Internship Report On Financial Performan

Internship Report
On
Financial Performance through Ratio Analysis of

Rahimafrooz CIC-Agro Limited
Prepared For
M. Mokarrom Hossain
Professor
Department of Business Administration
Faculty of Business & Economics
Daffodil International University
Prepared By
Md. Tanvir Ahmed
ID: 142-11-3872
BBA-Major in Accounting
Date of Submission: 26th July 2018
©Daffodil International University

PART – ONE
PREFATORY PART

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Preface
I a student of BBA, I have completed my internship report in Rahimafrooz CIC Agro Ltd. on Financial
Performance through Ratio Analysis. During my internship program, I have tried my best to collect the
information related to the topic and prepared the report within a short time. I regret my mistake in this
report.
This report is a requirement of the internship program for my BBA degree. I express my sincere
gratitude to my internship supervisor Professor M. Mokarrom Hossain, Department of Business
Administration, Faculty of Business & Economics, Daffodil International University. Who give me
necessary information and excellent guidance to prepare this internship report. His Valuable advice has
helped me a lot in writing this report. I am immensely thankful to him for the support. He has given me
inspiration during my BBA and the internship period. I tried to follow his guideline.

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Acknowledgement
As a student of BBA program, Internship is one of the most important partial requirement of the total
course BBA program. In this regard I would like to thank all the faculties of Daffodil International
University who helps me to finish my courses.
This is a synopsis of my recent study on “Financial Performance through Ratio Analysis” as a part of
the internship program. At the beginning I want to remember Almighty Allah for giving me the
opportunity, strength to do this work smoothly & blessings for our success.
I started this internship report and finally it has been completed. However, the special thanks go to my
helpful supervisor, Professor M. Mokarrom Hossain, Department of Business Administration, Faculty
of Business & Economics, Daffodil International University, for helping me to prepare the report. The
supervision and support that he gave truly help the progression and smoothness of the internship
program. The co-operation is much indeed appreciated.
I’m grateful to Md. Niaz Mohammad Sufian Finance Manager of Rahimafrooz-CIC Agro Limited
who had created the opportunity to get the practical knowledge. I would like to express my sincere
thanks to Md. Harun-or-Rashid (Finance Officer), Md.Golam Mostafa (Sr. Officer-HR & Admin)
and officers of other departments of Rahimafrooz-CIC Agro Limited who were extremely helpful in
providing me necessary documents, statement, reports, manuals etc. They always inspire for the hard
work and sincerity.
Last but not least I am also owed to each employees for their support and assistance who concerned
inside and outside of Rahimafrooz-CIC Agro Ltd in carrying out this report.

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Letter of Transmittal
July 26, 2018
M. Mokarrom Hossain
Professor
Daffodil International University, Dhaka-1207
Subject: Submission of Internship Report on “Financial Performance through Ratio Analysis’’
Dear Sir,
I take pleasure in submitting the report on “Financial Performance through Ratio Analysis of
Rahimafrooz-CIC Agro Ltd” as a requirement of the BBA program of the Department Business
Administration for your consideration. I have completed the report in due time and met all the
proposed objectives. A part from the academic knowledge gained, this internship program and
preparation of report has given me the opportunity to understand the topic related knowledge.
I have tried my best to make this report a comprehensive and informative one. I hope you will
appreciate my effort and find the report up to your expectation.
It has to be mentioned further that without your recommendation and cooperation it would not be
possible for me to complete this report. I shall be gratified to answer any sort of queries you think
necessary regarding this report.
Yours Sincerely,
………………….
Tanvir Ahmed
ID: 142-11-3872
BBA- Major in Accounting

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Letter of Acceptance
This is certifying that Tanvir Ahmed, ID- 142-11-3872, BBA (Accounting), is a regular student of
Department of Business Administration, Faculty of Business and Economics, Daffodil International
University. He has successfully completed her internship program at “Rahimafrooz-CIC Agro Ltd”
and has prepared this internship under my direct supervision. His assigned internship topic is on
“Financial Performance through Ratio Analysis of Rahimafrooz-CIC Agro Ltd”. I think that the
report is dignitary of fulfilling the partial requirements of academic program. I also state that the study
has been prepared for academic purposes only and this paper may not be used in actual market
situation.
I have gone through the report and found it a well written. He has completed the report by himself. I
wish him every success in life.
M. Mokarrom Hossain
Professor

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Declaration
I hereby proclaim that this internship report sanction “Financial Performance through Ration Analysis
of Rahimafrooz-CIC Agro Limited’’ is prepared by me after the completion of 6 months (180 days) of
internship with Rahimafrooz-CIC Agro Limited.
I also declare that this paper is my original work and it has not been submitted anywhere for any
purpose. The report is prepared for entirely academic purpose which is a partial requirement for the
completion of Bachelor of Business Administration.
………………………
Tanvir Ahmed
ID: 142-11-3872
BBA- Major in Accounting

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Executive Summary
Rahimafrooz CIC Agro Limited (RCAL) is a reflection of Rahimafrooz vision to be a leader of the best
quality produces from ‘seed to shelf’. The company was established in June 2011 as joint venture with
CIC Agro Businesses (Private) Limited, a leading company in Sri Lanka. RCAL aspires to provide
farmers with complete agricultural solutions by emphasizing sufficiency through modernization of
agriculture production, with particular attention on increased production, processing and value
addition. The company is focused on modernizing & bringing efficiency to Plant Nutrition,
Mechanization & Tissue Culture through continuous Research & development.
To many things I learn from CIC-Agro limited. How to prepare the Sales report, Collection Report,
Payment voucher, Issuing purchase order, Petty cash statement, Checking bills & Maintence
Warehouse expenses, Checking ledger amount, and learn to how to take a pressure and solve the
pressure work within a corporate environment.
Especially I know the How to create a LC form that means Letter of credit.

