Browsing by Author "Haque, M. Mujibul"

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A study on the financial soundness of Bangladesh cement industry using Altman z-score on selected listed companies
(BRAC University, 2020-06) Siddika, Sadia Tasnim; Haque, M. Mujibul
This internship report titled as “A Study on The Financial Soundness of Bangladesh Cement Industry Using Altman Z-Score on Selected Listed Companies” is submitted for the purpose of completion of my undergraduate studies at BRAC Business School and it is based on the internship period of three months (1st January, 2020 to 31st March, 2020) under Finance & Planning Department at Siam City Cement (Bangladesh) Limited. Firstly, this report includes my internship experience about the various tasks I was assigned with, the things I learned and how I contributed to the company as well as the difficulties faced during the internship. Also, a few recommendations such as intern’s access to database, providing challenging work etc. to make the organization’s internship program better. Secondly, this report provides an overall analysis of the organization. Management practices include a brief description of their employment practice, performance evaluation, people excellence policies etc. Marketing practices include information of their products & services, price, promotional activities etc. Financial & Accounting practices include various ratio analysis to understand their financial condition and a brief description about their accounting practices. Operations Management & Information System Practices include brief descriptions about their procurement & production, multimodal logistics service, information system etc. Also, for strategic audit analysis porter’s five forces industry analysis and SWOT analysis were conducted to understand the various issues of the organization along with a brief description of Covid-19 pandemic impact on the organization. Recommendations such as alternative logistics method, re-evaluation of cost analysis etc. were made for the organization. Finally, the project part includes the research of financial soundness of the cement industry based on the analysis of Altman Z-score with the five selected companies listed in Dhaka Stock Exchange. It was conducted using profitability, leverage, liquidity, solvency, and activity parameter ratios to predict financial health. Net working capital to total assets analysis showed the firm’s ability to cover its short-term obligations. Retained earnings to total assets which showed how the firm funds their operations. Earnings before interest and tax to total assets showed the capacity to earn profit and covering immediate debt obligations. Market value of equity to total liabilities describes the firm’s value compared to its liabilities in the market. Sales to total assets showed the firm’s efficiency in using its resources. And all these parameters were used to calculate the final Z-Score which indicated that the financial soundness of the industry is in a precarious situation. Impact of this analysis on my internship organization was also mentioned. Recommendations such as sales & industry management, utilization of assets, re-evaluation of cost management, utilization of export opportunities were made for the companies of the cement industry so that they can perform better and overcome the financial crisis. To conclude, this internship experience has provided me with an opportunity to apply what I have learned during my undergraduate studies as well as gaining professional work knowledge.
Analysis on business development services of YUASA battery
(BRAC University, 2019-08) Nova, Mahmudur Rahman; Haque, M. Mujibul
Today any business that is unique has its own value. And a business which is already established in many foreign countries but new to an under developing country like Bangladesh has a great room for improvement and expand. There my internship report takes a stance which is about the Original Equipment Manufactured batteries also known as OEM Batteries of a famous Japanese Brand Yuasa Battery. My report will mainly focus on 3 major parts which will cover most of the issues. 1. Overview of the internship –Where I will give a briefing of my report and which parts can it cover 2. Company Background – Where I will brief about the company and its background on which this report has been made. 3. Project part- This is the part where all my analysis and finding are given and some recommendations by which the company can overcome their issues.
