Internship Report

On
Financial Performance Analysis of Transcom Mobile Ltd
Supervised by
Md. Shamim Hossain Senior Lecturer
in Accounting Department of Business
Administration Manarat International
University

Prepared by
A.K.M. Mahmadur Rahman
ID # 1129BBA01817
Manarat International University

Manarat International University

Letter of Transmittal

Date: December 20, 2014

To
Md. Shamim Hossain
Senior Lecturer in Accounting
Department of Business Administration
Manarat International University
Subject: Submission of Internship Report
Dear Sir:
It is my pleasure to submit my Internship Report on Financial performance analysis of
Transcom Mobile Ltd, as a part of my BBA final examination. Though its a new
experience for me, I tried my best to gather relevant information for preparing a complete
paper on this subject. Without the sincere co-operation and proper guidance of you, it was
not possible for me to prepare the report. For this act of kindness I am grateful to you.
This paper is not totally free from mistake due to some unavoidable limitations. I hope
you will accept it with gracious consideration.
Yours faithfully
Thank you.

A.K.M. Mahmadur Rahman

ID # 1129BBA01817
Manarat International University

DECLARATION

I, A. K. M. Mahmadur Rahman, am responsible for writing this report on Financial

performance analysis of Transcom Mobile Ltd. I include all the reference & was not
involved in any kind of plagiarism. I am well aware of the legal actions against plagiarism
& MIU faculty or the University is not responsible for bears any costs regarding
plagiarism.
I declare that I am solely responsible for my actions & that if any of the above happens, I
will not pursue any legal action against said personalities.

A.K.M. Mahmadur Rahman

ID# 1129BBA01817
Department of Business Administration
Manarat International University

Certificate of the supervisor

This is to certify that the internship report titled Financial
Performance Analysis of Transcom Mobile Ltd in the born fide
record the report, has been prepared by A.K.M. Mahmadur
Rahman bearing ID # 1129BBA01817 as a partial fulfillment of the
requirement of Bachelor of Business Administration (BBA) degree
from the Department of Business Administration of Manarat
International University.
The report has been prepared under my guidance and in a record
of bona fide work carried out successfully

Md. Shamim Hossain

Senior Lecturer in Accounting
Department of Business Administration
Manarat International University

ACKNOWLEDGEMENT

This report would have been impossible without the valuable contributions
and limitless help of several individuals. First, my thank goes to Almighty
Allah that my project has been done on time.
I feel honored to lay my sincerest gratitude to my honorable supervisor, Md.
Shamim Hossain, Senior Lecturer in Accounting, Department of
Business Administration, MIU for helping me in preparing this project.
I would like to thank all the staffs, executives and my office supervisor of
Transcom Mobile Limited, Sadar Road, Mohakhali and Dhaka for
helping me out to collect necessary information regarding this project.
I have been benefited from many people in the evolution of this report. They
have generously supplied insightful comments, helpful suggestions, and
contributions all of which have progressively enhanced this report.
The selection of company is always vital to successful study. In this report,
my appreciation goes to executives and managers of Transcom Mobile
Limited who have provided worthy information and contributed their
valuable time.

Executive summary
Internship is a part and parcel of BBA program. Every student must need to take part in
internship if they want to complete BBA. By internship program student get real
experience of the field work. Students are able to know how an organization is operated.
I took part in internship in Transcom Mobile Ltd. Transcom established in 1885 and till
now it carries out its work by fulfilled peoples satisfaction. Only few companies are
available in the Bangladesh which passed 100 years in business carrier. It creates new
strategy in business area and expanding day by day. It divided customer in different area
by their age, class, city, etc. Transcom Mobile Ltd is a part of Transcom Group.
My internship report made on Financial performance Analysis of Transcom Mobile
Ltd. As a student of BBA, with major in finance, it is important for me to analysis
financial performance of Transcom Mobile Ltd. Because finance is a subject where in
every steps involve analysis of financial data for getting information of companys
performance. This is the main objective of this report.
This report has 4 parts. First part is introduction, where I describe reason of the study,
way of data collection, processing, full expansion of report objective, scope and limitation
of the study. In second part, I give information about Transcom group. Here I give
information of all company include in Transcom group, function of Transcom mobile,
there financial data, and SWOT analysis.
Third part is the main part of this report. Here I analysis financial data of Transcom
mobile. This part made by ratio analysis and several point. This part also includes finding
which was made by my observation. The last part is recommendation and conclusion.
Here I recommended several points which come out findings. Finally the report end
through conclusion.
Day by day TML will go to improve by fulfill the customer demand and providing better
service.
I hope TML will continue this journey.
ii

