Internship Paper

Letter of Transmittal
June17, 2016
To
The Supervisor
Department of Finance
Faculty of Business Administration
Premier University Chittagong
Subject: Submission of Financial Statement Analysis on
Ultimate It solution.
Dear Madam,
It is indeed my pleasure to submit the Financial Statement Analysis
report to you for your kind appraisal. I have completed my Financial
Statement Analysis at the Head Office of Ultimate IT Solution
Bangladesh. During internship, I got huge amount of support from
the officials for preparing my report in time. The experiences I have
gathered will be very helpful in the professional life.
I believe, this report will be quite interesting and fulfill your
expectation. I have tried to give my best efforts to prepare a
comprehensive report. I will be grateful if you accept my report and
your kind consideration will be highly appreciated.
Sincerely Yours,
Juton Kumar Phal
ID:1402020801700
Program: MBA(1-Yeay)
Batch: 20th
Department of Finance
Faculty of Business Administration
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IT SOLUTION BANGLADESH Page 1
Premier University, Chittagong
TO WHOM IT MAY CONCERN

This is certify that Mr. Juton Kumar Phal, a student of Premier University,
Chittagong,Major in Finance, ID: 1402020801700, Program: MBA(1Year) has
successfully completed internship program from 15th March 2016,to 25th may,
2016.During the period of internship programe he has been found to be substantally
proactive, energetic & Theoritically sound regarding Financial operation of our
company,Anderkilla Chittagong.
We wish his every success in life and hope for a better future esteemed organization.
Jitu Barua
Managing Partner
Ultimate UT Solution
Phone: 01983401410
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ACKNOWLEDGEMENT
A Financial Statement Analysis cannot be completed without significant help from

others. First I gratefully acknowledge the help and support from my Boss,Collige
parents, teachers, employers, friends and others, whose support has been invaluable
for me. I would like to thank the following people for their contribution in this
industrial attachment:
I am grateful to our honorable director Mr jitu Barua, for join me Ultimate IT
Solution Bangladesh.
I express my gratitude to my honorable academic supervisor,Mrs Tasmia
Tahlil, Lacturer, who has monitored and directed me for this report.
I thank Mr Sojib Barua,Director and CEO of Ultimate IT Solution Bangladesh
for giving the job at executive Business Development.
I also thank Mr Saroj Das, Head of Microfinance Product & Services,
Ultimate IT Solution Bangladesh for his extreme support and guide
I also grateful to Md. Rased Bin Hares, Softaware Engineer, Ultimate IT
Solution Bangladesh.
I thank Mr Nantu Das, Support Software Engineer, Ultimate IT Solution
Bangladesh.
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EXECUTIVE SUMMARY
Ultimate IT Solution Bangladesh is one of leading software developing company in
Bangladesh. They develop innovative and cost effective software services in both
commercial and government sectors. With the advent of modern technologies they
also incorporate their customers with new application and ideas. They have well
trained professional to develop software and meet the customer demand. Their
unique approach to train and develop human resources to adapt to the market
demands leads them to national as well as international market.
The Software Engineering Institute's (SEI) Capability Maturity Model Integration
(CMMI) is a respected industry yardstick used to measure the maturity of software
development processes."Achievement of CMMI Level 3 rating is a prestigious
recognition of Ultimate IT Solution engineering capabilities and a testament in its
quality management system and software applications. Also, the rating of Maturity
Level 3 confirms that Ultimate IT Solution Bangladesh has established well-defined,
repeatable, and effective standards for project management, software engineering and
quality assurance maintaining a focus on continuous process improvement & as well
as operational excellence.
With the huge support of professional developers Ultimate IT Solution Bangladesh is
trying to emphasis the newer technologies like Mobile application development,
Bioinformatics, Microfinance and many more. They have a lot of experience to work
with rest of the software industry. They have developed many software solutions to
the corporate leaders and government.
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Table of Contents
Sl No.
Contents
Chapter: 1 (Background of the Report)
Page
No.
10
1.1
Background
11
1.2
Objectives of the Report
11
1.2.1
Broad Objective
11
1.2.2
Specific Objectives
11
1.3
Scope of the Report
11
1.4
Methodology
12
1.4.1
Primary Sources
12
1.4.2
Secondary Sources
12
1.5
Limitations of the Report
Chapter: 2 (The Organizational information)
12
13
2.1
An Overview of DataSoft Systems Bangladesh