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Table of Content
S.L. Particulars Page No.
Part-One
Prefatory Part
Preface III
Acknowledgement IV
Letter of Transmittal V
Letter of Acceptance VI
Declaration VII
Executive Summary VIII
Part-Two
Report Body
Chapter- 1 : Introductory Part
1.1 Introduction 03
1.2 Background of the study 04
1.3 Objectives of the study 05
1.4 Scope of the study 06
1.5 Methodology 07
1.6 Limitations of the study 08
Chapter- 2 : Profile of Rahimafrooz CIC-Agro Ltd

2.1 Rahimafrooz (Bangladesh) Ltd 10
2.2 Corporate Information 11
2.3-4 Company Vision & Mission Statement 12
2.5 Business Domains 13-14
2.6 Core Value 15
2.7 The Board of Directors 16
2.8 Organization Structure 16
2.9 Number of Employees 17
2.10 SWOT Analysis 18
2.11 Products & Services 19-22

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Chapter- 3 :Performance Evaluation through Ratio Analysis
3.1 24-25
Financial Statement
3.2 Need for Financial Statement Analysis 25
3.3 Ratio Analysis 26-27
3.4 Liquidity Analysis 27-30
3.5 Profitability Analysis 31-36
3.6 Asset Management Analysis 37
3.7 Debt Management Ratio Analysis 38
Chapter- 4 : Findings, Recommendations and Conclusion
4.1. Major Findings, 40.

4.2. Recommendations, 41.
4.3. Conclusion, 42.
Part- Three
Appended Part
A: Bibliography 44
B: References 45

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PART – TWO
REPORT BODY
1
CHAPTER – 1
Introductory Part
2
1.1 INTRODUCTION
Only the academic training isn't sufficient to deal with the genuine professional workplace in this
way it is an open door for the understudies to think about the field of business through the
internship program. As internship program is an ideal mix of the hypothetical and reasonable
information. A three to half year's internship program with a specific association and a report
doled out by the scholastic manager is obligatory for each understudy of Bachelor of Business
Administration of Daffodil International University. I got the chance to do my internship on
"Rahimafrooz-CIC Agro Limited". I began my internship in Rahimafrooz-CIC Agro Limited on
15th January 2018 and finished on 15th June 2018. Throughout my internship dated M.
Mokarrom Hossain, Professor of Daffodil International University was my academic supervisor.
A provide details regarding a specific point is a required piece of the internship program. I was
approved to make a write about the “Financial Performance through Ration Analysis of
Rahimafrooz-CIC Agro Limited’’. In this entire report I attempted my level best to create a
quality report.
3
1.2 BACKGROUND OF THE STUDY
After completion of 123 credit of BBA program request a cover handy affair. Presently multi
day's Internship is getting appreciated on the grounds that understudies are getting presented with
this present reality. Internship program is a necessary three credit course, which gives us the
chance to increase down to earth learning about the corporate world. This report is managed and
submitted to. The report is finished with the help of Rahimafrooz CIC-Agro Ltd. uncommonly
the modern Machinery, Agora advertising and deals office. The exploration was about the Agro
advertising in Bangladesh in light of Rahimafrooz CIC-Agro Ltd.
Now the world is very much competitive. So everybody has to be expert in his/her field both
practically and theoretically. As Daffodil International University aims to provide the students a
complete knowledge of both theoretical and practical part of the real corporate world where they
will enter after the completion of their BBA program, Internship course and its report is a
significant aspect in the direction of accomplishing the goal. It is a systematic process for
gathering, recording and analyzing of data about the topic that a student gets to learn from the
program, moreover this program will also help students to make a meaningful connection
between the theoretical knowledge with the practical world.
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1.3 OBJECTIVES OF, THE STUDY
Objectives of the study are as follows:
1. To evaluate financial performance through ratio analysis on Rahimafrooz-CIC Agro
Limited.
2. To assess the liquidity of the company.
3. To compute the profitability of the company
4. To appraise asset management efficiency of the company
5. To make some recommendations based on findings
5
1.4 SCOPE OF THE STUDY
Rahimafrooz, is one, of the largest corporate sectors in Bangladesh. It has more than ten business
domain in our country and Rahimafrooz CIC Agro Ltd is one of them. The organization was
begun its adventure in June 2011 as a joint venture with a Srilankan Leading Agro organization.
The Company provide farmers with complete agricultural solutions by emphasizing sufficiency
through modernization of agriculture production, with particular attention on increased
production, processing and value addition in accordance with engaging competent human
resources and providing opportunities to enhance their skills.
The main intention of the study is to analyze the financial statements .This report will give an
Overall idea about the financial situation of CIC Agro Ltd for the year 2016 and 2017 and
Correlate them to get a clear picture of the company’s current position as well as future
Opportunities and threats of the company. The report details about my job responsibilities
6
1.5 METHODOLOGY
The information which is represented in the report is collected internally and externally. Internal
and external both sections represents secondary data. I have started my internship program from
15th January 2018.Within 6 months; a lot of events have been occurred from where it helps to
prepare the report. Sometime orally I have collected information which is not available. And
these can be gathered only personal experience.
This report contains both Qualitative and Quantitative scrutinizes. In quantitative part I have
examinations the money related explanation with the assistance of proportion.
To make the report more significant and satisfactory, two wellsprings of information and data
were utilized generally. Both essential and optional information sources were utilized to set up
this report.
1.5-1 Sources of Data:

▪ Primary Sources:
• Practical Desk Work
• Given Task from related department
• Observation
• Face to face conversation
▪ Secondary Sources:
• Audit Reports
• different sales & collection report
• Official website
• Officials files and documents
• Monthly Financial report
• Payment Vouchers
• Different journal, books & publications
▪ Target Population: Officers, Clients and suppliers of Rahimafrooz CIC Agro Ltd.
▪ Sampling Size:
▪ Sampling Method: In this research random sampling technique was used to collect data.
1.5-2Data Collection Method:

