CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The BBA program of Uttara University is designed to focus on theoretical and
Professional development of students who are open to take up business as a profession as
well as service as a career. Internship reports are a requirement for the completion of the
BBA program. This Internship reports is of knowledge and learning become perfect
when it is associated with theory and practice. For any business student only curriculum
activity is not enough for handling the real business situation, therefore, it is a
requirement after the completion of BBA to involve with a business organization to
prepare a thesis report. So it is an opportunity for the students to know about the field of
business through the Internship program.

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.

1.2 Objectives of the Study

1.2.1 Broad objectives
The broad objectives of the study to know the Financial Performance of Jamuna Knitting
and Dyeing
1.2.2 The specific objectives of the study are given as:
To know Ratio analysis of Jamuna Knitting & Dyeing
To find out the problems related with Financial Activities of Jamuna Knitting &
Dyeing
To analyze the activities of Jamuna Knitting & Dyeing.
To recommended few solutions to overcome those problems.

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.

1.3.1 Brief Profile of the Company

To maintain its competitiveness in todays globalized modern market, Jamuna introduced
the best technology along with machinery and expertise in Bangladesh. Jamuna
developed and expanded its enterprises of multi-dimension for diversifying its product
range. In course of 34 years of operation Jamuna Group expanded into a giant dynasty of
24 large scale enterprises.
From textile to real estate Jamuna Group has diverse business interests. Over the thirty
four years of operation, the Group has ventured into electrical, engineering, chemical,
leather, garments and textiles- including spinning, knitting and dyeing, cosmetics,
toiletries, beverages, real estate, housing, print and electronic media sectors.

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.

Nation building activities:

We participate in our nation building activities; we have a big contribution towards the
national exchequer in the form of taxes and by generating employment opportunities for
huge number of unemployed work forces. Jamuna Group is one of the biggest
employers.

Mission & Vision

Vision:
We view business as a means to the material and social well being of the investors,
employees at large leading to accretion of wealth through financial and moral gains as a
part of the process of development of civilization.
Mission:
Our mission is to produce and provide quality services and un innovative products for
people, maintain ethical slandered in business operation, also ensuring benefit to the
stakeholders and peoples of Bangladesh.

3
Objective:
to accomplish our vision and Mission we are constantly parsing for besetment of socio-
economic life of our people

1.3.2 Description of Section

Jamuna Complex
Aromatic Cosmetics Ltd.
Jamuna Knitting & Dyeing Ltd.
Jamuna Denims Garments Ltd.
Jamuna Denims Weaving Ltd.
Jamuna Denims Ltd.
Optimo Jeans Ltd.

I worked in this company (Jamuna Knitting & Dyeing Ltd.) Jorun, Konabari,
Gazipur as an accounts Department.

1.4 Major difficulties face for accomplishing internship:

Time Limitation: To complete the study, time was limited. It was really very
short time to know details about a giant company like Jamuna Knitting & Dyeing
Accommodation Problem: Since the respective personnel of Jamuna Knitting &
Dyeing are very busy, sometimes I could not communicate with them properly
where I required and they also failed to help me.
Fears to disclosure: There were some company policies for not to disclose the
confidential information to general people which could be very much useful for
my study.
Lack of experience: There may be some lacking, as I am not experienced enough
to carry out such study though I have tried my level best.

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.

2.2 Conceptual Framework

A subjective measure of how well a firm can use assets from its primary mode of
business and generate revenues. This term is also used as a general measure of a firm's
overall financial health over a given period of time, and can be used to compare similar
firms across the same industry or to compare industries or sectors in aggregation. In
another word Financial Performance is measuring the results of a firm's policies and
operations in monetary terms. These results are reflected in the firm's return on
investment, return on assets, value added, etc.
There are many different ways to measure financial performance, but all measures
should be taken in aggregation. Line items such as revenue from operations, operating
income or cash flow from operations can be used, as well as total unit sales.
Furthermore, the analyst or investor may wish to look deeper into financial statements
and seek out margin growth rates or any declining debt.