Contents
Particulars
Chapter 1

Chapter 2

Chapter 3

Chapter 4

Page

Introduction

Background of the study

Rational of the study

Objective of the study

Methodology of the study

Scope of the study

Limitations of the study

About Transcom

Mission of Transcom

Nature of Business

Organizational overview

Function

14

Organizational diagram

15

Share of the company

15

Financial information

16

SWOT Analysis

20

Financial Analysis

22

Ratio Analysis

26

Findings

33

Recommendation

34

Conclusion

35

iii

CHAPTER 1
Introduction

1.1 Introduction

Nowadays business is changing day by day based on the development. Every day new
technologies are developed, plans are implemented, human powers are involved,
techniques are created to speed up the progress, rivals are seen in all sectors, services
are provided to satisfy the customer, and therefore, all these are take part in the
business arena. So there is competition in business sector. In order to face the
competitive business area, a business organization need to develop its service, recruit
efficient human and technological power, analysis competitor benefit, and their own
performance analysis and so on. And the business which can adopt these things as
quickly as possible, it can exist long in the business arena.
Transcom is one of the companies which exist in business arena near about 125 years.
Due to provide better performance in the business, it still exists. Day by day it
changed its business techniques, plans, properly manages its human resource,
generates new ideas, analysis competitor performance and exists in business.
1.2 Background of the study
Every BBA student needs to do internship program for completing under graduation,
under the supervision of the supervisor. Due to this reason, I completed my internship
in Transcom Mobile Ltd, in corporate section. I found a corporate environment to
work in Transcom Mobile Ltd that helps me to get knowledge. I comply with the
concerned rules made by the authority. I made my internship report on the topic of
Financial performance Analysis of Transcom Mobile Ltd.
1.3 Rational of the study
In todays world only academic education does not make a student perfect to become
competitive with the outside world. So internship is highly needed to gain idea,
knowledge and experience.

Page 1 of

35

I choose my internship topic Financial performance Analysis of Transcom

Mobile Ltd. As a student of BBA, with major in Finance, it is very important for me
to analysis financial performance of a company. As a student of finance, I need to
gain analytical ability/power via this report which I have prepared.

Page 2 of

35

1.4 Objective of the study

Broad objectives
The main objective of the study is to evaluate the financial performance of the
Transcom Mobile Ltd.
Specific objectives
Under a broad objective the study focused on some several activities for
comprehending an overall review.
I.
II.

To understand the corporate environment

To make SWOT analysis of TML.

III.

To make the selling process of the corporate sales of TML.

IV.

To make out credit policy of the corporate customer of TML.

V.

To analysis the Financial performance of TML

1.5 Methodology of the study

a) Study Design
The study was fully a descriptive in nature. The study was conducted using the
participatory method. To know the in-depth information, the topic was discussed
with the expert professionals related to Transcom Mobile Ltd for several times
and review of record of Transcom Mobile Ltd and other related secondary
information. The purpose was to get an idea about the whole activities of the
office where I did my practical orientation. Statistical data and other relevant
information were gathered from secondary sources including several journals and
booklets.
b) Data Collection method
a. Data have been collected from two sources. These are as under:
i)

Primary source

ii)

Secondary source
The primary sources of data include the followings:
1. Face to face conversation with the TML officers and staffs
2. Direct conversation with the clients
3. Study of different files of different sections of the TML
4. Practical Deskwork.

The secondary sources of data include as under:

1. Annual reports of Transcom Mobile Ltd
2. Different publications of Transcom Mobile Ltd
c) Data Processing
Collected information have then processed & compiled with the aid of MS Word,
Excel computer software. Necessary tables have been prepared on the basis of
collected data and various Assessments on corporate consumers buying behavior
on Transcom Mobile Limited have been applied to analyses on the basis of
classified information. Detail explanation and analysis have also been
incorporated in the report.
1.6 Scope & duration of the study
There are very little scope to describe all of the strategy and performance of the
Transcom Mobile Ltd in this report. All the things are describe as much as possible.
I did two month internship in Transcom Mobile Ltd and 3 month for prepared this
report.
1.7 Limitations of the study

There are shortages of information about the company.

There are shortages of companys several type of document.

Unfriendliness of providing companys document.

CHAPTER 2
Profile of the Organization

2.1 About Transcom

Originated with tea plantations in 1885, TRANSCOM today is one of the leading and
fastest growing diversified business houses in the country employing over 10000
people. Not many industrial groups in Bangladesh can claim a history of continuous
business pursuits stretching back over 125 years! Initially tea and later jute formed the
backbone of the family business. Although these are still part of the activities and
contributing marginally to the overall group turnover. Presently those early industrial
ventures have moved over to businesses involving high-tech manufacturing,
international trading and distribution, forming strong ties with a host of blue chip
multinational companies. In recent years, TRANSCOM has emerged as the largest
media house in Bangladesh.
2.2 Mission of Transcom
I.

To provide reliable and durable products and service solutions to meet the
changing needs of day to day lifestyle requirement of customers.

II.

To be the predominant and undisputed industry leader in the field of

lighting, electronics, electrical & mobile product.

III.

To build an organization with core competency in distribution and retail

with particular attention to complete customer satisfaction at every level
and at par with the best global standard practices.

IV.

To drive performance through passion, teamwork and innovation and be

committed for adding value to all our employees through regular training,
thus creating invaluable assets of our human resources.

2.3 Nature of Business

The company is engaged in import, purchase, assembles and carries on the business of
marketing, selling and distribution of mobile phone set of Samsung brand and
associated accessories.
2.4 Organizational overview
There are 14 companies under the Transcom group.

Companies & Associates

Transcom Electronics Ltd
Transcom Foods Ltd

Transcom Beverages Ltd

Transcom Mobile Ltd
Transcom Cables Ltd
Transcom Distribution Co. Ltd
Bangladesh Electrical Industries Ltd
Transcraft Ltd
Bangladesh Lamps Ltd
Eskayef Bangladesh Ltd
Mediastar Ltd
Tea & Rubber Farms
Mediaworld Ltd
Reliance Insurance Ltd
2.4.1 Transcom Electronics Ltd
Transcom Electronics Ltd (TEL) started its operation in 1993 by taking over
PHILIPS electronics and lighting business in Bangladesh.