• Practical Desk Work
• Face to face conversation with officers, clients and suppliers.
• Given Task from related department
• Observation
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1.6 LIMITATIONS
To prepare a report on the topic like this in a short duration is not easy task. From the beginning
to end, the study has been conducted with the intention of making it as a complete and truthful
one.
The key limitations contain:
• The data used in this research for local market are fully based on primary which were
collected from different suppliers’ which sometimes impossible to get.
• Barriers in revealing real information from a portion of the provider and the end client.
• Internet was the main hotspot for worldwide market request determining, applicable
information is constrained for the investigation.
8
CHAPTER – 2
,
Profile of Rahimafrooz CIC-Agro Ltd.
9
2-1 Rahimafrooz (Bangladesh) Ltd
A man of strict religious qualities, yet an adherent to dynamic dynamism, and a visionary – Late
A C Abdur Rahim overcame numerous challenges and obstacles to become one of the most
accomplished entrepreneurs of this country
Rahimafrooz is one of the respected and reputed business communities in Bangladesh. In the
course of the most recent 50 years it has changed itself from a little exchanging organization into
a main enhanced business firm in Bangladesh. Rahimafrooz comprises of nine SBUs that cover
car secondary selling, (for example, Batteries, Tires, and Lubricants), control and vitality and
retail chain 'Public square' which is the primary retail chain in Bangladesh, propelled in 2001. It
creates and advertises a scope of battery items – car, cruiser, and apparatus batteries, Industrial
(stationary, profound cycle, footing, VRLA) batteries, IPS and UPS batteries, and rectifiers. The
Group's portfolio likewise incorporates universal tire brands Dunlop and Kenda, and its own
image RZ Tire. Rahimafrooz is the selective franchisee of the full scope of grease mark Castrol
in Bangladesh. The Company conveys to Bangladesh driving gas and diesel generator brands –
Pramac and additionally Mitsubishi. It additionally showcases home and mechanical lighting
items from General Electric USA (GE) and electrical adornments from Hager France. The Group
works a non-benefit association Rural Services Foundation (RSF) through which the sun based
home frameworks achieve the clients in the provincial territories of Bangladesh.
Rahimafrooz is a private limited liability company with the Board of Directors comprising six
members. The total manpower is 8,000 and has a reported turnover of US$ 300 million with an
overall PBT 8 percent of NSV. They now focus on diversifying into agro businesses in order to
have a diverse investment portfolio while fulfilling the market need.
Rahimafrooz, CIC-Agro Limited, (RCAL) is a new operational business of agro products

segments of Rahimafrooz Bangladesh Limited. Rahimafrooz CIC Agro Limited (RCAL) is a
joint venture private enterprise of Rahimafrooz Bangladesh Limited and CIC Agribusiness
Private Limited, Srilanka aimed at production and marketing agricultural products of economic
importance. Their wider objective is to export food, seed and seed cultures to countries where
there is high demand. RCAL presently is developing facilities for long term production of
10
grasses, sedges varieties, banana and Banana tubers in in-vitro form for marketing of cultures or
the end product both in country consumption and export with its head office at 705-6 West
Nakhalpara, Tejgaon, Dhaka 1207 hereinafter referred to as the “RCAL” or the 2nd party (which
expression wherever the context so permits, shall include its successors in-interest,
administrators and legal assigns).
2-2 Corporate Information:-
Rahimafrooz CIC-Agro Limited (RCAL) was established in 2011 as an Emerging Joint

Venture company in Agro-sector of Bangladesh. Their partner is Chemical Industries
Corporation (CIC) Srilanka, a leading Agricultural Organization in national agriculture
development. It’s the reflection of Rahimafrooz vision to engage the agriculture sector to bring
the changes in business practices and to contribute in national economy through sustainable
solutions to the agricultural sector. Their strategic business units-Agro-Machineries, Seed &
Fertilizer provide highly effective products to fulfill the wide gap in Bangladesh market. They
aim to provide this nation with a better future with complete solution to the farmer through
inspiring innovations and keen focus on research and development.
They have the aptitude and gear to furnish their customers with an entire scope of
administrations important to augment their provincial speculation. Their group has dependably
been at the front line to explain the request of cultivators and also the request of definite clients
in the objective market.
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2-3 Vision Statement:-
❖ To be a leader of the best quality produce from ‘Seed to Shelf’.
❖ To be the pioneer of Diversified & Best Quality Product Varieties.
❖ To commit customer delight through operational excellence, innovation & continual

improvement.
❖ Best after sales service provider in Agribusiness
2-4 Mission Statement:-
RCAL want to bring ethical and excellence in business practices in agro sector
contributing significantly to GDP and ensuring trust from grower to consumer.
12
2-5 Business Domains:-
This area depicts Rahimafrooz Group's organizations as indicated by the four wide sections that
its organizations work in.
2-5.1 Storage Power

Rahimafrooz is a 65 years of age business gathering of Bangladesh and is the main maker of
Lead Acid Batteries in the nation. Its Storage Power Products ranges from 5AH to 220AH, for
application in Automotive, Motorcycles, Industrial, Telecom, Invertors, Electric Vehicle, Solar,
and so on. Rahimafrooz is a standard exporter to 66 nations, including Japan, Singapore,
Australia, Chile, Russia, Saudi Arabia, Middle East and India with batteries made to work from -
40°C to +50°C.
COMPANIES IN THIS PARTITION
• Rahimafrooz, Accumulators, Ltd.

• Rahimafrooz, Batteries, Ltd.
• Rahimafrooz Globatt, Ltd.
2-5.2 Automotive, and Electronics

Rahimafrooz Group showcases and conveys different automotive reseller's exchange items, for
example, car batteries, tires and oil and in addition Electronics running from home apparatuses,
control reinforcement frameworks, lighting items, and Electrical embellishments.
• Rahimafrooz -Distribution Ltd.