2.2.1 Concepts of Finance

Team of leading expert in quantities finance bring together cutting edge research and
solid knowledge of best practice in risk management though a wide range of consulting
and trading service. A branch of economics concerned with resource allocation as well as
resource management ,acquisition and investment .simply finance deals with matters

5
related to money and markets. To raise money through the issuance and sale of debt
and/or equity.

2.2.2Concepts of Financial Activities

The financial activity measures and reports the status of financial resources and the
changes in the resources. The FRS communicates this information primarily to external
users. This type of reporting is called non-discretionary because the organization has few or
no choice in the information it provides. Much of this information consists of traditional
financial statements, tax returns, and other legal documents.

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.

2.2.3 Purpose of Financial Statements

The objective of financial statements is to provide information about the financial
position, performance and change in financial position of an enterprise that is useful to a
wide range of user in making economic decision. Financial statements should be
understandable. Relevant, reliable and comparable. Reported assets, liabilities, equity,
income and expenses are directly related to an organizations

2.3 Study framework

At first Topic selection, than Data collection Analysis & Consultation with the
supervisor, Data Observation & Separation, Primary data collection, Secondary data
collection, Report Preparing, Data input to computer, Setting Processing & Preparing the
report and last make the book & Shown to supervisor for correction them submitted
finally.

6
 CHAPTER THREE
DATA COLLECTION AND PROCESSING

3.1 Data Description

The methodology of the report includes direct observation, oral communication with the
employees of all departments of Jamuna Group studying files, circulars etc and as well as
practical experience. This report is basically qualitative in nature.

3.2 Source of Data collection

In order to make the report more meaningful and presentable, two sources of data and
information have been used widely.

SOURCE OF DATA

PRIMARY SECONDARY
DATA DATA

Figure 1: Sources of data

Primary Source
i) Official record and direct observing.
ii) Personal observation
iii) Relevant file study provided by the officers concerned

Secondary Source
i) Company website.
ii) Practical working experience.
iii) Annual report of Jamuna Knitting & Dyeing
iv) Study of different files and documents

3.3 Data Processing Methods

Collected information have then processed & compiled with the aid of MS Word, Excel.
Necessary tables have been prepared on the basis of collected data and various statistical
techniques have been applied to analyses on the basis of classified information. Detail
explanation and analysis have also been incorporated in the report.

7
 CHAPTER FOUR
RESULTS AND DISCUSSIONS

4.1 Income Statement

Income statement is often referred to as Profit or loss statement. It reports on a
company's results of operations over a period of time, usually a fiscal time period.
The income statement provides information on the revenue and expenses incurred
by the company in a fiscal time period. It is essential to calculate the Net Income
or Loss of the company. It is also used to calculate profitability ratios which show
how much profit a company is making.

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

Sales Revenue Analysis of 2011

60%

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%

Fig: Sales Revenue Analysis of 2011

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%

Source: Annual Report of Jamuna knitting & dyeing - 2012

Sales Revenue Analysis of 2012

70%
60%
50%
Axis Title

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%

Fig: Sales Revenue Analysis of 2012

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%

Source: Annual Report of Jamuna knitting & dyeing - 2013

Sales Revenue Analysis of 2013

70%
60%
50%
Axis Title

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%

Fig: Sales Revenue Analysis of 2013

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%

Source: Annual Report of Jamuna knitting & dyeing -2014

Sales Revenue Analysis of 2014

70%
60%
50%
Axis Title

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%

Fig: Sales Revenue Analysis of 2014

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

Sales Revenue Analysis of 2015

80%
Axis Title

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%

Fig: Sales Revenue Analysis of 2015

Interpretation:
The graph show in 2015 Cost of Materials 61%, Salary, Wages and Benefits 15%,
Depreciation 3%, Electricity and Fuel 1%, Other Expenses 12%, Income tax 2% and Profit after
tax is 6%.