Today, the company is one of the leading electronics and electrical company in
the country, marketing and distributing Consumer lighting, Consumer electronics,
Home Appliances and Professional lighting products from renowned brands
through its extensive distribution and retail network.
2.4.2 Transcom Foods Ltd

Transcom Foods Limited (TFL) started its journey in 2003 as a franchisee of Pizza
Hut, the first International Chain Restaurant in Bangladesh, and went on to sign
the contract to become the franchisee of Kentucky Fried Chicken (KFC) in the

year 2006. Both Pizza Hut and KFC are subsidiaries of the worlds largest
restaurant company Yum! Restaurants International. In a span of seven years, TFL
has opened 4 Pizza Hut and 7 KFC outlets so far throughout the country.

2.4.3 Transcom Beverages Ltd

Transcom Beverage Ltd (TBL) is the exclusive PepsiCo Franchisee for
Bangladesh. TBL owns and operates modern plants in Dhaka and Chittagong for
bottling the renowned soft drink brands such as, Pepsi, 7UP, Mirinda, Slice,
Mountain Dew, Pepsi Diet and 7UP Light. The company is emerging with the
motto to deliver sustained growth in Bangladesh and move towards dominant
Beverage Company, delighting & nourishing every Bangladeshi, by best meeting
their everyday beverages needs & stakeholders by delivering performance with
purpose, through talented people.

2009 has been an amazing year for TBL, winning several spectacular awards as
PepsiCo's exclusive bottling partner in Bangladesh. For its' extraordinary and
outstanding venture through excellence TBL has been rewarded with several
prestigious national and international recognitions.

2.4.4 Transcom Mobile Ltd

With a business heritage of 125 years, TRANSCOM has evolved and continues to
evolve as a diversified business entity to cater to the demands and needs for its
customers, keeping the trend of changing market scenario. TRANSCOM has now
become the distribution partner for the world famous brand SAMSUNG Mobile.

Transcom Mobile Limited (TML) is the TRANSCOM's latest venture into the
Mobile Handset business and the company is exclusively distributing Mobile
phones to all over the country. It started its' operation on 22nd June, 2010. At the
beginning it operated nearly half of the country and the resources was 35. At
present TML operates nationwide as a single distributor with trade marketing
operation of SAMSUNG Mobile.
2.4.5 Transcom Cables Ltd
Transcom Cables Limited is one of the largest conglomerates in Bangladesh has
established in July 2009 for manufacturing of cables, wires and Conductors. The
company started its' commercial production in May 2010. It's manufacturing
domestic and commercial power cables of international standards (ISO certified
factory) under the Transtec Brand and is currently marketing its product to
electrical outlets in Dhaka region and to institutional customers all over the
country. The range of its products includes PVC insulated cables, PVC insulated
and PVC sheathed single core and multi core cables, control cables, flexible
cables etc. The different sizes of bare and insulated All Aluminum Conductor
(AAC) and Aluminum Conductor Steel Reinforced (ACSR) are also being
manufactured here.

ables and Conductors are manufactured here according to Bangladesh Standard

(BDS), German Standard (VDE), and British Standard (BS), international
standard specification like BDS IEC. Bare and insulated AAC and ACSR
conductors are also manufactured here according to BS and ASTM. On demand,
cables and conductors are also manufactured here according to any International
Standard. The company is proud to be enriched by very well experienced
Production & Quality Management Team.
2.4.6 Transcom Distribution Co. Ltd
Transcom Distribution Company Limited (TDCL) has the largest independent
distribution setup in Bangladesh with full infrastructural facilities provided by a
countrywide network of

23 branch offices along with one main office, warehouses and delivery vans,
directly servicing over 8000 outlets throughout the whole country.
TDCL is an allied business company of TRANSCOM Groups responsible for
distributing multi-dimensional products across the country. The company started
its business with the distribution of quality pharmaceutical products manufactured
by ESKAYEF, NOVO NORDISK, SERVIER, ALLERGAN and consumer
brands like Frito Lay, Heinz, Wrigley, Mars, Energizer, Schick, L'Oreal, Garnier,
ConAgra Foods, McVities and Hemas. It started its diagnostic distribution
division in 1993 by distributing laboratory equipments and reagents from
Hettich(Germany), TREK Diagnostics(USA) and Fortress(UK). It also distributes
crude oil and oil products from Vitol. Basically TDCL has three distribution
divisions:
Bangladesh Electrical Industries Ltd
Bangladesh Electrical Industries (BEIL) is a leading producer of televisions and
radios in Bangladesh and is the official licensee of PHILIPS Electronics N.V.
Holland. The company was incorporated in 1960 as a subsidiary of PHILIPS,
Holland. In March 1993, PHILIPS sold its entire shares to TRANSCOM.

2.4.7

Bangladesh Lamps Ltd

Bangladesh Lamps Limited (BLL) is the pre-eminent manufacturer of electric
light bulbs in the country. The company has an exclusive licensing agreement
with PHILIPS Electronics N.V. Holland, under which it manufacturers PHILIPS
lighting products.