• Rahimafrooz -Gastech Ltd.
2-5.3 Energy^
Rahimafrooz Group has a significant presence in the energy sector of Bangladesh and offers a
wide range of renewable and conventional energy solutions.
• Rahimafrooz^ Renewable Energy Ltd.

• Rahimafrooz^ Energy^ Services Ltd.
13
2-5.4 Retail^
Rahimafrooz Group presented the main retail chain of superstores in Bangladesh and has
assumed a noteworthy part in rethinking ordinary shopping.
• Rahimafrooz Superstores Ltd.
2-5.5 Agro Products

Rahimafrooz Group presented the Agro enterprises alongside joint vanture of Srilankan CIC
Agro industry which was establishment June 2011.
• Rahimafrooz ^CIC-Agro Ltd.
2-5.6 Other Ventures^
• Core Knowledge
• Metro Net Bangladesh
• RZ Power
• Rahimafrooz Customer Care
14
2-6 Core Values of the Company:-
❖ Integrity : We are honest, transparent and ethical in all our dealings.
❖ Passion to Win : We deliver what we promise by bringing the best in all of us.
❖ Respect to individual : We win the hearts and minds of all people we interact with.
❖ Teamwork : We believe in trust, truth and team effort.
❖ Making a Better World: We compassionately contribute to the community we live in.
❖ R&D : We strive to learn and innovate new paradigms.
❖ Every Taka Counts : We treat every taka spent as our own.
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2-7 The Board of Directors of Rahimafrooz Bangladesh Limited
❖ Director: Niaz Rahim

❖ Director: Munawar Misbah Moni
❖ Director: Mudassir Murtaza Moin
❖ Chairman: Afroz Rahim
❖ Managing Director: Feroz Rahim
❖ Group Deputy Managing Director: Mohamed Ismail
2-8 Organization Structure:-
❖ Three business segments- Agro-Machineries, Fertilizer and Seed operates countrywide

regional divisions contribute to the local development of our business and help to develop
market potential. For financial flexible our divisions are grouped into the following four
regions: South-East, North-South & North-East.
❖ Clients of Rahimafrooz CIC Agro Limited incorporate a different scope of private and
open associations engaged with the advancement and selection of seeds, pesticides,
composts, trim assortments, agro-apparatuses and other farming data sources. Their
prime customers incorporate rancher gatherings, rural wholesalers, colleges, inquire
about enterprises and other government associations.
❖ Their group of experienced staff, demonstrated frameworks, driving edge innovation and
hardware reflects to your individual requirements.
16
2-9 Number of Employees:-
Rahimafrooz CIC Agro has been persistently making new fields of work each year by method
for extension of its business spaces and exercises. The business joins the "One-Roof One-
Family" idea since its origin and look going to make a work culture that energizes and spurs
staff. This organization will probably make it the best work environment in by making an
stimulating, pleasant, solid, mindful and gainful condition for all levels of staff. RCAL has in
excess of 110 employees gives due significance to the prosperity of its workers by offering
enthralling compensation and other related rewards. The company takes both permanent and
contractual employees whose working with satisfactory during the last six years.
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2-10 SWOT Analysis:-
SWOT analysis means to justify a company’s strength, weakness, opportunity & threats which is
very crucial for every company. SWOT analysis of Rahimafrooz CIC Agro Limited is as
follows:
S = Strength
W = Weakness
O = Opportunity
T = Threats
STRENGTH
WEAKNESS
- Company Goodwill
-New entry in agribusiness
- Strong Financial position
-Lack of experience in lease financing
- Identified customer desire
-Quick decision making problem
- Expert sales team
-Manpower setup problem
- Modern technology
-Well distribution network problem
- Strong Raw materials
SWOT
OPPORTUNITY THREAT
- Rapid mechanization of agro -Global economic recession
- ROI is substantial -Dependent on foreign supply
- Variability of product -Higher purchase model
- Add value to Attract Consumer. -Change the govt. policy
- Advertising and Target customer -Risk factor
- Govt. support for agribusiness -Credit based business
-High competition
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2-10 Product and Services:
✓ Seeds
✓ Fertilizers
✓ Machineries
✓ Commodity
2-10.1 Seeds:
Category Packet Size Variety Product name

Hybrid 1 kg Green Star Coriander
OP 500 g TARA 40 Radish
OP 500 g LAL TARA Red Amaranth
OP 20 g TARA Hatikani Bean
OP 50 g TARA Hatikani
OP 100 g TARA Hatikani
OP 500 g TARA Onamika Okra
Foundation 10 kg BRRI Dhan 28 Paddy Seed
2 kg
Certified 10 kg BRRI Dhan 28
2 kg
Foundation 10 kg BRRI Dhan 29
2 kg
19
Certified 10 kg BRRI Dhan 29
2 kg
Foundation 10 kg BRRI Dhan 50
2kg
Hybrid 1 kg Sonar Bangla 6 Paddy Seed
Hybrid 1 kg Malik 1
HYB 100 g Green Sweaty Watermelon
HYB 100 g TARA Dragon Watermelon
HYB 100 g Black King Watermelon
HYB 100 g Black Honey Watermelon
HYB 05 g TARA Lanka Super Chili
HYB 05 g TARA Lanka Chili
HYB 20 g TARA Sonali Okra
HYB 05 g TARA Lovely Tomato
HYB 05 g TARA Red Ball Tomato
HYB 10 g TARA Early Super Cabbage
HYB 10 g Sada TARA Cauliflower
HYB 10 g TARA Labiba Brinjal
Hybrid 10 g TARA Shaktiman Bitter Gourd
Hybrid 10 g TARA Basonti Ridge Gourd
Hybrid 10 g TARA Ruposhi Sponge Gourd
Hybrid 10 g TARA Diamond Pumpkin
Hybrid 20 g TARA Komol Okra
Hybrid 10 g TARA Evergreen Cucumber
Chinese vetch 10 g TARA Black Black Bean
Hybrid 500 g TARA Corn Corn
Hybrid-PSO 12 g TARA Squash Squash
Hybrid-PSO 15 g TARA Pumpkin Pumpkin
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2-10.2 Fertilizers:
Pack Size Specification Product Name