Limited
14
2.2
Vision, Values and Mission
14
2.2.1
Vision
14
2.2.2
Values
14
2.2.3
Mission
14
2.3
Quality Management Framework (QMF)
14
2.4
Quality Achievement
15
2.4.1
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DataSofts Achievement: CMMI Level 3 & ISO
15
9001
2.4.2
15
International Alliance
2.5
Who They Serve
16
2.6
Business Area
16
2.7
Functional Domains
16
M
ob
ile
A
pp
lic
at
io
n
D
ev
el
op
m
en
t
2.7.1
16
2.7.2
Microfinance
17
2.7.3
Simulation
17
2.7.4
Swapnojaatra
18
2.7.5
Banking Software
18
2.8
Services
18
2.8.1
Custom Software
18
2.8.2
IT Consultancy
22
2.8.3
Offshore Development
23
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2.8.4
QA/Testing Services
23
2.8.5
QA / Testing Consultancy
24
Life at DataSoft
2.9
Chapter: 3 Theoritical Aspact
3.1
3.2
3.3
Financial Performance Analysis
27
Financial Accounting
27
Financial Statement
3.4.1
3.4.2
3.7.1
3.7.1.a
3.7.1.b
Income Statement
28
Method ofAnalysis and Interpretation

Ratio Analysis
SignificanceofRatio Analysis
3.7.2
3.7.3
3.7.4
3.8
28
Limitations of Financial Statement Analysis
27
Balance Sheet
Financial Statement Analysis
3.6
3.7
25
26
Objectives
3.4
3.5
24
29
29
30
30
31
Group of Financial Ratios
32
Comparative Balance Sheet
34
Common Size Balance Sheet
34
Trend Analysis
34
Analyzing liquidity
35
3.8.1
Current Ratio
35
3.8.2
Quick Ratio
35
3.8.3
Net working Capital
36
3.9
Analyzing Activity
36
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3.9.1
3.9.2
36
Asset TurnoverRatio
37
Inventory TurnoverRatio
3.9.3
Debtor Collection Period
37
3.9.4
Fixed Asset Turnover
37
3.10
Analyzing Debt
38
3.10.1
DebtRatio
38
3.10.
2
3.10.3
38
Equity CapitalRatio
38
Times Interest Earned
3.11
AnalyzingProfitability
39
3.11.1
Operating profitRatio
39
3.11.2
3.11.3
Profit MarginRatio
Return on Assets
39
39
3.11.4
Return on Equity
40
3.11.5
Earnings Per Share
40
4
4.1
Chapther: 4 Body of the report

Five YearsFinancialHighlights of UIT
Chapther: 5 Problem & Suggestion(Financial Performance

Analysis)
41
42
45
5.0
Ratio Analysis
46
5.1
Capital
46
5.1.1
5.1.2
5.2
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Paid-up-capital
Shareholders equity
Liquidity Ratios
46
46
47
5.2.1
5.2.2
5.3
Current Ratio
Net working Capital
Activity Ratios
47
48
49
5.3.1
Cost Income Ratio
49
5.3.2
Total Assets Turnover
50
5.4
DebtRatios
51
5.4.1
Debt Ratio
51
5.4.2
Time Interest Earned Ratio
52
5.4.3
5.5
5.5.1
Equity CapitalRatio
Profitability Ratios
Net Profit Margin
53
53
53
5.5.2
Return on Assets (ROA)
54
5.5.3
Return on Equity (ROE)
55
5.5.4
Earnings Per Share
56
5.6
Market Ratio
58
5.6.1
Price Earnings Ratio
58
Chapther:6 Major Findings, Recommendations &

