-Over
0.3
0.25
0.2
0.15
0.1
0.05
0
2011 2012 20132 2014 2015
Asset Turn-Over 0.24 0.22 0.16 0.16 0.15
Year
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c. Return on Assets:
An overall measure of profitability is return on assets. It Measures how much revenue is
earned by utilizing assets. It can be computed by dividing net income by average assets
as follows:
Return on Assets =Net income/Average Assets
The Return on Assets of Jamuna Knitting and Dyeing for the last five years is as follows:
0.2
ROA
0.15
0.1
0.05
0
2011 2012 2013 2014 2015
ROA 0.169 0.146 0.105 0.114 0.103
Year
Figure: Return on Assets (ROA) in percentage
21
d. Return on owners equity:
Another widely used profitability ratio is Return on Equity. It measures the profitability
of owners investment. The ratio shows how many dollars of net income the company
earned for each dollar invested by the owners. It can be computed by dividing net
income by average owners equity as follows:
Return on Owners equity = Net income / Average owners equity.
The Return on owners equity of Jamuna Knitting and Dyeing Ltd. for the last five years
is as follows:
Particulars 2011 2012 2013 2014 2015
Net Income 379.98 420.72 370.78 512.37 564.28
Owner's Equity 1200 1500 1900 2500 2800
Average 1050 1350 1700 2200 2650
Return on owners equity 0.362 0.312 0.218 0.233 0.213
Table: Return on Owners equity
e. Debt to total asset ratio: It measures the percentage of total assets provided by
creditors.
22
f. Earnings per Share (EPS):
It measures net income earned on each number of common stock.
23
Summary of Financial Analysis of Jamuna Knitting and Dyeing Ltd.
24
4.3 Trend Analysis of Performance of Jamuna Knitting & Dyeing
The current ratio of 3.80 in 2011 was gained its value in 2013 (3.74) and 2014 (4.40),
although slightly fell in 2015 (3.67). The current ratio provides the best single indicator
extent to which claims of short term creditors are covered by assets that are expected to
be converted to cash quickly. So the ratio 3.67 indicates that the company has short term
solvency.
The trend in quick ratio although was poor in 2012 (3.33) and 2012 (3.18) compare
with 2011 (3.36), but improved remarkably in 2013 (3.77). Although, it was lost its
stability in 2015 (3.11). But, it can be said that The Jamuna Knitting & Dyeing can
pay its obligations without having to liquidate its inventory.
Profit margin on Sales trend was 71.69% in 2010 but year after year it was going to
decline and finally, in 2015 it was stand for 67.36%. Therefore, the profit margin of
Jamuna Knitting & Dyeing is stable between 67% and 71%.
Asset Turnover was declining over the three consecutive years i.e. the asset turnover
ratio was 0.16, 0.16 & 0.15 for the year 2013, 2014 & 2015 respectively. Therefore,
sales of Jamuna Knitting & Dyeing were not increased for each number of currencies
of assets.
Returns on assets were relatively high in 2011. It was declining to 0.146, 0.105,
.0114 and 0.103 which was not a good sign for the company. In the year 2012 it was
decreased remarkably to 0.105
Return on Equity was declining year after year too. In 2011, it was 0.362, but in
2015, it was only 0.213. So, it is the bad signal for the owners that their invests could
not enhance net income of the company.
25
4.4 Prospective Analysis of Jamuna Knitting & Dyeing
Most financial statement analysis tasks are undertaken with a forward-looking decision
in mind. And mush of the time, it is useful to summarize the view developed in the
analysis with an explicit forecast. Managers need forecasts for planning and to provide
performance targets, analysis need forecasts to help communicate their view of the
companys prospects to investors, bankers and debt market participants need forecast to
assess the likelihood of loan repayment. Moreover, there are a variety of contexts
(including but not limited to security analysis) where the forecast is usefully summarized
in the form of an estimate of the firms value. By the way, for forecasting 2015 of
Jamuna Knitting & Dyeingat first I have tried to highlight the sales growth of this group
by analyzing previous sales record. Then I have tried to forecast other part of income
statement and balance sheet based on sales growth. So, lets show the forecast to 2015 of
Jamuna Knitting & Dyeing
Particulars 2011 2012 2013 2014 2015
Net Sales 530.03 623.55 561.29 716.26 837.76
1+g Forecast
Net Sales 1.121256 837.76 939.34
Cost of Sales 1.121256 60.11 67.39
Direct Expenses 1.121256 45.23 50.71
Indirect Expenses 1.121256 14.88 16.68
Gross Profit 1.121256 777.65 871.94
Operating Expense 1.121256 16.32 18.29
Financial Charge 1.121256 52.88 59.29
Operating Income 1.121256 708.58 794.49
Other Income 1.121256 1.79 2.01
Miscellaneous Income 1.121256 0.93 1.04
Net Income Before Tax 1.121256 704.64 790.08
26
CHAPTER FIVE
FINDINGS, RECOMMENDATIONS & CONCLUSION
5.1 Findings of the Study
Satisfactory Liquidity position
The liquidity position of satisfactory than Jamuna Knitting & Dyeing Ltd. It implies that
JKDL can manage its current liabilities and current assets in a good way than Jamuna
Knitting & Dyeing Ltd.