1 Kg Zinc Sulphate Monohydrate- Zinc 36% Tara Mono Zinc
2 Kg Zinc SulphateHeptahydrate-Zinc 21% Tara Hepa Zinc
17g,50g,100g Chelated Zinc- Zinc 10% Tara Chela Zinc
1 KG Magnesium Sulphate- Magnesium 8.5% Tara Mag
& Sulphur-10.5%
5 Kg, 10 Kg Gypsum- Calcium-25% & Sulphur-17% Tara Gypsum
1 Kg Sulphur-90% Tara Sulphur -90%
1 Kg Boric Acid- Boron 17% Tara Boron
100g,250g,500g Boric Acid- Boron 25% Solubor Boron
500g, 1 Kg Boric Acid- Boron 16% Tara Fertibor

50ml,100ml 4-Chlorophenoxy Acetic Acid Shakti(4CPA)
21
2-10.3 Machineries:
DEUTZ_FAHR TRACTOR
Product Model
Preet 9049 90HP 4WD
Preet 6049 60HP 2WD
Preet 955 55HP 4WD
Preet 6549 65HP 4WD
Deutz Allis 616H

Rotavator Rotary CV-01
TARA DIESEL ENGINE
Product Model
AGRO LUX-55
R 175 F (5 HP)
R 175A (6 HP)
R 185 A (8.5 HP)
EM R 185 NL (8.5 HP)
T 195 (12 HP)
T 195 NL (12 HP)
T 1100 NL (16 HP)
22
CHAPTER – 3
Performance Evaluation through Ratio Analysis
23
3-1 ^FINANCIAL STATEMENTS:-
The Accounting process or financial reporting system, which generates financial information for
external users, encompasses five principal financial statements:
➢ Statement of Financial Position
➢ Income Statement
➢ Statement^ of Cash flows
➢ Statement of Changes in Equity
Financial statements provide information about the assets, liabilities, Income & cash flows, and
stockholders’ equity of the firm. The effects of transactions and other events are recorded in the
appropriate financial statements.
• The income statement reports incomes, costs and gains & losses.
• The balance sheet shows assets, liabilities, &stockholders' value; the announcement of
investors' value reports capital exchange with proprietors.
• The statement of cash flows includes operating investing, and financial inflows and
outflows. Numerous exchanges are reflected in excess of one proclamation with the goal
that the whole set is required to assess the firm.
• Footnotes give data about the bookkeeping strategy, presumptions, and assessments
utilized by administration to build up the information announced in the financial
statements. They are intended to enable clients to enhance evaluations of the sums,
timing, and vulnerability of the assessments revealed in the money related explanations.
Revelation related to such areas as:
• Fixed assets
• Income taxes
• Inventories
• Pension, Gratuity and other post advantage norms
• Debt
• Interest rates, maturity & predetermined terms
• Lawsuits
• Marketable securities and other investments
• Hedging and other hazard administration exercises
24
• Business sections
• Significant clients, deals to related gatherings and fare deals.
3-2 ^NEED FOR FINANCIAL STATEMENT ANALYSIS:-

The money related revealing framework isn't great. Examination of these announcements helps
both the organization and its speculators to comprehend the general money related state of the
organization.
Here a few reasons of the requirement for financial statements investigation are given
underneath:
➢ In a perfect world, the client of financial statements could concentrate just on the main
concerns of money related announcing: net salary and investors' value.
➢ The monetary occasions and accounting sections don't compare correctly, they separate
over the measurements of timing, acknowledgment and estimation.
➢ Economic occasions and accounting acknowledgment of those occasions regularly
happen at various circumstances.
➢ Long - lived resources are composed down, more often than not, in the Fiscal Period of
administration's decision.
➢ Generally GAAP allow monetary occasions that do get bookkeeping acknowledgment to
be perceived in various courses by various money related articulation get ready.
➢ Financial reports frequently contain supplementary information that, in spite of the fact
that excluded in the announcements themselves, help the money related articulation
clients to translate the announcements or to modify measures of corporate execution to
make them more similar.
➢ Information from outside the financial reporting procedure can be utilized to make money
related information more valuable.
25
3-3 ^RATIO ANALYSIS:-
Financial ratios are utilized to look at the hazard and return of various firms so as to help value
speculators and loan bosses settle on smart venture and credit choices. Ratios can likewise give a
profile of a firm, its monetary qualities and focused techniques and its one of a kind working,
financial and speculation trademark. By doing proportion examination it is conceivable to
comprehend an organization's past, present and future plausible financial circumstance.
Four ratio classes measure the risk and return relations. These classifications are:
3-3.1 Liquidity Analysis: Measures the capacity to meet the close term commitments. Capacity
^
to change over into money. By investigating the proportions said cry liquidity examination has
been improved the situation Rahimafrooz CIC-Agro Ltd.
• Current Ratio
• Quick Ratio
3-3.2 Profitability Analysis: Measures the income of the firm in respect to its incomes and
contributed capital. The accompanying ratios are utilized to dissect the productivity;
• Gross margin
• Operating margin
• Net Profit Margin
• ROA’
• ROE’
3-3.3 Asset Management Analysis: Assesses income and output created by the firm’s assets.
The accompanying ratios incorporate into the movement investigation:
• Inventory Turnover Ratio

• Total asset Turnover Ratio
• Fixed asset Turnover Ratio
• Average Sales Collection Period
• Average Payment Period
26
3-3.4 Debt Management Ratio: Debt Management Ratios crack to extent the firm's
^
procedure of financial leverage and ability to escape financial misery in the extensive run. These
ratios are also recognized as Long-Term Solvency Ratios.
• Debt’ to Asset Ratio