BLL was incorporated in 1960 as a subsidiary of PHILIPS, Holland. In March

1993, PHILIPS sold its entire shares to TRANSCOM. The primary purpose of
BLL is to produce and serve Philips GLS lamps (Classictone, Softtone and AntiInsect types) & Transtec CFL and GLS lamps (Clear & Lustre types) around the
country which are marketed and sold under the governance of Transcom
Electronics Ltd (TEL) as lightening distribution and sales projects. Due to the
necessity of cost effective electricity the TFL tech bulbs are populated and
distributed more and more everyday around the country, BLL became one of the
leading TFL bulb production houses.

In 2002 Transtec has officially come into the world of lighting business with tube
lights and started marketing lighting products nationwide. In 2003 Trasntec GLS
was introduced in the market. At that time Transtec GLS was available only up to
100 W clear but gradually it started producing GLS lamp in BLL with various
wattage range. Now, Transtec GLS is available in 25W clear, 40W clear, 60W
clear, 100W clear, 200W clear and Luster clear, Luster Blue, Luster Green, Luster
Red, Luster Yellow. All the wattage ranges ensure 1000 hrs (min) lifetime. High
Quality Filament delivers proper wattage & brighter light and Fuse wire ensures
safety of the system. Transtec Tube Light was available since 2002 in the market
with 18 W and 36 W product range .To make a brighter light, Phosphor coating &
Argon gas is used. The quantity of hazardous substance (e.g. mercury) in the tube
light is controlled, so it is more environments friendly. Transtec Starter were in
the market in 2003.

In 2005 TEL has added a new product range in lighting portfolio as Transtec
CFL (Compact Florescent lamp). After initial years of import, since the end of
2007 Transtec CFL is being produced at BLL and captured substantial market
share through its product superiority. It has a wide wattage range, classified in
Premium and Classic category with pin and screw type holders like: 8W, 11W,
15W, 23W, 26W, 30W. Considering the consumer benefit the product has been
developed to illuminate even at low voltage as 110 volts. It has built in short
circuit & over voltage protection feature & 8000 hrs (min) lifetime.
Since 2005 TEL is also into the business of tube light ballast with Transtec
Magnetic Ballast which gradually converted into Transtec Electronic Ballast and
started its own ballast production at Bangladesh Electrical Industries Ltd (BEIL)
in 2009. Having high power factor (0.9), Transtec Electronic Ballast saves 30%
of electrical energy. It can switch on the tube light at low voltage (even at 50
volts) and keeps the light output constant even at voltage fluctuation.TEL also
has a strong and experienced project team handling PHILIPS professional
lighting projects. Currently there are about 17,000 electrical outlets and 90,000
grocery outlets covered under the network.
2.4.8

Eskayef Bangladesh Ltd

Eskayef Bangladesh Limited (SK+F), a successor of Smith Kline and French in
Bangladesh was acquired by TRANSCOM in 1990, is one of the leading and
fastest growing pharmaceutical company of Bangladesh, which is engaged in the
manufacture and marketing of a wide range of therapeutic drugs, bulk pellets and
animal health and nutrition products with annual sales surpassing 60 million US
dollars. With qualified, trained and skilled professionals on its staff and its

unswerving standards of quality control, the company has distinguished itself as

one of the most respected names in the pharmaceutical industry.

E
skayef is growing more global and exporting its products and bulk pellets 20
countries across 5 continents i.e. Europe, Australia, South America, Africa and
Asia. Eskayef is also marketing eye care products of Allergan Inc. USA, the
global leader in this special area. As a part of business expansion, Eskayef has
already submitted more than 200 registration dossiers in 15 new countries and
another 8 countries are under registration pipeline. The company has been
providing contract and custom manufacturing facility for foreign pharmaceutical
companies. Currently it is contract manufacturing for two UK based and an
Australia based company. Eskayef also did contract manufacturing for one UAE
based and a German company.
2.4.9

Mediastar Ltd
Mediastar Limited is an affiliate, emerging electronic media and newspaper
concerns within TRANSCOM group. The company is currently consist of the
following media associates:
Prothom-Alo,

the

largest

circulated daily newspaper in the country, has established itself as a non-partisan,

independent and respected voice in the field of journalism in Bangladesh. In the
10 years since inception, it has been the vanguard for social revolution with the
slogan

(change self, change all). Consistently emphasizing the

possibility of a better Bangladesh, the newspaper has been instrumental in

numerous social initiatives. The Magsaysay Award in 2005 for the editor Matiur

Rahman bears witness to the esteem the international community accords

Prothom-Alo.