Equity research on Grameen Phone
(BRAC University, 2021-09) Chowdhury, Faisal Rahman; Haque, M. Mujibul
This internship report reflects my experiences as an intern in the research department of the head office in BRAC EPL Stock Brokerage LTD. The report also discusses the overview of the company and my project “Equity Research on Grameen Phone”. The report thoroughly analyzes the organizational structure of the company and its policies. Moreover, the report looks at the products and services offered by the company. Financial performance of the company is analyzed and compared with last 5 years performances. It will be seen that due to the covid pandemic, the company’s financial performance has been low compared to last few years’ performance. Furthermore, a strategic analysis of the company has been conducted, exploring the company’s strengths, weaknesses, opportunities and threats. The company’s main strength has been observed to be its dominant market share of over 55% in the foreign portfolio investment execution segment and the biggest weakness of BESL is comparatively less presence in the retail investment than other brokerage houses. A nation's economic development and growth are dependent on well-productive investments. However, it would be impossible to achieve without securing the availability of long-term funding and their effective and efficient applications. Stock market plays a significant role in this matter. Alile (1984) argued that overall growth of an economy depends on how efficiently a stock market is working in channeling funds into productive economic units. Economic growth in emerging economies is strongly depending on stock market (Mauro, 2000). A capital market can play an important role in capital formation and allocation because it provides a platform for investment opportunities with a competitive pricing mechanism, which in turn influences investors' sentiment to save and invest domestically. However, the success of a capital market is largely determined by how investors react to information about capital markets while making investment decisions. v Bangladesh, as a developing country, continues to offer domestic and foreign investors numerous potential investment opportunities in the capital market. The Dhaka Stock Exchange (DSE), the largest of Bangladesh's two stock exchanges, has emerging market characteristics. DSE has recently experienced a remarkable shift in its operations. The Dhaka Stock Exchange's (DSE) benchmark index DSEX crossed 6,400 points for the first time in its history. On 25th July, DSEX rose 0.29% to reach 6,424 points, earlier the DESX’s highest position was 6338 points on 26 November,2017 since it’s launching in 2014. Grameenphone Limited (GP) is the largest service provider in the telecommunication sector in Bangladesh. Telenor Mobile Communications AS is the immediate parent of GP is and Telenor ASA is the ultimate parent, both of these companies were incorporated in Norway. Grameenphone has a very efficient management that accelerating solid growth in subscriber acquisition, net profit with well controlled OP-EX even in a difficult business environment. Grameenphone has been maintaining a strong brand image and active subscribers base have positioned the company leading of its competitors. The purpose of this report is to provide an investment recommendation on Grameenphone. Grameenphone was listed in 2009 in Dhaka Stock Exchange (DSE) with launching the biggest IPO during that time since the independent in 1971. It has an authorized capital of 40,000,000,000 and a paid-up Capital of 13,503,000,000. The sponsor group Norway's telecom giant Telenor & directors holding the 90% of the share, while 4.66%,3.16% & 2.18% of the shares are held by Institutions, Foreign and General Public, respectively (as of 19th July, 2021). It has positioned in A category of the market and AAA credit rating score that reflects its high quality of earnings. The board of directors places a high value on excellent corporate governance and is committed to ensuring the Company's business and operations' long-term viability by incorporating good vi governance ethics and business integrity into the company's plans and operations. Individually, the present board of directors and management committee are highly competent and have extensive expertise in several fields. Mr. Yasir Azman was appointed as CEO of Grameenphone in 2020. He was previously the Deputy Chief Executive Officer of Grameenphone. He also worked for Grameenphone as the Chief Marketing Officer. Mr. Azman formerly worked as the Telenor Group's Head of Distribution and eBusiness, where he was responsible for all of Telenor's operations. In addition, Grameenphone's senior management and board of directors have extensive expertise in their respective areas as well as in-depth understanding of the business in order to preserve Grameenphone's competitive advantage as a market leader. Bangladesh had seen an increase in mobile internet penetration in last 10 years and increase in data usage for the adoption to mobile broadband technologies that facilitate an unprecedented data revenue growth in the telecommunication sector in Bangladesh hence the revenue growth of Grameenphone since Grameenphone alone holds the 40% market share in the industry. However, during last year, Grameenphone faced few restrictions imposed by Bangladesh Telecommunication Regulatory Commission (BTRC) that had a huge impact on Grameenphone year-on-year revenue growth. Bangladesh will experience unprecedented rise in data revenue. The increase will be fueled by both an increase in data subscribers and an increase in data usage. We breakdown Grameenphone revenue into two sources: Data Revenue and Voice & Other revenues. We estimated data revenue will growth at CAGR of 15% and voice & other revenues will grow at CAGR 4% for next 4 years. Investment risk is categorized into three parts. These are market risk, financial risk and operational risk. Transformation/ Modernization Risk is the market risk, operational risk consists of network risk, cyber-attacks risk, and regulatory risk, financial risks are credit risk, liquidity risk, exchange vii rate risk and interest rate risk. Financial risk is low to medium for Grameenphone as Grameenphone is not exposed to any kind of financial risk, Market risk is low to medium since Bangladesh are already adopting with new technology and operation risk is medium to high since there might be regulatory changes from BRTC. To perform valuation till now FCF model have been used. In the FCFE model, the WACC (Weighed Average Cost of Capital) was calculated 8.65%, where as the cost of equity was calculated following the CAPM model which is 13.4% and after-tax cost of debt was calculated which is 5.4%. With the FCF model we got a fair value of BDT 407 for Grameenphone. I am yet to perform the Relative valuation for Grameenphone with its peer companies from local and oversee. It will be done by the submission of second draft. After that I will be able to get a weightage price from both valuation method. GP’s valuation was based on the macro, sector and company analysis. The market price on 12 September, 2021 was BDT 387.8. So, from the FCF valuation it can be deducted that GP will have a 5% price upside in December 2021. So, this report provides a BUY recommendation on Grameenphone.