Conclusion
59
6.1
Major Findings
60
6.2
Recommendations
62
6.3
Conclusion
63
Biography
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64
Chapter: 1
Background of the Report
1. Background
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IT SOLUTION BANGLADESHPage 10
I am very lucky to get the opportunity to complete my financial Statement Analysis at Ultimate
IT Solution . Since Ultimate IT Solution is a leading software company and developing software
from a long ago in Bangladesh I am consider myselves timely to get chance to take a deep look
to their development methods, working models, deals and industrial behavior.
I intended to look into the software industry and how it looks like, what are their rules,
responsibility and environment. Obviously they work with almost every platform and
technologies. I worked with the part of Mobile Application Development team and generated
ideas based on smartphones. Mainly we developed three android applications which run on the
android devices.
While developing the android apps we tried to follow the coding conventions and user
satisfaction criteria to maintain the quality of the software. Software quality assurance is one of
the main challenges of the industry.
1.2 Objectives of the Report
The report has broad and specific objectives to follow.
1.2.1 Broad Objective:
TheprimeobjectiveofthereportistoanalyzetheFinancialPerformanceof
Ultimate IT Solution
1.2.2 Specific Objectives:
Thefollowingaspectscanbelistedasthespecificobjectivesforthispracticalorientationin
Ultimate IT Solution:
o Tocalculatethefinancialratiosandidentifytheareasofconcern.
o Tounderstandtheimplicationsinanalyzingandinterpretingthefinancialratios.
o ToevaluatethefinancialperformanceofUltimateITSolution.
o Toidentifythefindingsandraisepossiblerecommendationsforimprovingthe
performanceofUltimateITSolution.
1.3 Scope of the Report
This report is made only for academic purpose and to fulfill the requirement for Financial
Performance. This report has covered the direct and indirect aspects of software industry and
their challenges. In addition, the report is focused on only Financial purpose. With the
advancement of these mobile applications all over the world Bangladesh is also trying to cope
with that.
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1.4 Methodology
For this report, information has been gathered from both primary and secondary sources.
1.4.1 Primary Sources:
For primary data, several face-to-face interviews have been conducted with officials from
different departments of Ultimate IT Solution . Information provided by them has been very
important for this report. I am conducted with the following professionals:
Saroj Das, Head of Microfinance Product & Services, Ultimate IT Solution.
Md.Rased Bin Hares, Softaware Engineer, Ultimate IT Solution.
Jitu Barua, Senior Software Engineer, Ultimate IT Solution.
Nanto Das, Software Developer, Ultimate IT Solution.
1.4.2 Secondary Sources:

To understand CMMI Level, software quality assurance, Agile method, Scrum data has been
gathered from the internet and different articles and the sources have been given in the references
part.
1.5 Limitations of the Report
While gathering information, analyzing and representing them I have faced some limitations.
However, despite the limitations I have tried hard to prepare a comprehensive and rather
interesting report. The overall limitations of the report are mentioned below:
Some statistical and qualitative data that were needed were not fully obtained. The
Finance and Accounts officials, along with the Supply Chain officials were part of core
team development. Because they were very busy, I had difficulties in meeting and
gathering information from them.
Because of organizational confidentiality, I could not put or disclose some information in
the report.
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Chapter: 2
The Organizational information
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2.1 An Overview of Ultimate IT Solution.