ABC Radio (Ayna Broadcasting Corporation Ltd)

has started its Commercial operation from 7th January, 2009. It's broadcasting at
FM 89.2 and serving 24 hour news and entertainment radio station and has
become a popular FM Radio Station of the country. In addition to the programs on
current Affairs and entertainment, ABC Radio is also airing latest news updates
every hour. A host of young and enthusiastic journalists, Radio Jockeys and
Technical Hands are working hard with strong commitment to air the latest news
and healthy entertainment. With 244 reporters and correspondents around the
country, ABC Radio also has correspondents in major cities of India, Pakistan, the
US, UK and Japan.
2.4.10 Tea & Rubber Farms

TRANSCOM group has been involved in tea and rubber producing and
distributing since its' birth. Till date the group consists of the following
companies:
M. Rahman Tea Company Limited
The Company basically responsible for producing Tea, Rubber plantation and
packing of garden fresh, premium Heritage Tea. Heritage contains Tea from the
groups 3 gardens exclusively for the connoisseur in 2 blends morning and
afternoon.
Monipur Tea Company Limited
The Company is basically an associate of TRANSCOM group responsible for Tea
plantations.
Heritage Argo Farms Ltd
Heritage Argo Farms Ltd is a joint venture of Monipur, Marina and M. Rahman

Tea Company Ltd. Its building own Brand name in Sylhet fish market by
intensive cultivation of fresh water fish especially Tilapia.
Marina Tea Company Limited
The company assist the same way with the previous ones for over 50 years of Tea
plantations and distribution.
2.4.11 Mediaworld Ltd
Mediaworld Limited is one of the associates of TRANSCOM group consist of a
renowned English newspaper THE DAILY STAR.

THE DAILY STAR is the leading and most quoted English newspaper in
Bangladesh. The company also publishes the Bengali SHAPTAHIK 2000 a
quality political and current affairs weekly and ANONDODHARA, the premier
film and entertainment fortnightly.
2.4.12 Reliance Insurance Ltd
RELIANCE INSURANCE LIMITED was the fourteenth in line to start general
insurance business in the private sector. It is basically one of the associates of
TRANSCOM group. The Company was incorporated on 20th March 1988 and
was allowed to commence business by virtue of the Certificate of Commencement
of Business issued by the Registrar of Joint Stock Companies on 22nd March
1988. The Company obtained Certificate of Registration issued by the Controller
of Insurance on 7th April 1988. It was subsequently listed in the stock Exchanges
of Bangladesh in 1995. Currently it's employing 325 persons as regular employee
around the country.

True to their vision to become the premier insurance organization and the insurer
of first choice in Bangladesh with a sound reputation for dependability,

professionalism and the highest standard of customer services, it is working in the

following areas:

Underwriting of Fire Insurance

Underwriting of Marine (Cargo & Hull) Insurance

Underwriting of Motor Insurance

Underwriting of Overseas Mediclaim & Holiday Insurance

Underwriting of Miscellaneous Insurance

Underwriting of Public Issue of Shares & Debentures

Investment of Shares & Debentures

2.5 Function
I.

To import Samsung Mobile in Bangladesh

II.

To distribute Samsung Mobile in Bangladesh

III.

To promote Samsung Mobile in Bangladesh

IV.

Corporately sell Samsung Mobile in Bangladesh

V.

Give better service to the Samsung customer.

2.6 Organizational diagram

2.7 Share of the company

Authorized share capital
1000000 ordinary shares of Tk. 100 each = 100000000
Issued, Subscribed and paid up capital
100000 shares @ Tk 100 each

= 10000000

Detail shareholding position of the company is as below:

Particulars

Face Value

Number of shares

Taka

Transcom Limited

100

99300

9930000

Mr. Latifur Rahman

100

100

10000

Mrs. Shahnaz Rahman

100

100

10000

Mr. Saifur Rahman

100

100

10000

Mr. Atiqur Rahman

100

100

10000

100

100

10000

Mrs. Simeen Hossain

100

100

10000

Ms. Shahrez Huq

100

100

10000

Total

100

100000

10000000

Mr.

Arshad

Waliur

Rahman

2.8 Financial information

4 years balance sheet at glance

ASSET
2013

2012

2011

2010

9058646

5750453

7478611

Noncurrent asset
Property,

Plant

and 6902890

Equipment
Pre operation expenses

346017

576696

807375

1038054

Total Noncurrent asset

7248907

9635342

6557828

8516665

Inventories

495582410

184696136 512179697 110031730

Advance income tax

8537259

4713359

2802102

1161480

Cash and Bank balance

59047149

11392087

-19550482

3313996

Account Receivable

539813481

285601036 361997873 186914162

Current Asset

Co-op, Price Protection,

KPI & incentive

-1837929

20984777

Advance, Deposit and 4945098

1162800

1257845

5000

37050000

-4534539

31969104

Pre payments
Intercompany

Current 3000000

accounts
Total current asset

1110925397

524615418 852314567 354380249

Total Assets

1118174304

534250760 858872395 362896914

EQUITY AND LIABILITIES

2013

2012

2011

2010

Share Capital

10000000

10000000

10000000

10000000

Retained Earnings(loss)

-95545120

-96910652

-33174244

Owners Equity

100718448
Loan

from

Sister 71566320

71624367

Concern
Total owners equity

-13978800

-15286285

-90718448

-23174244

1011459895

503229850 783903475 359789955

Current Liabilities
Short Term Borrowing
Trade

and

Other 80216544

30974679

149187178 5049133

Payment
Provision

for

Extra

-8296205

1913655

24796395

19318415

Margin
Provision for Co-op, 14008407
price protection & sales
incentive
Intercompany Current 8938448

