Financial Performance Analysis of Transcom Group

Internship Report

On

Financial Performance Analysis of Transcom Mobile Ltd

Sup ervis ed by

Md. Shamim Hossain Senior Lecturer

in Accounting Department of Business

Administration Manarat International

University

Prepared b y

A.K.M. Mahmadur RahmanID # 1129BBA01817

Manarat International University


Letter o f Tra ns mi tta l

Date: December 20, 2014

To

Md. Shamim Hossain

Senior Lecturer in Accounting

Department of Business Administration


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 it’s 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


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 RahmanID# 1129BBA01817Department of Business AdministrationManarat International University

Cer tificate o f t he s up erviso r

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 HossainSenior Lecturer in Accounting Department of Business Administration Manarat International University

ACKNO WLED GEM ENT

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.

i

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 people’s 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 company’s

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

ContentsParticulars Page

Chapter 1 Introduction 1

Background of the study 1

Rational of the study 1

Objective of the study 2

Methodology of the study 2

Scope of the study 3

Limitations of the study 3

Chapter 2 About Transcom 4

Mission of Transcom 4

Nature of Business 4

Organizational overview 4Function 14Organizational diagram 15Share of the company 15Financial information 16SWOT Analysis 20

Chapter 3 Financial Analysis 22

Ratio Analysis 26

Findings 33

Chapter 4 Recommendation 34

Conclusion 35

iii

CHAPTER 1

Introduction

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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 today’s 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.

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.

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. To understand the corporate environment

II. 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.

of 35

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 company’s several type of document.

Unfriendliness of providing company’s 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 world’s 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.

Cables 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 Anti-

Insect 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

E

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

one of the most respected names in the pharmaceutical industry.

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:

Pro tho m-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 Rad i o (Ayna Broadcasting Corporation Ltd)

has started it’s 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

group’s 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 D A I L Y S TAR 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

Mr. Arshad Waliur

Rahman100 100 10000

Mrs. Simeen Hossain 100 100 10000

Ms. Shahrez Huq 100 100 10000

Total 100 100000 10000000

2.8 Financial information

4 years balance sheet at glance

ASSET

2013 2012 2011 2010

Noncurrent asset

Property, Plant and

Equipment

6902890 9058646 5750453 7478611

Pre operation expenses 346017 576696 807375 1038054

Total Noncurrent asset 7248907 9635342 6557828 8516665

Current Asset

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

Co-op, Price Protection,

KPI & incentive

-1837929 20984777

Advance, Deposit and

Pre payments

4945098 1162800 1257845 5000

Intercompany Current

accounts

3000000 37050000 -4534539 31969104

Total current asset 1110925397 524615418 852314567 354380249

Total Assets 1118174304 534250760 858872395 362896914

EQUITY AND LIABILITIES

2013 2012 2011 2010

Owners Equity

Share Capital 10000000 10000000 10000000 10000000

Retained Earnings(loss) -95545120 -96910652 - -33174244

100718448

Loan from Sister

Concern

71566320 71624367

Total owners equity -13978800 -15286285 -90718448 -23174244

Current Liabilities

Short Term Borrowing 1011459895 503229850 783903475 359789955

Trade and Other

Payment

80216544 30974679 149187178 5049133

Provision for Extra

Margin

-8296205 1913655

Provision for Co-op, price protection & sales incentive

14008407 5518321

Intercompany Current

accounts

8938448 74044

Bank overdraft 17529810 9740151 24796395 19318415

Total current liabilities 1132153104 549537045 949590843 386071158

Total Equity and

Liabilities

1118174304 534250760 858872395 362896914

Page 17 of 35

4 years income statement at glance

Particulars 2013 2012 2011 2010

Turnover 3612722944 2143288218 1642185648 518056649

Cost of Goods sold -

3389430971

-

2010524860

-

1540600091

-

512105405

Gross Surplus 223291973 132763358 101585557 5951244

Less: Operating

Expenses and Charges

Administrative and

Operating Expenses

62800450 49555841 44251345 13044918

Selling and

Distribution Expenses

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

Page 18 of 35

4 years cash flow statements at glanceParticulars 2013 2012 2011 2010

A. Cash Flow fromOperating ActivityCollection from customers 344284393

3220200732

0Cash paid to suppliersand employees

-327542944

0

-205667051

4167414493 145336806

Interest paid -118503121 -108236552Profit before Tax -67544204 -33174244Adjustment fordepreciation

2056520 1019851

Increase/Decrease inCurrent Asset

-52079879

6

-35106625

3Increase/Decrease inCurrent Liability

565806883

386071157

Net cash used in operatingActivities

48911372 37100254 -20479597 2850511

B. Cash Flows fromInvesting ActivitiesAcquisition of asset -1256310 -6157685 -328362 -8498462Pre Operating Expenses 230679 -1038054Net cash used in investingActivities