• Times’ Interest Earned
3-4 Liquidity Analysis:-

^
Short-term lenders and creditors must assess the ability of a firm to meet its current obligations.
The capacity relies upon the money assets accessible as of the accounting report date and the
money to be created through the working cycle of the firm. The shorter the cycle, the more
efficient the firm’s operations and cash management is. The longer cycles may be indicative of
cash short fall sand increased financing costs. Liquidity Analyses is made to understand the
liquidity position of a company. Liquidity position of accompany means the ability of a company
to pay its short term obligation, by using its short term assets. Three ratios are used to conduct
the liquidity analysis. They are the current ratio, quick ratio and cash ratio. Among these three
ratios Current and Quick ratio are considered in here.
3-4.1 Current Ratio

Current ratio uses all the current assets of the company. Greater current ratio is worthy for a
company but this may be as a result of upper inventory, which is immoral for the company as the
company might fail to sell its goods and it may also direct assets are secured up as current assets
which do not produce anything.
Current Ratio of Rahimafrooz CIC-Agro Ltd designed for the year 2016 as well as 2017
are:
Year 2016 2017

Current Ratio 0.419 0.569
Current Ratio= Current Assets ÷ Current Liabilities
2016 = 276,815,848 ÷ 659,914,628 = 0.419
2017 = 389,271,449 ÷ 682,986,167 = 0.569
27
The comparisons of the data for 2016 as well as 2017 are exposed in the diagram below:
0.6
0.5
0.569
0.4
0.419
0.3
Assets
0.2
0.1
2016
2017
Figure: Current Ratio

In 2016 current ratio of CIC-Agro was 0.419 which means CIC-Agro had taka 0.419 to
reimbursement 1 taka of its current debt. This was a relatively depraved situation for the
company. In 2017 current ratio was 0.569 which means CIC-Agro had taka 0.585 of current
assets against taka 1 of current liability.
In 2016 the situation of the company was improved than 2017. It also directs in 2016 CIC-Agro
current assets valor have secured up a while. But inclusive we can say that in 2016 the current
ratio situation was well than 2017.
28
3-4.2 ^Quick Ratio
A more Protective measure of liquidity analysis is the quick ratio. The assets included in this
ratio are called quick asset because they can be more quickly converted to cash. Inventory and
prepaid expenses are hors from this ratio. If this ratio is greatly inferior to the current ratio, then
it is reflected that firm is facing liquidity problem. It shows that the company may have upper
inventory that greater prepaid expenses and the firm is unable to sell.
Quick Ratio of Rahimafrooz CIC-Agro Ltd. ^for the year 2016 as well as 2017 are:
Year 2016 2017
Quick Ratio 0.288 0.424
^ Quick ratio = Total Current assets – Inventories- Prepaid Expenses ÷ Current liabilities
2016 = 276,815,848 - 81,215,810 - 54, 85,536 ÷ 659,914,628
= 0.288
2017 = 389,271,449 – 93,107,137 – 65, 78,668 ÷ 682,986,167
= 0.424
29
The comparisons of the data for 2016 as well as 2017 are showing in the diagram below:
0.45
0.4
0.35
0.424
0.3
0.25 0.288 Liquidity Analysis
0.2
0.15
0.1
0.05
0
2016 2017
Figure: 3.2 Quick Ratio

In 2016 the quick ratio was lower to the current ratio of 2016 nevertheless in 2017 the quick ratio
was uniform much lower than the current ratio of 2017. It specified that the company had further
cash and accounts receivable and securities obtainable in 2017 and it also specifies that inventory
of the company was greater than 2016.
30
3-5 ^Profitability Analysis:-
Profitability analyses indicate the ability of a firm to generate interest and whether the firm is
able to sustain the profitability in the future. Equity investors are concerned with the firm’s
ability to generate, sustain and increase profit. That is the reason it is imperative to lead the
Profitability investigation of an organization. The ratios that are utilized to gauge benefit are
otherwise called income statement ratios as these ratios are determined by depending on the
income statement information.
3-5.1 Gross Margin

^
Gross Margin ratio demonstrations the affiliation among the sales and manufacturing or
merchandising budget. Higher gross margin ratio is superior. Higher ratio means greater revenue
and inferior cost of revenue.
Gross Margin of Rahimafrooz CIC-Agro Ltd For 2016 and 2017 are given below:
Year 2016 2017

Gross Margin – 12.7% 10.9 %
Gross Margin = Revenue – Cost of sales ÷ Revenue
2016 = 57,780,234 – (65,153,787) ÷ 57,780,234
= – 0.127 or – 12.7 %
2017 = 75,105,335 – (66,895,813) ÷ 75,105,335
= 0.109 or 10.9 %
31
The comparisons of the data for 2016 as well as 2017 are exposed in the illustration below:
15.00%
10.00% 10.9%
5.00%
0.00%
2017 sales
-5.00%
-12.7%
-10.00% 2016
-15.00%
-20.00%
Figure: 3.3 Gross Margin

In 2016 gross margin was -12.7% which was negative revenue. In 2016 the Gross Margin was
10.9% which is exact worthy for the equity owners. On the other hand CIC-Agro has to work
hard for nourishing the Gross Margin in the forthcoming.
32
3-5.2 Operating Profit Margin:
^
Operating Margin demonstrations the firm’s profitability form the procedures of its vital
business. Apart from the effect of investment, financing and ^tax position. Higher operating
margin is superior for the company. Higher operating margin point out sophisticated operation
income and inferior operating cost.
Year 2016 2017

^ Operating Profit Margin 30.3% 54.6%
Operating profit Margin= Operating Earnings ÷ Sales Revenue
2016 = (65,153,787) - (45,365,209) ÷ (65,153,787)
= 0.303 or 30.3%
2017 = (66,895,813) - (30,370,150) ÷ (66,895,813)
= 0.546 or 54.6 %
[Note: Operating Earnings/EBIT = Gross Income - (Operating Expenses + Amortization and