Financial feasibility study of an upcoming real estate project of Elegant Group
(BRAC University, 2021-06) Chowdhury, Rayan Mahabub; Haque, M. Mujibul
This internship report reflects my experiences as an intern in the finance department of the head office in Elegant Group. The report also discusses the overview of the company and my project “Financial Feasibility Study of An Upcoming Real Estate Project of Elegant Group”. The report thoroughly analyzes the organizational structure of the company and its policies. Moreover, the report looks at the strategies implemented by the company in its operations. Financial performance of the company is analyzed and compared with past years performances. It will be seen that due to the covid pandemic, the company’s financial performance has been low compared to last year’s performance. Furthermore, a strategic analysis of the company has been conducted, exploring the company’s strengths, weaknesses, opportunities and threats. The company’s main strength has been observed to be its financial backing and its diverse business units and seems to be weak in implementing technology in its operations. As a result, facing threats from other companies who are technologically advanced. The report extensively focuses on the financial feasibility of a real estate project by Elegant Group. It focuses on the financial aspects and implications of the project. Moreover, the project deals with the calculation of costs associated with the project as well as calculation of the area, sales amount, timeline etc. Keeping the Covid-19 pandemic in mind, the financial estimates and assumptions have been taken accordingly and conservatively by the company. With those estimates all the financial calculations (cost of debt, cost of equity, etc.) have been determined and then the cashflows have been calculated respectively. The net present value, discounted payback period and the MIRR have been calculated and the values have been favorable for the project. So, the project should be accepted. Lastly, but not the least a scenario analysis have been done to test the condition of the project in different scenarios based on the covid-19 pandemic.
Financial inclusion and analysis of Shopfront Ltd.
(BRAC University, 2020) Alam, Kazi Ayman; Haque, M. Mujibul
Doing Internship and writing a report is an integral and important part of the BBA Program. To complete the degree, I need to write this report by keeping in mind that both my academic knowledge that I achieved from the program’s courses and practical experience, I gained while working at ShopFront Ltd. where I worked as an intern for almost 3.5 months. I joined ShopFront Ltd (ShopUp) in October and since than I have been working with the Finance and Accounts team of one of the ShopUp site business Unicorn (a food distribution business, connecting with big distribution houses to resell their product at a reasonable price to the customer through apps or shopping stores). Working there has been an amazing journey for me since I got to learn a lot about the finance and accounts related work and also about the B2B platform how it works. Not only that, but it has also given me to understand about the micro entrepreneurs how they resell their products through online. ShopUp is the only B2B platform F commerce in Bangladesh till now. It has been doing great with it’s site businesses like REDX which is a logistics business responsible for delivering products all around Bangladesh, BlueX is giving opportunity to micro entrepreneurs to come up and resell their products through shopUp apps so that they can earn something and start doing something of their own. Moreover, there is Unicorn who acts as a distribution channel by grabbing big distributors to sell their products to customers or other retailers or whole salers through the same app and lastly their ShopUp eloan credit who gives eloans to micro entrepreneurs to start their business to resell their products that is under BlueX. Furthermore, the management policy of hiring process and conducting an interview is being done under their career page or other social medias like linkedin, facebook, bdjobs etc. They do their branding through Instagram, Facebook or Youtube to make aware of their services especially REDX about delivering products. Moreover, the finance and accounts department play a vital role in the company, the balance sheet and income statement they create is basically the business profit what comes from the business, the assets they are financing, the debts they have been clearing and other investors who have been investing so that they can finance on their assets and cover up the debts. The ratios, trend analysis and common size analysis gives an idea about the company financial status of how they are doing in the market, till now they do not have competitors, so they are playing safe at the market. And lastly their operations team who are involved with day-to-day operations in the company and IT department gives or provides support through technology to run the operations smoothly. The objective of the report is to forecast the company financial income statement and balance sheet to see what their status in their upcoming journey will be. For which a proforma income statement and balance sheet is being created by which sales forecasting is being created to look up the annual growth rate of the company from 2018-2022 (2020-2022, forecasted years), then AFN method (a simple financial approach to find out how much amount of fund is required to make the business runs smoothly), then forecasting financial ratios to see whether their assets, liabilities or equity is improving or not. Since I joined, I have seen the company improved a lot from 2019 as most of the time they financed their assets with debt but after getting a huge investment they started financing those on their assets, covering up the debts, and getting more return on assets and equities which shows they have been generating their income precisely and by forecasting they will do more. I have done forecasting and AFN and sales forecasting approaches to see the financial economic condition whether they will do better or not and bring changes in the statements.