Ultimate IT Solution is a CMMI Level - 3 & ISO 9001:2008 certified leading software company
in Bangladesh. Founded in 1998. Ultimate IT Solution has successful track records for delivering
most innovative and cost-effective technical services to customers in both commercial and
Government sectors. Since its inception back in 1998, stepped into the core field of ICT to cater
to the needs of enterprise, governance and economy. Strengthened by a strong team of
experienced professionals Ultimate IT Solution has a unique approach towards continuous
training and development of human resources to adapt to the market demands for the national
and international venues. Ultimate IT Solution is incorporating new technology to further expand
client base and continue to serve clients with a little more than utmost satisfaction.
2.2 Vision, Values and Mission
2.2.1 Vision:
Powered by innovation, guided by integrity, deliver quality solutions to build The Digital Delta.
2.2.2 Values:
Customer Satisfaction is permanent to business successso they strive to exceed customer
expectations.
Ultimate IT Solution is result orientedso they seek continuous improvement through
aggressive, attainable goals.
They are committed to innovation because innovations can transform the way our
customers do business.
Great teams build great companiesso they seek to attract, develop and retain leading
talent. Ultimate IT Solution aspires to leadby setting the standards that others emulate.
They are honest and fair in their dealings with customer, partners, shareholders and each
other
2.2.3 Mission:
To maintain the leading software solution provider ensuring benefit of customers,
shareholders and employees
Developing, disseminating and exploiting the remarkable experience, expertise and
knowledge of all of our people
Developing a distinctive competence in process development and project management
2.3 Quality Management Framework (QMF)
Ultimate IT Solution Quality Management focuses on following process areas:
1. Requirement Development
2. Technical Solution
3. Product Integration
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4. Verification
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5. Validation
6. Organizational Process Focus
7. Organizational Process Definition
8. Organizational Training
9. Integrated Project Management
10. Risk Management
11. Decision Analysis and Resolution
2.4 Quality Achievement

2.4.1 Ultimate IT Solution sAchievement: CMMI Level 3 & ISO 9001
Ultimate IT Solution achieved CMMI Level 3 since 2009.The Software Engineering Institute's (SEI)
Capability Maturity Model Integration (CMMI) is a respected industry yardstick used to measure the
maturity of software development processes."Achievement of CMMI Level 3 rating is a prestigious
recognition of Ultimate IT Solution software engineering capabilities and a testament in its quality
management system and software applications.
The SEI-CMMI Level 3 certification signifies an important milestone in the company's quality
journey. Based on our belief in continual improvement, the company will focus on certification
for CMMI Level 5 further. Conformance to the 17 process areas prescribed by the SEI CMMI
Capability Level 3 was appraised using the Standard CMMI Appraisal Method for Process
Improvement approach. The method involves the examination of many types of evidence, as well
as interviews with program leaders, quality assurance and configuration management personnel,
and organization and project practitioners to demonstrate standard processes are being followed.
The evaluation was conducted by an independent team authorized by SEI.
Ultimate IT Solutions history of process improvement includes its achievement of the ISO 9001
certification. The implementation of an effective quality management system (QMS) certified to
ISO 9001 offers a clearly structured, systematic approach to improving the customer experience,
help Ultimate IT Solution streamline internal processes, become more efficient and ultimately
meet business goals and objectives.
2.4.2 International Alliance
a.
b.
c.
d.
e.
f.
g.
h.
TEMENOS
- SWITZERLAND
NAVIS
- USA
ELITECORE - INDIA
COSMOS
- BELGIUM
GROUPCARE - DENMARK
iMEDIA
- LONDON, UK
ROGRESS TECHNOLOGY - JAPAN
ST ENGINEERING - SINGAPORE
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2.5 Who They Serve

Ultimate IT Solution has nearly thirteen years experience developing, implementing customized
solutions for organizations around the world, in more than 20 industries, in public and private
sectors, from startups to multinational companies.
Ultimate IT Solution customers include health care, engineering / construction firms & owner /
operators, manufactures, utility & communication companies, military & intelligence agencies,
electricity production and distribution, sea port, finance & banking, government agencies,
development agencies and many more. Through their work in many countries, DataSoft
customers make the world safer and more prosperous.
2.6 Business Area