-1256310 -6157685 -97683 -9536516

C. Cash Flows fromFinancing ActivitiesShare Capital 10000000Share money depositNet Cash used infinancing activities

10000000

D. Net(Decrease)/Increase in Cash and Cash Equivalents (A+B+C)

47655062 30942569 -20577280 3313995

E. Add: Cash and CashEquivalents at the beginning of the year

11392087 -19550482 3313996

F. Cash and CashEquivalents at the closing of the year (D+E)

59047149 11392087 -17263284 3313995

Page 19 of 35

of

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 Positive factors Negative factorsInternal factors Strengths WeaknessesExternal factors Opportunity 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

of

Threats:

High price of product

New competitor

Low profit in business

CHAPTER 3

Analysis and Findings

2013 2012 2011 2010Profit 1365533 3807796 -67544204 -33174244

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3.1 Financial Analysis

3.1.1 Sales

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

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

4E+093.5E+09

3E+092.5E+09

2E+091.5E+09

1E+09500000000

0

Sales

Taka in Core 3612722944 2143288218 1642185648 518056649

Sales of TML was increased year by year. Height sale was in 2013.

3.1.2 Profit

Profit shows company’s performance in the business. In below I show 4 years

profit earnings.

50000000

-5000000-10000000-15000000-20000000-25000000-30000000-35000000-40000000-45000000-50000000-55000000-60000000-65000000-70000000

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.

2013 2012 2011 2010Cash Flow 59047149 11392087 -17263284 3313995

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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.

650000005500000045000000350000002500000015000000

5000000-5000000

-15000000-25000000

Cash Flow

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

other entity.

1.2E+09Total Asset

1E+09

800000000

600000000

400000000

200000000

0

Total Asset 1118174304 534250760 858872395 362896914

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

1118174304 core.

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3.1.5 InventoryInventory or stock refers to the goods and materials that a business holds for the

ultimate purpose of resale (or repair).

600000000

Inventories

500000000

400000000

300000000

200000000

100000000

0

Inventories 495582410 184696136 512179697 110031730

Inventory was also fluctuated in every year. In 2011 and 2013 high amount of product

were stored rather than sale.

3.1.6 Account receivableAccounts 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

customer's order.

600000000

500000000

400000000

300000000

200000000

100000000

0

Account Receivable

Account Receivable 539813481 285601036 361997873 186914162

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.

2013 2012 2011 2010Retain Rarning -95545120 -96910652 -100718448 -33174244

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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.

Retain Rarning0

-20000000

-40000000

-60000000

-80000000

-1E+08

-1.2E+08

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.

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10000000

9000000

8000000

7000000

6000000

5000000

4000000

3000000

2000000

1000000

0

Fixed Asset

Fixed Asset 6902890 9058646 5750453 7478611

Fixed asset also fluctuated in every year. Company can able to hold huge fixed

asset in 2012.

3.2 Ratio analysis

3.2.1 Current Ratios

The Current Ratio is one of the best known measures of financial strength. It is

figured as shown below:Total Current AssetsCurrent Ratio = Total Current LiabilitiesThe 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:

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1

0.98

0.96

0.94

0.92

0.9

0.88

0.86

0.84

Current Ratio

Current Ratio 0.981250145 0.954649778 0.8975598 0.917914332

In every year TML can’t 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:Cash + Government Securities + ReceivablesQuick Ratio = Total Current LiabilitiesThe 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 2013 2012 2011 2010

Ration 0.528957283 0.540442406 0.360626257 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, company’s 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 ProfitNet 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

TaxNet SalesYears 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:Net SalesInventory Turnover Ratio = 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:

Return on Assets =Net Profit Before

TaxTotal AssetsYears 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.

Return on Equity=Net

IncomeEquityYears 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.

Cash Turnover =Net

SalesCashYears 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

SalesTotal fixed assetYears 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.

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Measures the capacity utilization and the quality of fixed assets.Net SalesTotal Asset Turnover= Net Fixed Assets

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4

3.5

3

2.5

2

1.5

1

0.5

0

Total Asset Turnover

Total Asset Turnover 3.230912149 4.011764472 1.912025183 1.427558706

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 debtTotal Asset

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Total debt to Total Asset1.18

1.16

1.14

1.12

1.1

1.08

1.06

1.04

1.02

1

Total debt to Total Asset 1.07650428 1.1626776 1.1056251 1.063859I

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. Huge mistakes in document

II. 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. Unwillingness in providing information

VIII. Planning is not changed for match with situation

IX. No information about competitor

X. 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 today’s 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.

BIBLIOGRAPHY1. http://www.transcombd.com/2. Financial document collect directly

Financial Performance Analysis of Transcom Group

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