4.2 Balance Sheet

Balance Sheet is a quantitative summary of a company's financial condition at a specific
point in time, including assets, liabilities and net worth. The first part of a balance sheet
shows all the productive assets a company owns, and the second part shows all the
financing methods (such as liabilities and shareholders' equity) also called statement of
condition. A balance sheet is often described as a "snapshot" of the company's financial
condition on a given date. Of the four basic financial statements, the balance sheet is the
only statement which applies to a single point in time, instead of a period of time.
The balance sheet shows all available assets, liabilities and owners equity at a particular
time. Usually, it is calculated at the end of a fiscal time period. It gives an overview on
how the company is performing and how much the business is worth. It is also used to
calculate liquidity ratios and solvency ratio which indicates how quickly a company can
pay up its liabilities.

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

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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

Figure: Current Ratio

Interpretation of Current Ratio:
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.

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:

2011 2012 2013 2014 2015

Particulars (Billion) (Billion) (Billion) (Billion) (Billion)
Current Assets 2000 2760.25 3234.56 4546.95 5134.26
Inventory 235.5 346.7 485.6 649.2 785.3
Current Liability 525.64 724.64 865.46 1032.64 1398.54

Current ratio 3.36 3.33 3.18 3.77 3.11

Table: Quick Ratio

Acid test / Quick Ratio

4
3.5
3
2.5
2
1.5
1
0.5
0
2011 2012 2013 2014 2015
Acid test / Quick Ratio 3.36 3.33 3.18 3.77 3.11
Year

Figure: Quick Ratio

Interpretation of Quick Ratio:
Quick ratio although was poor in 2012 (3.33) and 2013 (3.18) compare with 2011 (3.36),
but improved remarkably in 2014 (3.77). Although, it was lost its stability in 2015 (3.11).
But, it can be said that The Jamuna Group can pay its obligations without having to
liquidate its inventory.

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

Figure: Receivable Turnover

Interpretation of Receivable Turnover:

The graph show is Receivable Turnover in 2011- 0.85%, 2012-0.83%, 2013.0.69%,
2014-0.73% and 2015-0.74.

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:

Particulars 2011 2012 2013 2014 2015

Cost of Sales 395500000 432900000 485000000 549400000 601100000
(Billion)
Total Inventory 4350000 35300000 600000 28800000 29700000
Average Inventory 18475000 19825000 17950000 14700000 29250000
Inventory
Turnover 21.407(T) 21.836(T) 27.019(T) 37.374(T) 20.550(T)

Table Inventory Turnover

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

Interpretation of Inventory Turnover

The graph show is Inventory Turnover in 2011- 21.407%, 2012-21.836%, 2013-
27.019%, 2014-37.374% and 2015-20.55%.

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

Interpretation of Profit Margin Ratio:

Profit margin on Sales trend was 71.69% in 2011 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 and Dyeing is stable between 67% and 71%.

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= Net Sales/average Assets

The Asset Turn-Over 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
Total Assets 2500.5 3250.45 3827.16 5167.35 5774.96
Average Assets 2241.475 2875.475 3538.805 4497.255 5471.155
Asset Turn Over 0.24 0.22 0.16 0.16 0.15
Table: Asset Turn Over

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

Figure: Asset Turn Over in time

Interpretation of Asset Turn Over:

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 2012, 2013 & 2014 respectively. Therefore, sales
of Jamuna Knitting and Dyeing were not increased for each number of currencies of
assets.

20
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:

Particulars 2011 2012 2013 2014 2015

Net Income 379.98 420.72 370.78 512.37 564.28
Total Assets 2500.5 3250.45 3827.16 5167.35 5774.96
Average Assets 2241.475 2875.475 3538.805 4497.255 5471.155
Return On Assets 0.169 0.146 0.105 0.114 0.103

Table: Return on Assets

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

Interpretation of Returns on Asset:

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 2013 it was decreased
remarkably to 0.105

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

Interpretation of Return on Owners Equity:

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.

e. Debt to total asset ratio: It measures the percentage of total assets provided by
creditors.