Healthcare
Supply Chain Management
Finance & Banking
Collaboration & Messaging
Business Consulting
E-Commerce
Software Development
Security
Chemical Industry
Electricity Production & Distribution
Wireless & Mobile
Telecommunication
Information Management
Internet Service Provider
Portals
Microelectronics & Technology
Solution for Entertainment
Entertainment
2.7 Functional Domains

2.7.1 Mobile Application Development
MobioApp is the mobile application development powerhouse. Ultimate IT Solution is planning
to revolutionize the mobile industry with Continuous innovation. They have students,
experienced developers, members from software programming, from communications, from
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creative arts & crafts and from a ton of other disciplines. They are trying to brand Bangladesh as
the Global Leader in Mobile Development.
They develop mobile apps for Android, iOS, Windows phone and Blackberry. They have expertise
for any kind of mobile application development. Their apps are on the following markets:
2.7.2 Microfinance
The Microfin360 is a Micro-Finance Management Software specially developed for the
Microfinance Institutes, NGOs and Cooperative Societies to automate their work-flow. It is
Mirofinance Regulatory Authority (MRA) & domestics apex financing organization for
Microfinance- Palli Karma-Sahayak Foundation (PKSF) compliance solution having rich set of
features, hundreds of parameterized reports, management statistical dashboard and centralized
operation facility. This software features integrated Management Information System (MIS),
Accounting Information System (AIS) & Human Resource (HR) modules.
Microfin360 can be called as Credit Bureau for MFIs that serves
Unique borrower identification.
Product risk management
Overlapping identification
Platform independent operation to feed multiple data source from the MFIs
2.7.3 Simulation
Ultimate IT Solution designs and develops a wide range of sophisticated modeling and
simulation tools, consulting and services. DataSoft is the foremost simulator developer in
Bangladesh. They have successfully developed Air Defense Artillery Fire Control Simulation
System (ADAFCSS) for Bangladesh Army. This simulation includes technologies and software
tools to better understand, analyze and optimize the dynamics and behavior of complex, physical,
biological or geographic systems. In general, simulation is used if system behavior is too
complex to be understood analytically.
Computer simulations can represent real or imaginary situations. They allow users to study or try
things that would be difficult or impossible to do in real life. Simulations are particularly useful
when a real-life process:
Is too dangerous,
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Takes too long,

Is too quick to study,
Is too expensive to create.
2.7.4 Swapnojaatra
Swapnojaatra is a research lab conducting biological researches with special focus on
Bioinformatics. Swapnojaatra is a Bangla word for Dream-Journey. The goal of this lab is to
perform state of art research in Modern Biology and make a revolution of bioinformatics through
collaborative research over the country and abroad. Although this lab is a non-commercial
institute, but it is going through a self-sustaining economic model; basically financed and
patronized by DataSoft Systems Bangladesh Limited.
This lab has been started with the Jute Genome Project in Bangladesh. Initially it was a jointventure of three institutes; University of Dhaka (DU), Bangladesh Jute Research Institute (BJRI)
and DataSoft Systems BD Ltd. After completion of the Genome project Phase-1 successfully, the
venture has been closed and Swapnojaatra is carried out by Ultimate IT Solution Systems from
that time.
Swapnojaatra is recently going forward towards research in structural bioinformatics that would be a
beneficial part of Pharmacy and Biotechnology. It has many dimensions of bioinformatics and
medical informatics researches. At present time, the lab is focusing on computer aided drug design.
2.8 Services
2.8.1 Custom Software
2.8.1.1 Business Application
Competitiveness in the global marketplace requires speed and agility at every level. Businesses
must respond quickly to meet customer demand, improve speed to market, react swiftly to
changing market conditions and constantly seek gains in productivity and profitability. A
sophisticated business application platform is critical to achieving these objectives. Business
Application development software to real-world problems requires leading technology and an
expert team. Our professional programmers are developing all sorts of application software may
need including games, educational software, office applications, internet software, utilities, text
and graphics editors, communication software.
List of major completed or in implementation phase of Business Applications are given bellow:
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Product
Description of the products

