Internship Report

on

Financial Activities of Al Amin Motors: An Evaluation

Supervised by

Mohammed Shahed Rajon

Assistant Professor
Department of Business Administration
Bangladesh Islami University (BIU)

Submitted by

Md. Maksudur Rahman

ID No. BBARM 25141062
BBA Program,
25th Section (B)
Major : Finance
Department of Business Administration

Bangladesh Islami University

Date of Submission:
 Student's Declaration

Date:

I do hereby declare that this Internship report on titled Financial Activities of Al Amin
Motors has been written by me under the supervision of Mohammed Shahed Rajon,
Assistant Professor, Department of Business Administration, Bangladesh Islami University
(BIU) in fulfillment of the requirement for the award of Bachelor of Business Administration
(BBA).

I am also declaring that this report was not submitted for any degree or title recognition
before.

_____________________

Md. Maksudur Rahman

ID No. BBARM 25141062
BBA Program,
25th Section (B)
Major in Finance
Department of Business Administration
 Official Certification
Date:

This is to certify that Md. Maksudur Rahman, a student of Bangladesh Islami University
(BIU), BBA 25th Batch, Major in Finance has completed a Internship program on Financial
Activities of Al Amin Motors. under my supervision. The report is submitted for the partial
fulfillment of the Bachelor of Business Administration Degree.

I do hereby acknowledge his work and wish all the prosperity and success: The report is
accepted in terms of quality and form.

Mohammed Shahed Rajon Chairman

Assistant Professor & internship supervisor Internship Committee,
Department of Business Administration Department of Business Administration
Bangladesh Islami University (BIU) Bangladesh Islami University (BIU)
 Acknowledgement
All the praise to Allah Subahanahu Wa Taala and Durud to our Prophet Mohammed (Sm).
My next thanks goes to my beloved parents without them none of my effort is valuable.

I would like provide special thanks Md. Shahed Rajon, Assistant Professor, Department of
Business Administration, Bangladesh Islami University (BIU) for his scholarly, supervision,
instruction, valuable suggestion, encouragement inspiration, untiring help, unprecedented
patience, sympathy during the whole periods of assignment works and critical review on
Financial Activities of Al Amin Motors I shall be remaining ever grateful to my most respected
teacher.

In this connection, I would like to thank Abul Kashem, General Manager Al Amin Motors.
help to do my Internship report.

I am grateful to my beloved Parents, Younger Brother, friends and well-wishers for their
inspiration that lead me to go ahead.

Finally, I thank all the persons who have directly or indirectly contributed in preparing this
report.

This Report is not free from limitation. There might still be some minor mistakes including
typing errors despite utmost care, we apologize for these.

(Md. Maksudur Rahman)

i
 Executive Summary
The internship report is prepared as requirement of BBA program of Department of Business
Administration, Bangladesh Islami University. This report focuses Financial Activities of Al
Amin Motors. This report will give an overall idea about the Financial Activities of Al
Amin Motors.

The main objectives of this study is to focus on Financial Activities of Al Amin Motors.
Along with the overall practice and management of Al Amin Motors. In order to make the
report, I have been taken decision to collect various primary and secondary data. Data has
been collected by the interviewing the responsible officer & other related documents,
different forms of statistical have been used to make the study meaningful and realistic.

The whole report is divided into five parts. In the 1st Chapter I have included Introduction of
the Study, Objectives of the study, Scope of the study, Methodology of the study, Time
Schedule of the Study and Limitation of the study. In the 2nd Chapter I have included Profile
of Al Amin Motors., Company Profile, Our Mission, Our Vision, Our Values, Organization,
Organgra, Our Products: . In the 3rd Chapter I have included Conceptual Framework about
Financial Activities, 4th Chapter I have included, Analysis & Findings, and 5th chapter I
included Recommendations and conclusion.

