LETTER OF TRANSMITTAL

January16, 2010. Mohammad Ashfaqur Rahman Lecturer Department of Finance University of Dhaka.

Dear Sir, We have the pleasure to inform you that we are going to submit the report that you had assigned us for the course Investment banking and lease financing, F-403. The report is done on Analysis of leasing sector in Bangladesh-a case study for IIDFCL. To prepare this report we follow your lecture in the class & the related documents. We sincerely hope that, you will enjoy going through this report, as we have felt great pleasure to prepare it. If any other information is required for further clarification, we will be pleased to provide you with it. Finally, we would like to thank you for providing us the opportunity to work in such an interesting and enthusiastic report as we have enjoyed as well as learned a lot in working this report. Yours sincerely, Sheikh Fahmida (On behalf of the group members) BBA (12th batch), Sec: A Department of Finance University of Dhaka

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ACKNOWLEDGEMENT

Nothing can be accomplished alone. Without the help of the number of persons the success remains silent. The people of the company are assisting us to prepare the report. First, we want to pay our gratitude to almighty Allah for the preparation of the report successfully. Then, we express our gratitude and acknowledge our indebtedness to our relevant course teacher Mohammad Ashfaqur Rahman for his overall co-operation, guidance, advice, and support in discharging our responsibility consciously and preparing this report. We are also thankful to our parents for their assistance to carry out this report. Our parents and family members support financially as well as mentally to carry out such an extensive report. So it is worthwhile to show my gratitude to them for their unconditional assistance. Finally we greatly appreciate the co-operation and help we have received from our fellow students and others.

EXECUTIVE SUMMARY ii F-403: INVESTMENT BANKING AND LEASE FINANCING

Topic Outline: Forward On May our course instructor (F-403) Mohammad Ashfaqur Rahman of Finance Department assigned us a study to discuss about Analysis of leasing sector in Bangladesh-a case study for IIDFCL Purpose The purpose of this study is to provide the assignor a complete illustration about Analysis of leasing on IIDFCL. Research Method The term assignment was prepared maintaining the following Steps: Theoretical discussions are from teachers lectures. Discussed the information. Information from our knowledge Information from the IIDFCL Prepared the report. Forward Purpose Research Method Findings

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ORIGIN OF THE REPORT This report, entitled Analysis of leasing sector in Bangladesh-a case study for IIDFCL, is prepared for Mohammad Ashfaqur Rahman, Lecturer, Department of Finance, University of Dhaka. The report is being submitted to fulfill the partial requirements of the course Investment banking and lease financing, F-403. OBJECTIVE OF THE REPORT The primary purpose of the report is the fulfillment of the course requirement. The main objectives of the report are as follows: To fulfill the partial requirement of the Investment banking and lease financing course offered in BBA program in 12th batch. To provide the methodological way to analyze a leasing companys annual report To provide the real life application of financial techniques in analyzing the annual report of a leasing company. To meet the curiosity in this stated subject. To enable us to improve our skills on report writing. As corporate executive put great value on report writing as an important element in management success, this part of the course will prepare us to face the future challenges of corporate world.

SCOP OF THE REPORT The study was conducted on the annual report of a IIDFCL. So the report is mainly accumulating some topics of finance which are: Corporate goal of leasing company Products and services Financial statements and analysis Corporate governance structure Cost of fund problem and solution

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Cost of capital and capital structure Working capital

METHODOLOGY
PRIMARY DATA

Personal observations Collect information from DSE Face to face conversation with officers of IIDFCL
SECONDARY DATA

Annual report of IIDFCL Different academic text books. Different publications of Dhaka Stock Exchange ltd. Different public newspapers and publications Website of IIDFCL To present our analysis and findings in analytical way, we implemented some tools which include:
STATISTICAL TOOLS

Sensitivity analysis Scenario analysis Value per share calculation

FINANCIAL TOOLS

Ratio analysis Capital structure analysis Calculating WACC.

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LIMITATION In every step of our life, we face some problems or limitations in doing work. So, there are also some limitations come while preparing this report. Such as: Time Constraint: If we had more time to collect information on the leasing sector of IIDFCL then our report would be prepared in a more complete manner. Lack of Experience: Due to lack of experience, there is a chance of having some mistake in the report though best effort has been applied to avoid any kind of mistake. Lack of Information: Financial information collected for the assignment is entirely primary and secondary in nature in such a case; it carries all the limitation in hereunto with primary and secondary data and financial information. It has been undertaken only through the analysis of quantitative financial data. The qualitative aspects have not been considered.

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v F-403: INVESTMENT BANKING AND LEASE FINANCING