Debt to total asset ratio = Total debts / Total Asset

Particulars 2011 2012 2013 2014 2015
Total Debt 1300.5 1750.45 1927.16 2667.35 2974.96
Total Assets 2500.5 3250.45 3827.16 5167.35 5774.96
Debt to total asset ratio 0.52 0.54 0.50 0.52 0.52
Table: Debt to total asset ratio

Interpretation of Debt to Total Asset Ratio:

Debt to Total Assets ratio is almost same during previous five years of Jamuna Knitting
and Dyeing Ltd. Therefore, the long term investors and creditors hold same level of risk
during this period.

22
 f. Earnings per Share (EPS):
It measures net income earned on each number of common stock.

EPS = Net Income / Weighted average common shares Outstanding

Particulars 2011 2012 2013 2014 2015
Net Income 3799800000 4207200000 3707800000 5123700000 5642800000
No. of shares 64403389 51307317 50791780 53933684 56997979
Earnings Per
Share 59 82 73 95 99
Table: Earnings per Share

Interpretation of Earnings per Shares (EPS):

Earnings per share was increasing from 2011 (59) to 2015 (99). Therefore, it is better for
the company to increase its image nationally as well as internationally.
b. Price-Earnings (P-E) ratio: It measures the ratio of the market price per share to
earnings per share.
P-E = Market price per share stock / Earnings per share
Particulars 2011 2012 2013 2014 2015
Market Price Per Share 1255 1580 1420 2245 2285
Earnings Per Share 59 82 73 95 99
P/E Ratio 21.27 19.27 19.45 23.63 23.08
Table: Price-Earnings (PE) Ratio

Interpretation of Price-Earnings (PE) Ratio:

Price Earnings (PE) Ratio was 21.27 in 2011. It was decline in 2012 (19.27) and 2013
(19.45). But, in 2014 it was increased to 23.63 which were greater than previous three
years. As higher PE refers to greater risk, the Jamuna Knitting and Dyeing Ltd. contains
greater risk than its previous years.

23
Summary of Financial Analysis of Jamuna Knitting and Dyeing Ltd.

Ratios Particulars 2011 2012 2013 2014 2015

Current Ratio 3.80 3.81 3.74 4.40 3.67

Acid Test 3.36 3.33 3.18 3.77 3.11

Liquidity Ratio
Receivable 0.85(T) 0.825(T) 0.69(T) 0.73(T) 0.74(T)
Turnover
Inventory 21.407(T) 21.836(T) 27.019(T) 37.374(T) 20.550(T)
Turnover
Profit Margin 71.69% 67.47% 66.06% 71.53% 67.36%

Asset Turn 0.24 0.22 0.16 0.16 0.15

Over
Return On 0.169 0.146 0.105 0.114 0.103
Asset(ROA)

Profitability Return On 0.362 0.312 0.218 0.233 0.213

Owners
Equity(ROE)

Solvency Debt to Total 0.52 0.54 0.50 0.52 0.52

Asset Ratio
Market Earning Per 59 82 73 95 99
Shares(EPS)
Price-to- 21.27 19.27 19.45 23.63 23.08
Earning(PE)
Ratio

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

Sales Growth Rate from Historical Record:

{(837.76/530.03)^1/4}-1
= 12.12560315%
Particulars Growth Rate 2014 2015

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

Tk. in Billion FY2011 FY2012 FY2013 FY2014 FY2015

Total Debts 1300.5 1750.45 1927.16 2667.35 2974.96

Shareholders Equity 1200 1500 1900 2500 2800

Advances 377.58 298.34 332.74 418.01 373.36

Total Revenue 530.03 623.55 561.29 716.26 837.76

Total Assets 2500.5 3250.45 3827.16 5167.35 5774.96

Credit Sales 100.03 114.55 112.29 134.26 141.76

Net Receivables 124.25 153.48 169.85 197.26 186.24

Interest Income 310.87 304.60 324.28 359.80 394.91

Interest Expenses 211.09 192.74 184.83 203.90 234.37

Net Interest Income 99.78 111.86 139.45 155.89 160.54

Non-Interest Income 57.40 76.12 71.20 74.35 57.69

Total Operating Income 446.25 528.71 466.58 602.26 708.58

Staff Expenses 56.89 64.48 69.07 81.23 79.33

Overhead Expenses 22.53 27.97 31.67 36.02 38.91

Total Operating Expenses 79.42 92.45 100.74 117.25 118.24

Operating Profit 77.76 95.53 109.91 112.99 100.00

Total Provisions 46.70 58.72 66.86 68.93 54.59

Net Profit 379.98 420.72 370.78 512.37 564.28

(Source: Tally9Software of Jamuna Knitting & Dyeing.)

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 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)

Particulars 2011 2012 2013 2014 2015

Net Sales 530.03 623.55 561.29 716.26 837.76
Cost of Sales 39.55 43.29 48.5 54.94 60.11
Direct Expenses 29.13 31.03 35.53 40.94 45.23
Direct Labor 13.02 12.47 12.99 15.29 14.68
Direct Materials 16.11 18.56 22.54 25.65 30.55
Indirect Expenses: 10.42 12.26 12.97 14 14.88
Indirect Labor 3.02 3.14 4.83 4.78 4.86
Indirect Materials 3.21 3.86 3.23 4.23 4.85
Production Overhead 4.19 5.26 4.91 4.99 5.17
Gross Profit 490.48 580.26 512.79 661.32 777.65
Operating Expense 10.33 12.23 10.55 13.07 16.32
General & Administrative Exp. 7.33 7.59 6.54 7.62 9.85
Selling & Distribution Exp. 3.35 4.35 4.15 6.05 6.47
Financial Charge 33.39 39.65 35.37 45.18 52.88
Bank Charges 5.43 5.48 6.56 8.65 11.84
Bank Interest 7.83 7.29 7.15 9.54 12.97
Export/Import Doc. Charge 0.68 0.84 0.21 0.85 0.49
Exchange Loss 0.54 - 0.86 0.09 -
Foreign Bank Charges 19.21 26.94 21.19 26.86 27.81
Operating Income 446.25 528.71 466.58 602.26 708.58
Other Income 0.93 1.06 0.56 1.43 1.79
Duty Drawback 0.14 0.08 0.09 0.1 0.23
Foreign Exchange Gain 0.27 0.3 0.11 0.35 0.54
Sale of Office Equipments 0.07 0.1 0.12 0.09
Miscellaneous Income 0.52 0.61 0.26 0.86 0.93
Unexpected Loss 0.05 0.27 0.32 0.13
Due To Fire 0.16 0.18 0.13
Due To Labor Conflict 0.05 0.11 0.14
Net Income Before W.P.P & W.F 447.65 529.61 466.58 603.56 710.48
Allocation For W.P.P & W.F 3.71 4.35 3.03 5.82 5.32
Net Income Before Tax 443.93 525.23 462.75 598.47 704.64
Provision For Income Tax 63.64 75.31 66.56 86.07 101.27
Prov. For Deferred Income Tax 28.84 25.65 38.85
Net Profit After Tax 380.13 420.97 370.89 512.52 564.52
Minority Interest 0.17 0.41 0.24 0.18 0.86
Net Income For The Year 379.98 420.72 370.78 512.37 564.28

Table-: Consolidated Income Statement

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Year-Wise Sales Revenue

Particulars 2011(%) 2012(%) 2013(%) 2014 (%) 2015(%)

Cost of materials 56.9 59.4 64.7 68.9 75.3
Salary, Wages & Benefits 17.1 18.3 17.9 17.8 18.2
Depreciation 2.7 2.9 3.0 3.2 3.3
Electricity & Fuel 0.9 1.0 1.1 1.2 1.3
Other Expenses 14.2 12.4 13.5 15.7 14.5
Income Tax 1.4 1.6 2.2 2.4 2.6
Profit after Tax 3.6 4.4 6.7 7.5 7.9

Table1: Analysis of Sales Revenue

33