5518321
74044

accounts
Bank overdraft

17529810

9740151

Total current liabilities

1132153104

549537045 949590843 386071158

Total

1118174304

534250760 858872395 362896914

Equity

and

Liabilities

Page 17 of 35

4 years income statement at glance

Particulars

2013

2012

Turnover

3612722944 2143288218 1642185648 518056649

Cost of Goods sold

2011

2010

3389430971 2010524860 1540600091 512105405

Gross Surplus

223291973

132763358

101585557

5951244

62800450

49555841

44251345

13044918

34030530

14454635

21089207

972148

Depreciation

3412066

2849492

2056520

1019851

Total

100243046

66859968

67397072

15036917

Operating Profit

123048927

65903390

34188485

-9085673

Finance Cost

-121683394

-62095594

-101732689

-24088571

Net Profit before Tax

1365533

3807796

-67544204

-33174244

Less: Operating
Expenses and Charges
Administrative and
Operating Expenses
Selling and
Distribution Expenses

Page 18 of 35

4 years cash flow statements at glance

Particulars
A. Cash Flow from
Operating Activity
Collection from customers
Cash paid to suppliers
and employees

Interest paid
Profit before Tax
Adjustment for
depreciation
Increase/Decrease in
Current Asset
Increase/Decrease in
Current Liability
Net cash used in operating
Activities
B. Cash Flows from
Investing Activities
Acquisition of asset
Pre Operating Expenses
Net cash used in investing
Activities

2013

2012

2011

344284393 220200732
3
0
327542944 205667051
0
4
167414493 145336806
-118503121 -108236552
-67544204 -33174244
2056520
1019851

48911372

37100254

-1256310

-6157685

-1256310

-6157685

52079879
6
56580688
3
-20479597

35106625
3
38607115
7
2850511

-328362
230679
-97683

-8498462
-1038054
-9536516

C. Cash Flows from

Financing Activities
Share Capital
Share money deposit
Net Cash used in
financing activities
D. Net
(Decrease)/Increase in
Cash and Cash
Equivalents (A+B+C)
E. Add: Cash and Cash
Equivalents at the
beginning of the year
F. Cash and Cash
Equivalents at the closing
of the year (D+E)

2010

10000000
10000000

47655062

30942569

-20577280

11392087

-19550482

3313996

59047149

11392087

-17263284

3313995

3313995

Page 19 of 35

2.9 SWOT analysis

SWOT analysis is a strategic planning method used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or in a business
venture. It involves specifying the objective of the business venture or project and
identifying the internal and external factors that are favorable and unfavorable to
achieve that objective.

Strengths: Characteristics of the business, or project team that give it an

advantage over others

Weaknesses: Characteristics that place the team at a disadvantage relative

to others

Opportunities: External chances to improve performance (e.g. make

greater profits) in the environment

Threats: External elements in the environment that could cause trouble for
the business or project

The result of the analysis is a matrix of positive and negative factors for management to
address:
Factors
Internal factors
External factors

Positive factors
Strengths
Opportunity

Negative factors
Weaknesses
Threats

Strengths:

Strong Brand image of the corporate level

Continuous focus on improvement of customer service

Long time experience of business

Various type of business

Weakness:

Inefficient work force

Delay in Decision making due to Bureaucracy (Chain of hierarchy)

Inexperienced top level management

Retain high profit margin

Opportunities:

Able to provide service as customer want

Able to reduce profit margin

Page 20 of

35

Threats:

High price of product

New competitor

Low profit in business

CHAPTER 3
Analysis and Findings

3.1 Financial Analysis

3.1.1

Sales
Sales Sale is the one and only earning sector of TML. Every year sales is

Taka in Core

increasing which make TML profit. In below I show 4 years sales history:

Sales

4E+09

3.5E+09
3E+09
2.5E+09
2E+09
1.5E+09
1E+09

500000000
0
Taka in Core
518056649

3612722944

2143288218

1642185648

Sales of TML was increased year by year. Height sale was in 2013.
Profit
Profit shows companys performance in the business. In below I show 4 years
profit earnings.

5000000
0
-5000000
- Profi
1000000
0t
1500000
0
2000000
0
2500000
0
3000000
0
3500000
0
4000000
0
4500000
0

Taka in Core

3.1.2

201
3
1365533

201
2
3807796

-50000000
-55000000
-60000000
-65000000
-70000000
201
201
1
0
-67544204
-33174244

Profit
In 2010 and 2011 profit of TML is in minus figure but in 2012 profit was increase
but in 2013 it was decrease again. Profit was not satisfied then sales.

3.1.3

Cash flow
Cash flow is the movement of money into or out of a business, project, or
financial product. It is usually measured during a specified, limited period of time.
Measurement of cash flow can be used for calculating other parameters that give
information on a company's value and situation. Cash flow can be used, for
example, for calculating parameters: it discloses cash movements over the period.

Cash Flow

Taka in Core

650000
00
550000
00
450000
00
350000
00
250000
00
150000
00
5000000
500000
0
1500000
0
-25000000
Cash
Flow

201
3
59047149

201
2
11392087

201
1
-17263284

201
0
3313995

In 2013, cash flow is in minus figure. But other year it is in plus figure.
3.1.4 Total Asset

The sum of current and long-term assets owned by a person, company, or

Taka in Core

other entity.
1.2E+09

Total Asset

1E+09
800000000
600000000
400000000
200000000
0
Total Asset
362896914

1118174304

534250760

858872395

Total asset is fluctuated in every year. Highest total asset is in 2013 amount is

1118174304 core.

3.1.5

Inventory
Inventory or stock refers to the goods and materials that a business holds for the
ultimate purpose of resale (or repair).