Depreciation)]
33
The comparisons of the data for 2016 as well as 2017 are showing in the illustration below:
60.00%
50.00%
54.60%
40.00%
Profitability
30.00% 30.30%
20.00%
10.00%
0.00%
2016 2017
Figure: 3.4 Operating Margin

In 2016 Operating Margin was not bad percentage in 2017 besides Gross Margin was 30.30%. In
2017 Operating Margin was 54.60% which represent operating profit was greater in 2016. It also
shows operating cost were further down control in 2017. So, we can approximately that it is a
upright hint for the company.
34
3-5.3 Net Profit Margin:
^
Net Profit margin is computed in the wake of deducting every one of the costs from over all
activity. Net income is considered to compute the overall revenue. Higher net revenue
demonstrates higher net salary, so higher net revenue is better for the organization. Higher net
revenue guarantees higher benefit of the organization.
Year 2016 2017

Net Profit Margin 139.74% 88.11%
Net Profit Margin = Net Income (Loss) ÷ Sales Revenue

2016 = 91,048,725 ÷ 65,153,787
= 1.3974 or 139.74%
2017 = 58,942,758 ÷ 66,895,813
=0.8811 or 88.11%
The comparisons of the data for 2016 and 2017 are shown in the diagram below:
140.00%
120.00% 139.74%
100.00%
80.00%
88.11% Deduct Expense
60.00%
40.00%
20.00%
0.00%
2016 2017
35
Figure: 3.5 Net Profit Margin
In 2016 net profit margin was 139.74% which was high expenses for the company. In 2017 the
net profit margin was 88.11% which is good for company because company try to reduce their
expenses. On the other hand, we can say Rahimafrooz CIC Agro has to work hard for sustaining
the net profit margin in future.
3-5.4 Return on Asset (ROA):

^
ROA (Return on Asset) measures administration's capacity and effectiveness in utilizing the
company's assets for produce (EBIT) benefits. Higher ROA implies higher proficiency in using
its utility. Higher ROA also shows higher return for the organization. It reports the total return
accruing to all providers of capital.
3-5.5 Return on Equity (ROE):

^
The correlation between ROA and ROE mirrors the company's capital structure. ROA measures
return to all suppliers of capital. ROE measures the profits to the association's Capital Providers
and is figured in the wake of deducting the profits paid to banks. Higher ROE means the
shareholders will get more return.
36
3-6 Asset Management Analysis:-
^
Firm’s operation activities require investments in both short-term and long-term asset. Activity
ratios describe the relationship between the firm’s level of operations usually defined as sales
and the assets needed to sustain operating activities. The higher the ratio the more efficient the
firm’s operations are. Less resources are expected to help a given level of operation salse.
3-6.1 Inventory Turnover Ratio

^
Inventory turnover ratio Measures the efficiency of a firm’s inventory management. Although
the fact that inventories are considered as resources of an organization yet higher stock isn't
useful for an organization. As then it shows that the organization can't offer its inventories. A
higher ratio demonstrates that stock does not stay in distribution center but rather turns over
quickly. So higher stock turnover ratio is better for an organization.
3-6.2 Total Asset Turnover Ratio

^
Add up to assets turnover ratios measure how much deals we can create with a given level of
total assets. Higher total assets turnover ratio indicates higher productivity of utilizing its assets
for make revenue.
3-6.3 Fixed Assets Turnover Ratio

^
Fixed assets turnover ratio measure how much sales we can make by using an agreed level of
fixed assets. Higher the ratio is better it indicates we can utilize our assets properly to generate
higher sales.
3-6.4 No. of Days Sales &Receivables Outstanding

^
How long, an organization takes to turnover its receivables are considered as No. of days
receivables remarkable of that organization. Lower the quantity of days is the better. As it shows
that the organization can turnover its receivables in less number of days.
37
3-7 Debt Management Ratio Analysis:-
^
Inspect the capital structure, including the blend of its financing sources and the capacity of the
firm to fulfill its long-term debt and investment obligations.
3-7.1 Debt to Asset Ratio Analysis

^
Total debt to total assets is a leverage ratio that defines the total amount of debt relative to assets.
This empowers examinations of use to be made crosswise over various organizations. Higher the
ratio, higher the level of use and therefore financial risk. This is a wide ratio that incorporates
long-term and short-term obligation and also all assets intangible & tangible.
3-7.2 Times Interest Earned:

^
Times Interest Earned (TIE) ratio is more direct measure of the firm’s ability to meet interest
payments. Higher the TIE ratio better the company’s condition is. Higher TIE ratio ensures that
the firm is sufficient in paying its interests.
38
CHAPTER – 4
Findings, Recommendations
And Conclusion
39
4.1 Major Findings
1. In 2016 Current Ratio of Rahimafrooz CIC Agro was 0.419 and 2017 Current Ratio was
0.569. The Current Ratio of 2017 was better than 2016.
2. Rahimafrooz CIC Agro Quick Ratio was 0.288 in 2016 and 2017 Quick Ratio was 0.424.
The Quick Ratio of 2017 was better than 2016.
3. In 2016 Gross Margin was -12.7% which was negative income and indicate that net loss
throughout the year. Then again, in 2017 the Gross Margin was 10.9% which seems good
^
for company.
4. In 2016 Operating Profit Margin was 30.3% which is not a bad percentage after all. On
the other hand, in 2017 Operating Profit Margin was 54.6% which indicates good
performance for the company.
5. In 2016 Net Profit Margin was 139.74% which stipulate high expenses for the company.
But during 2016 the Net Profit Margin was 88.11% that is good for the company.
40
4.2 Recommendations
✓ I see that the 2016 Current ratio was poor. As a result, I will suggest that if CIC Agro
focuses to recover it they must be increasing their sales volume.
✓ The Quick ratio of the company was lower during 2016 in comparing with 2017. That’s
why the company should take their higher inventory which can be the quickly converted
into cash.
✓ Gross margin of CIC-Agro represent the correlation among the sales in addition
manufacturing cost. Higher the gross margin ratio is better for the company but we saw in
2016 gross margin was negative that was bad for company. So their main mission should
be growing up their sales volume.
✓ During 2017 Operating margin was better than 2016. If they increase their Operating
margin they must be control their total Operating cost.
✓ In 2016 we axiom that Net profit margin was so high. It was shows negative effect of the
company. If they continue their business with low expenses they need to continue to
work hard for reducing their expenses level.
41
4.3 Conclusion
It is commonly reported that, unless you are a crystal gazer, long-term business planning is a
fantasy and nourishing a successful business is an inferno of a lot of tough effort, besides
continuing ravenous is half the clash. I attempted central core to investigate the particular angles
(finance and accounting) of the organization. I have absence of viable abilities, information and
experience. So the proposals I made could be outdated close to another expert reports. Working
in an association like Rahimafrooz CIC-Agro Ltd was a genuine test for unequivocal reasons.
The organization isn't sold in the market and in addition it’s developing level. It requires far to
achieve the development level. Still it is making a solid business and adds to nation's
development which is a decent sign. As a fresher, this is my first involvement in corporate life. I
attempted to utilize my hypothetical skills and knowledge in the work put. I could associate a
great deal of speculations with reality. Then again, various speculations went to no utilization.
Be that as it may, this is only a short period of time. I assembled my skills and experienced and
found out about the corporate workplace, morals and standards. I remain this experience will
help me a considerable measure in my future expert life.
42
PART – THREE
Appended Part
A. Bibliography
B. References
43
A. Bibliography
❖ The Analysis and Use of Financial Ratios: A Review Article by Paul Barnes online issue
in 2006.
❖ Intermediate Accounting-15th edition by Donald E.Keiso, Weygandt& Warfield
❖ Business Ratios Guidebook: Latest Edition Book by Steven M. Bragg
❖ Managerial Accounting 15th Edition by Ray H. Garrison
❖ Bangladesh Accounting Standard (BAS)
❖ Ratio analysis Lecture Sheet from M. Mokarrom Hossain (Professor-DIU)
44
B. References
Publications
• Audit Report of Rahimafrooz CIC Agro Limited
• 4 Years Annual Report of Rahimafrooz CIC Agro Limited
• 7th Board Paper of Rahimafrooz CIC Agro Limited
• Daily Profit and Loss Statements
• Business Journal and Magazine Published by Rahimafrooz.
• Several Newsletters, Booklets & Brochure of Rahimafrooz.
Websites
• Rahimafrooz CIC Agro Limited owns website
• http://www.rahimafrooz.com/OurBusinesses/Companies/RahimafroozCICAgroLtd/tabid/
137/Default.aspx
• http://www.rahimafrooz.com/Home/CompanyContacts/tabid/119/Default.aspx
• https://en.wikipedia.org/wiki/Rahimafrooz
• https://www.readyratios.com/
• https://globalaccountantweb.com
• https://www.accountingcoach.com/
• https://www.investopedia.com/
• https://google.com
45

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Internship Report

Financial Performance through Ratio Analysis of

Date of Submission: 26th July 2018

©Daffodil International University

©Daffodil International University

©Daffodil International University

©Daffodil International University

July 26, 2018

Subject: Submission of Internship Report on “Financial Performance through Ratio Analysis’’

©Daffodil International University

©Daffodil International University

©Daffodil International University

©Daffodil International University

Chapter- 2 : Profile of Rahimafrooz CIC-Agro Ltd

©Daffodil International University

3.3 Ratio Analysis 26-27

3.4 Liquidity Analysis 27-30

3.5 Profitability Analysis 31-36

3.6 Asset Management Analysis 37

3.7 Debt Management Ratio Analysis 38

Chapter- 4 : Findings, Recommendations and Conclusion

4.1. Major Findings, 40.

©Daffodil International University

Objectives of the study are as follows:

1. To evaluate financial performance through ratio analysis on Rahimafrooz-CIC Agro

2. To assess the liquidity of the company.

3. To compute the profitability of the company

4. To appraise asset management efficiency of the company

5. To make some recommendations based on findings

1.5-1 Sources of Data:

1.5-2Data Collection Method:

The key limitations contain:

Profile of Rahimafrooz CIC-Agro Ltd.

home frameworks achieve the clients in the provincial territories of Bangladesh.

Rahimafrooz, CIC-Agro Limited, (RCAL) is a new operational business of agro products

2-2 Corporate Information:-

Rahimafrooz CIC-Agro Limited (RCAL) was established in 2011 as an Emerging Joint

❖ To be a leader of the best quality produce from ‘Seed to Shelf’.

❖ To be the pioneer of Diversified & Best Quality Product Varieties.

❖ To commit customer delight through operational excellence, innovation & continual

❖ Best after sales service provider in Agribusiness

2-4 Mission Statement:-

contributing significantly to GDP and ensuring trust from grower to consumer.

2-5.1 Storage Power

COMPANIES IN THIS PARTITION

• Rahimafrooz, Accumulators, Ltd.

2-5.2 Automotive, and Electronics

COMPANIES IN THIS PARTITION

• Rahimafrooz -Distribution Ltd.

COMPANIES IN THIS PARTITION

• Rahimafrooz^ Renewable Energy Ltd.

COMPANIES IN THIS PARTITION

• Rahimafrooz Superstores Ltd.

2-5.5 Agro Products

COMPANIES IN THIS PARTITION

• Rahimafrooz ^CIC-Agro Ltd.

2-5.6 Other Ventures^

❖ Integrity : We are honest, transparent and ethical in all our dealings.

❖ Teamwork : We believe in trust, truth and team effort.

❖ Making a Better World: We compassionately contribute to the community we live in.

❖ R&D : We strive to learn and innovate new paradigms.

❖ Every Taka Counts : We treat every taka spent as our own.

❖ Director: Niaz Rahim