Fund management for BRAC microfinance programme
(BRAC University, 2021-01) Sattar, Mayeesha Samiha; Haque, M. Mujibul
This internship report was prepared with reference to the three months long internship period that I had the opportunity of doing in the main headquarters of BRAC, from 08 October, 2020 to O7 January, 2021. It was prepared in an attempt to give a clear picture to the readers of how funds are managed for the smooth running of the Microfinance Programme. Additionally, the study also outlines the corporate structure of BRAC and will assist in understanding the diversified subsidiaries operated by the company. However, I have specifically focused on the Microfinance programme which falls under the social development criteria of the business. As, I have been given the opportunity to work in the Finance and Accounts department of BRAC NGO, where my supervisor was in charge of managing funds for the programme. The first part of the report scrutinizes an overview of my entire affiliation period with the company. I have begun with providing information regarding my internship followed by highlighting the job tasks and responsibilities. After that, this part will help understand the potential benefits and difficulties that the future interns might have to face, learning from my experience. The second part of the report contains a brief introduction of the company followed by a comprehensive summary of its different ventures and investments. Subsequently, the cultural practices and the financial condition of the company have been briefly discussed. A SWOT analysis has been conducted here in order to assess BRAC’s industry competitiveness. The last part of the report is entirely focused on the process of arranging, collecting and disbursing of the funds required for the Microfinance programme which has been precisely termed as “Fund Management”. For a clear understanding, the project part begins with explaining the operations of MF and puts forward other crucial data regarding the programme. This part also involves a SWOT analysis which is developed based upon the efficiency and shortcomings of the programme. I would like to conclude by saying that it was a great honor for me to get the opportunity to be able to join the finance team as an intern. I have been given the privilege to work with amazing individuals who made sure I was comfortable learning in this environment. Last but not least, I consider it to be a big milestone in my career development. It was three great months which I will cherish forever
Impact of SAF on BRAC University
(BRAC University, 2021-07) Zain, Fahria; Haque, M. Mujibul
The internship report was produced with reference to the three-month period I had the chance to study from 08 March 2021 to 09 June 2021 in the BRAC University. It was designed to provide readers a clear picture of the effect of SAF on BRAC University. The report also explains how SAF has assisted students during this time of crisis and how BRAC University has managed to reduce their pandemic risk. However, I focused particularly on BRAC University's major contribution via SAF to this important danger. As such, my job was in the department of finances and accounts at BRAC university, where my supervisor was responsible for the management of the student service program. The first chapter of the study examines an overview of my whole university affiliation time. I have started with giving informations about my internship, followed by emphasizing duties and tasks. This section will then enable you to comprehend the possible advantages and challenges future interns may encounter, drawing from my experience. The second section of the report provides a short introduction to the institution and an elaborate overview of its all departments and facilities. The financial status of the university was then briefly addressed. A SWOT analysis has been performed here to evaluate the competitiveness of the BRAC Universitye54t. The final section of the study focuses completely on SAF operations, how it works, the consequences of SAF, called "SAF impact." The project section starts to describe the functions of SAF and provides other important system data for a good understanding. This section also includes a SWOT analysis which is based on program efficiency and weaknesses. To conclusion, it was a wonderful experience for me to have the chance to join the financial team as an intern. I was privileged to work with wonderful people who ensured I felt comfortable working in this atmosphere. Last but not least, I see this as a great milestone in my profession. It had been three wonderful months I've always cherished.