Asset: Fixed Asset Register is a total solution for the fixed asset management
of
an enterprise. Asset is used to register and handle all fixed assets of an
organization where history of all assets is permanently recorded. This includes
asset group, asset sub group, individual asset, user, location, supplier, change of
depreciation rate, appreciation and disposal or sales information. It can
automatically calculate the depreciated amount, BV (Written down value),
opening balance and closing balance of an asset during the time of execution of
a period-end process.
In Benipack software Gratuity and Provident accounts of the employees can

be kept. In this software the following facilities can be achieved: Calculate
employees opening balance and closing balance of GR and PF account
automatically. Better service with high accuracy. Saves time. Less manpower
is required to maintain GR and PF accounts. Save cost.
DS Retail is a combination Point of Sale (POS) and Back Office Control

systems for general retail stores. In DS Retail features ease of use and fast,
accurate checkouts that reduce human error.
DS Dining is a completely integrated chain restaurant management system.

It is a software package that can readily be used off the shelf, and just as
easily be customized as desired. DS Dining can be used to manage
individual restaurants as well as multiple restaurant chains.
Microfin360 is A Complete Solution for Micro-Finance Organizations.

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Microfin360 Solution includes Management Information System (MIS),

Accounting Information System (AIS) and Human Resource Management
System (HRM).
2.8.1.2 E-commerce Solution

Ultimate IT Solution provide customized E-Commerce solutions for local and international clients.
Today e-commerce has revolutionized the system of communication and commerce. It has brought
dramatic transformation in the way the consumers purchase and consume the goods and services at
the online auction sites. Ultimate IT Solution has earned the reputation of being the best provider of
internet and e-commerce solutions to a wide range of industries. Ultimate IT Solution designs,
develops and manage its clients website and all these are done in a productive environment to ensure
its clients success.
The clients at Ultimate IT Solution gets the personal attention they deserve and because of which
the relationship with our clients are maintained even after the work is done. The customers at
Ultimate IT Solution gets immense satisfaction when they get the results that far exceed their
expectations. Ultimate IT Solution provide a wide range of e-commerce solutions to our clients and
the positive feedback which we receive from them is a vital ingredient for company success. On the
other hand the positive feedback that our clients receive motivates them to establish stronger
relationship with us. We make your business grow. Our team of professional designer, web
developers and internet market has the capability to deliver easy to use and in expensive solutions
that can help bring in excellent profits to our valuable clients company. Some of the services which
we provide are:
Net Banking
Online Transactions
Money transfer
Online Payment
2.8.1.3 MIS Solution
Solutions can guide you to choose and implement the right technology for your business. Ultimate
IT Solutions MIS solutions integrate disparate business processes and improve productivity and
efficiency within enterprises. Customized MIS solutions may include HR & Payroll Management,
Customer Relationship Management, Sales Tracking System, Operations Management, Accounting
Management, Asset Management, Projects Management and Admin portal etc. For many of our
clients, selecting one of our MIS packages is becoming a 'relationship for life'.
Some of Ultimate IT Solutions MIS Solutions are given bellow:

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Name of Client / Description of the Project Project
Project: Management Implement and maintain an integrated Management Information

Information System (MIS) System in order to strengthen the organization for sustainable
Client: RAJUK development by building the capacity and improving services through the
Institutional Human Resource Development which will help the RAJUK in effective urban
planning, development,development control and monitoring and good governance.
Project: MIS
Client: Queens
Limited
QueensDevelopment of an Integrated Solution for Queens Apparel Ltd. of