Major Findings of the study are: For better understanding of the financial condition of Al
Amin Motors, various ratios have been computed. All the ratios support good financial
condition of Al Amin Motors Al Amin Motors Import is gradually increase, in 2015, 9.8%, in
2016, 18.5%.That is satisfactory. Al Amin Motors, is gradually capital increase 2016 than 2015.
In ratio analysis present that maximum time the(%) change rate is good in year 2016 then other
two. Liquidity ratios (Current ratio, Quick ratio and Working capital) indicate Al Amin
Motors has very strong financial ground to expand its business in future. Activity ratio
(Inventory turnover ratio, Total asset turnover ratio, Days sales outstanding and Average
payment period) illuminates that the total asset is managing well by Al Amin Motors.
Inventory turnover ratio and Total asset turnover ratio reflects the good management of the
inventory, high production capacity and high efficiency in using total asset. Average payment
period is short (82 days) considering the payables but Days sales outstanding is too long (170
days). They need to concentrate to minimize Days sales outstanding days.
ii
Some Recommendations Included here: Receiving materials when needed:
Suppliers usually deliver materials on suppliers schedule, rather than when the materials will
be used for production. This increases the inventory cost. That can be reduced by having the
material delivered on companys schedule.

Quick payment for lower prices:

For many companies, cash flow is more important than profits, particularly in the short-term.
During periods of financial stress, companies simply cannot afford to keep excess inventory
or allow the payments of accounts receivable to be delayed. Al Amin Motors can inform
their suppliers that they are willing to consider cash purchases in return for low prices. If their
operation is financially capable of holding the inventory until it is needed, the use of cash is
justified. Eliminate unnecessary product features: Custom products cost more to
manufacture than mass-produced products, and any non-standard feature requires an
additional step in the production process, increasing the expense. By examining customers
motives for purchasing products: Do they buy Al Amin Motors products because of their low
cost, high quality, unique look, or some other reason? By determining what is important to
their customers, they can selectively attack elements which are not as important to reduce
cost. Reduce Waste: Product engineers typically design products without considering the
production consequences, particularly how non-standard purchase units of size, volume, or
weight must be modified to create the final product. Production methods are usually
established to minimize the costs of the highest component of production, either labor or
materials, at the time the method are established. If, for example, the cost of the raw material
is low, the volume of excess material or scrap may not be considered to be important
relative to the labor cost. Over time, however, prices for materials and labor may shift. This
alters the ratio between the two elements and their related expense, so that the cost of scrap
material becomes excessive.

iii
 Table of Contents

SL. Description Page No

No
Title Page
Cover Page
Students Declaration
Official Certification
Acknowledgment i
Executive Summary ii-iii
Table of Contents
Chapter-01 Introduction 01-04
1.1 Introduction of the Study 2
1.2 Objectives of the Study 3
1.3 Scope of the Study 3
1.4 Methodology of the Study 3
1.5 Time Schedule of the Study 3-4
1.6 Limitations of Study 5
Chapter-02 Profile of Al Amin Motors 06-10
2.1 Company Profile 7
2.2 Mission of Al Amin Motors 7
2.3 Vision Al Amin Motors 8
2.4 Values Al Amin Motors 8
2.5 Organization Organgram of Al Amin Motors 9
2.6 Products of Al Amin Motors 10-11
Chapter-03 Conceptual Framework 12-15

3.1.1 Performance Appraisal 13

3.1.2 Income Statement 13
3.1.3 Balance sheet 13
3.1.4 Cash flow statement 14
3.1.5 Statement of Owners Equity 14
3.2 Ratio Analysis 14
 Chapter-04 Analysis and Findings 16-34

4.1 Financial Performance of Al Amin Motors

4.1.1 Balance Sheet
4.1.2 Income Statement
4.2
4.3 Ratio Analysis of Al Amin Motors
4.3.1 Current Ratio 20
4.3.2 Quick Ratio 21
4.3.3 Net Working Capital Ratio 22-23
4.3.4 Debt to Total Asset Ratio 23-24
4.3.5 Fixed Assets Turnover 25-26
4.3.6 Total Assets Turnover 26-27
4.3 Profit & Loss Appropriation Account 27-28
4.4 Export Import Status of Al Amin Motors 29
4.5 Import of Al Amin Motors 30
4.6 Materials Import 31
4.7 Country Wise Export Statues of Al Amin Motors 32
Learning of the internship 33
4.9 Findings of the Study 33
Chapter- 05 Recommendations and Conclusion 34
5.1 Recommendations 35-36
5.2 Conclusion 37
References 38