Taka in Core

Inventories
6000000
00
500000000
400000000
300000000
200000000
100000000
0
Inventories
110031730

495582410

184696136

512179697

Inventory was also fluctuated in every year. In 2011 and 2013 high amount of product
were stored rather than sale.

3.1.6 Account receivable

Accounts receivable is a legally enforceable claim for payment from a business to its
customer/clients for goods supplied and/or services rendered in execution of the

Taka in Core

customer's order.

Account Receivable
600000000
500000000
400000000
300000000
200000000
100000000
0

Account Receivable
186914162

539813481

285601036

361997873

Account receivable was also fluctuated in every year. Company can able to collect
some money in 2010 and 2012 but in 2011 and 2013, company can unable to
collect money so account receivable stay huge.

3.1.7

Retain Earning
Retained earnings refer to the portion of net income of a corporation that is
retained by the corporation rather than distributed to shareholders as dividends.
Similarly, if the corporation incurs a loss, then that loss reduces the corporation's
retained earnings balance. If the balance of the retained earnings account is
negative it may be called retained losses, accumulated losses or accumulated
deficit, or similar terminology. Retained earnings and losses are cumulative from
year to year.

Taka in Core

Retain Rarning
0
-20000000
-40000000
-60000000
-80000000
-1E+08
-1.2E+08
Retain
Rarning

201
3
-95545120

201
2
-96910652

201
1
-100718448

201
0
-33174244

Every years retain earning is in minus figure.

3.1.8

Fixed Asset
Fixed assets, also known as "tangible assets" [1] or property, plant, and
equipment (PP&E), is a term used in accounting for assets and property that
cannot easily be converted into cash. This can be compared with current
assets such as cash or bank accounts, which are described as liquid assets. In most
cases,

only

tangible

assets

are

referred

to

as

fixed.

IAS 16 (International Accounting Standard) defines Fixed Assets as assets whose

future economic benefit is probable to flow into the entity, whose cost can be
measured reliably.

Fixed Asset
10000000

Taka in Core

9000000
8000000
7000000
6000000
5000000
4000000
3000000
2000000
1000000
0
Fixed Asset
7478611

6902890

9058646

5750453

Fixed asset also fluctuated in every year. Company can able to hold huge fixed
asset in 2012.
3.2 Ratio analysis
Current Ratios
The Current Ratio is one of the best known measures of financial strength. It is
figured as shown below:
Current Ratio =

Total Current Assets

Total Current Liabilities

The main question this ratio addresses is: "Does your business have enough
current assets to meet the payment schedule of its current debts with a margin of
safety for possible losses in current assets, such as inventory shrinkage or
collectable accounts?" In Transcom:

Current Ratio
Ratio in Time

3.2.1

1
0.98
0.96
0.94
0.92
0.9
0.88
0.86
0.84

Current Ratio
0.917914332

0.981250145

0.954649778

0.8975598

In every year TML cant able to pay there all current liability by there current
asset.
3.2.2

Quick Ratios
The Quick Ratio is sometimes called the "acid-test" ratio and is one of the best
measures of liquidity. It is figured as shown below:
Quick Ratio =

Cash + Government Securities + Receivables

Total Current Liabilities

The Quick Ratio is a much more exacting measure than the Current Ratio. By
excluding inventories, it concentrates on the really liquid assets, with value that is
fairly certain. It helps answer the question: "If all sales revenues should disappear,
could my business meet its current obligations with the readily convertible `quick'
funds on hand?" In Transcom:
Years
Ration

2013
0.528957283

2012
0.540442406

2011
0.360626257

2010
0.492728229

After excluding inventory from current asset, company is highly unable to pay
there current liability by there current asset.

3.2.3 Working Capital

Working Capital is more a measure of cash flow than a ratio. The result of this
calculation must be a positive number. It is calculated as shown below:
Working Capital = Total Current Assets - Total Current Liabilities
Bankers look at Net Working Capital over time to determine a company's ability
to weather financial crises. Loans are often tied to minimum working capital
requirements.
Years

2013

2012

2011

2010

Ratio

-21227707

-24921627

-97276276

-31690909

In every year, companys working capital is in minus figure. Because total

liability is bigger than the total current asset.
3.2.4

Gross Margin Ratio

This ratio is the percentage of sales dollars left after subtracting the cost of goods
sold from net sales. It measures the percentage of sales dollars remaining (after
obtaining or manufacturing the goods sold) available to pay the overhead
expenses of the company.
Comparison of your business ratios to those of similar businesses will reveal the
relative strengths or weaknesses in your business. The Gross Margin Ratio is
calculated as follows:
Gross Margin Ratio =

Gross
Profit
Net
Sales

(Gross Profit = Net Sales - Cost of Goods Sold)

Years

2013

2012

2011

2010

Ration

6.180711%

6.194377%

6.185997%

1.14876%

In 2011, 2012, 2013 gross profit is satisfied. It is near about 6%.