Good Efficiency ratios
The efficiency ratios of Jamuna Knitting & Dyeing Ltd are in good position.
Low Capital turnover ratio
Low working capital turnover ratio of Jamuna Knitting & Dyeing Ltd indicates that
management is being extremely efficient in using a firm's short-term assets and liabilities
to support sales.
Inventory turnover ratios not satisfaction
Over the last five years the inventory ratio are not satisfaction are not good position.
Profitability ratios
From the viewpoint of profitability ratios is Jamuna Knitting & Dyeing Ltd of compare
the last five years better position.
The overall performances of all the companies are moderately satisfactory.
5.2 Recommendations
Aware to maintain more liquidity.
Jamuna Knitting & Dyeing Ltd have to be aware to maintain more liquidity. They have
also managed plenty current assets.
Manage its asset more efficiently
Jamuna Knitting & Dyeing Ltd have to manage its asset more efficiently to generate
more revenue.
Control the inventory turnover
The management has to control the of inventory turnover of Jamuna Knitting & Dyeing
Ltd
Give attention to the inventory turnover
The company has to give attention to the inventory turnover. If inventory turnover
remains slower then the company can face the liquidity problem.
Working capital turnover ratio
The lower working capital turnover ratio implies poor usage of the working capital in
Jamuna Knitting & Dyeing Ltd. They have to increase their turnover ratios for better
efficiency in business.
Increase their repay capability.
Jamuna Knitting & Dyeing Ltd have to increase their repay capability.
27
5.3 Conclusion
This study helps to know that the companys financial position, changes in financial
statements i.e. increase or decrease in the liabilities and assets. By the ratio analysis we
come to know that the companies solvency. The company has to take some measures to
control the costs.
This study helps us to know that the overall companys financial position is appreciable.
But some of the units incur losses because the high expenses, political conditions and
management conflicts in present years. So they have to control those problems. By the
analysis of financial statements I conclude that, overall financial performance of the
company is satisfactory.
28
CHAPTER SIX
INTERNSHIP EXPERIENCE
6.1 Internship Position
I was given the opportunity to work in Jamuna Knitting & dyeing it was part of my
academic program. In the internship period I have no specific position. So I have no
fixed duties in the organization. I work under a manager and observed his different types
of activities. I prepared this report on the basis of that observation.
6.2 Duties
Specific duties regarding my internship position explained below:
File documentation: File documentation is one of the main responsibilities regarding
my internship in this organization. I had to collect, and arrange, various types of official
document according to their importance.
Coordination with creative department: I had to coordinate with the creative
department of Jamuna Knitting & dyeing in their various types of creative work.
Supporting and providing contentious collaboration with their specific tasks.
Data collection: I had to go to the field for collecting various types of task related
information, which are very much essential for successful arrangement of a product.
Through field visit I had determine the total output regarding the expectation of a
Jamuna Knitting & dyeing.
Coordination among department: I had to coordinate with different department of the
organization.
Arraigning material for the in house meeting: There were a huge number if meeting
during my internship in my organization. I had to collect different types of materials for
those meetings.
Entry of information in office document and soft copy: I had to input office
documents and update the office document. Data entry and database management is
remarkable of them.
29
REFERENCES
Reference:
1. Financial Statement Analysis, Fifth Edition-Leopold A. Bernstein
2. Financial Management- Theory & Practice, 10th Edition- Eugenne F. Brigham &
Michael C. Ehrhardt
3. Financial Management, Third Edition M Y Khan & P K Jain
4. Financial Statements of Jamuna Knitting & Dyeing from 2011 to 2015. Garrison,
Ray H and Noreen, Eric.W. (2008-2009) Managerial Accounting (12th Edition)
International Edition McGraw-Hill.
5. Madura Jeff (2006) Financial Markets & Institutions (7th Edition) Thomson
South Western.
6. Principles of Managerial Finance by Lawrence J. Gitman
7. Riggs H.E, (1994) Financial & cost Analysis Foe Engineering & Technology
Management. Edition New York Jhon Wiley & Sons, Inc.
8. https://www.google.com
9. https://www. jamunagroup.com.bd
10. https://www. jamunaknittingdyeing.com.
30
Appendices
Jamuna Knitting & Dyeing
Year-Wise Financial Highlights
As at 31st December 2011& 2015
31
Income Statement
As at 31st December 2011 & 2015
Consolidated Income Statement of Jamuna Knitting & Dyeing
The consolidated Income Statements shows the records of revenues and expenses for the last 5
fiscal years (2011 - 2015).
(In Billion)
32
Year-Wise Sales Revenue
33