3.2.5

Net Profit Margin Ratio

This ratio is the percentage of sales dollars left after subtracting the Cost of Goods
sold and all expenses, except income taxes. It provides a good opportunity to
compare your company's "return on sales" with the performance of other
companies in your industry. It is calculated before income tax because tax rates
and tax liabilities vary from company to company for a wide variety of reasons,
making comparisons after taxes much more difficult. The Net Profit Margin Ratio
is calculated as follows:
Net Profit Margin Ratio =

Net Profit Before

Tax
Net
Sales

Years

2013

2012

2011

2010

Ratio

0.037798%

0.177661%

-4.11307%

-6.4036%

Gross profit was satisfied in 2011, 2012, and 2013. But net profit was not
satisfied. In 2012 and 2013, profit was below then 1%, and in 2010 and 2011,
company was in loss.
3.2.6

Inventory Turnover Ratio

This ratio reveals how well inventory is being managed. It is important because
the more times inventory can be turned in a given operating cycle, the greater the
profit. The Inventory Turnover Ratio is calculated as follows:
Inventory Turnover Ratio =

Net
Sales
Average Inventory at Cost

Years

2013

2012

2011

2010

Ratio

7.28985305

11.6044020

3.20626853

4.7082477

Inventory turnover ratio is satisfied in 2012 and 2013. In 2010 and 2011, the ratio
was little bet short.

3.2.7

Return on Assets
This measures how efficiently profits are being generated from the assets
employed in the business when compared with the ratios of firms in a similar
business. A low ratio in comparison with industry averages indicates an inefficient
use of business assets. The Return on Assets Ratio is calculated as follows:
Net Profit Before

Return on Assets =

Tax
Total
Assets

Years

2013

2012

2011

2010

Ratio

0.122122%

0.712736%

-7.86429%

-9.14151%

In 2012 and 2013, return of asset was in below then 1% and in 2010 and 2011,
return on asset is in below then 0.
3.2.8

Return on Equity
Return on equity, commonly referred to as ROE, is another measurement of
management performance. ROE tells the investor how well a company has used
the capital from its shareholders to generate profits. Similar to the ROA ratio, a
higher ROE denotes a higher level of management performance.
Measures the income earned on the shareholder's investment in the business.
Net

Return on Equity=

Income
Equit
y

Years

2013

2012

2011

2010

Ratio

13.6553%

38.0779%

-675.442%

-331.742%

Return on equity was satisfied in 2012 and 2013. In 2010 and 2011, it was highly
dissatisfied. Because there were huge amount of minus % in those year.

3.2.9

Cash Turnover
Measures how effective a company is utilizing its cash.
Net

Cash Turnover =

Sales
Cas
h

Years

2013

2012

2011

2010

Ratio

61.1836982

188.1383295

-83.997195

156.3238607

In 2010, 2012 and 2013, cash turnover ratio was highly satisfied. But in 2011, it is
in minus figure.
3.2.10 Fixed Asset Turnover
The Fixed Asset Turnover ratio measures the effectiveness in generating Net Sales
revenue from investments in Net Property, Plant, and Equipment back into the
company evaluates only the investments.
Measures the activity of the assets and the ability of the business to generate sales
through the use of the assets.
Fixed Asset Turnover=

Net
Sales
Total
fixed
asset

Years

2013

2012

2011

2010

Ratio

498.3817483

222.4402847

250.4160902

60.8285812

Fixed asset ratio was highly satisfied in every year. In 2011, 2012 and 2013 the
sales were 250 times more than the fixed asset.
3.2.11 Total Asset Turnover
The Total Asset Turnover is similar to fixed asset turnover since both measures a
company's effectiveness in generating sales revenue from investments back into
the company. Total Asset Turnover evaluates the efficiency of managing all of the
company's assets.

Measures the capacity utilization and the quality of fixed assets.

Net
Sales
Total Asset Turnover=
Net Fixed Assets

Total Asset Turnover

Ratio in Time

4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Total Asset Turnover
1.427558706

3.230912149

4.011764472

1.912025183

Total asset turnover ratio is satisfied.

3.2.12 Total debt to Total Asset
Provides information about the company's ability to absorb asset reductions
arising from losses without jeopardizing the interest of creditors.
Total debt to Total Asset =

Total debt
Total Asse

Total debt to Total Asset

Ratio in Time

1.1
8
1.1
6
1.1
4
1.1
2
1.1
1.0
8
1.0
6
1.0
4
1.0
2
1
Total debt to Total Asset
1.063859

1.07650428

1.1626776

1.1056251

n every year Total debt to Total asset ratio is also satisfied. Company can able to
fulfill there all debt by there total asset.

3.3 Findings
I.
II.

Huge mistakes in document

Account receivable is very high

III.

Profit is very low

IV.

Misuse of manpower

V.

Inventory remain in huge amount

VI.

Monitor of work is not sufficient

VII.
VIII.
IX.
X.

Unwillingness in providing information

Planning is not changed for match with situation
No information about competitor
Poor decorated web site

CHAPTER 4
Recommendations and Conclusions

4.1 Recommendation

The company should offer more facilities to the customers

Need to develop marketing strategy

The document need to prepare properly and correctly

The business strategy need to changed as present business environment

Need to acquire proper information about competitor

Company need to increase profit as like as sales

Need to improve web site

4.2 Conclusions
In todays world academic education does not make a student professional to face the
current challenges within the outside world, therefore, internship is highly recommended
to gain idea, knowledge and experience. It gives real experience to the student to the
working world. It is really a good experience for me to take part in internship program in
Transcom Mobile Ltd. This field experience helped me in my career development. I will
try my best to fulfill the requirements of internship.

BIBLIOGRAPHY

1. http://www.transcombd.com/
2. Financial document collect directly