ApparelJaya Group of Industries consisting of integration of the following
Modules: Merchandising Management System, Commercial
Management System, Financial Accounting System, Inventory
Management System, Production Management System, Payroll
Management System and Personal Management Information
System.
Project: MIS
MiracleMiracle MIS is an integrated Solution for a Poly-Propylene Woven
Client: Miracle Industries Bag Factory. The integrated solutions consisting of the following
Limited
Modules: Financial Accounting System, Inventory Management
System, Production Management System, Commercial Module
Merchandising, Human Resource Management System etc.
Project: MIS
Client: DADA
Limited
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DADAThe MIS solutions for DADA (Dhaka) Limited incorporate Printing

(Dhaka)of Commercial Invoice, Printing of Packing List, Maintenance of
Records of L/Cs, Maintenance of Records of Back to Back L/Cs and
Maintenance of other statutory records.
Project:
Jaya
MISThe Jaya MIS solutions Financial Accounting System features are
Client:
Jaya Group ofgiven bellow: General Ledger, Subsidiary Ledger, Trail Balance,
Industries
Profit & Loss Account, Balance Sheet, Cash/Bank Books, and
Comparison of Budget with actual etc.
2.8.1.4 Web Development

In todays market website development plays a vital role for an organization. It is a onetime
investment with huge returns. Web development solutions find its way in the implementation of
business policies on the web by the use of data services. If you are looking for software consultant to
develop your web application or website then DataSoft is the stoppage for you as it provides practical
and reliable advises for your business. DataSoft is an expert in web development solutions. It
provides services across the globe which is within the budget and is customer centric.
Ultimate IT Solution web development focusing areas are:

Web Application Development
Web and Enterprise Portal Development
Web Design and Development
2.8.1.5 Web Application Development:
Ultimate IT Solutions expert team has taken part in hundreds of web application development
projects. Ultimate IT Solution is experienced in developing advanced systems with complex
business logic dealing with large amounts of data and transactions. We are able to supply the
clients with innovative, trustworthy web application solutions to complement your most
complicated business ideas.
Key Features of Website Development:

Appealing and professional style
Consistent overall layout
Consistent corporate identity
Colors compatibility
Rational space usage
User-friendly interface
Intuitive navigational schemes
AJAX-powered interactivity
Task-oriented workflow
Accessibility standards
2.8.2 IT Consultancy
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Ultimate IT Solution is a company designed to meet the needs of today's fast growing business
firms that require experienced IT consultancy support. Ultimate IT Solution aims to provide
companies with experienced and motivated IT consultants. They also provide support to the
small to medium businesses that currently do not have support contracts.
Ultimate IT Solution can provide everything from initial design and draft requirements, help with
the specifications needed to satisfy business needs, advice on testing, installation, and systems
integration, right through to support of clients IT infrastructure. Ultimate IT Solution holds the
industry best IT consultant in distinctive field such as:
Simulation
Port & Logistics
Software Technology Park (STP)
Customs Operations etc.
2.8.3 Offshore Development
Ultimate IT Solution is a fast growing Offshore Software Development Company in Bangladesh.
Offshore software development lets you concentrate on your competencies rather than struggling to
overcome the learning curve and manage the ever-increasing resource requirements. Being a talent
mine, Bangladesh is a hot destination to outsource for many companies from all across globe.
Ultimate IT Solution helps client optimize resource utilization, minimize risks and enhance long
term profitability.
Ultimate IT Solution is a leading provider of Offshore Software Development services to
Solutions Software Development services such as:
Software development
Application development
Database integration
System integration
Client server technology
QA / Testing
Benefits of Offshore Development:
Cost effectiveness - Salaries of IT professionals are significantly lower in
Bangladesh than those in the west.
Best Practices offshore outsourcing companies are focused heavily on
quality and continuous process improvement, offshore development centers
operate at high levels of efficiency, predictability, and reliability.
Risk minimization- High process maturity greatly reduces the risk of project
failures and provides significant advantage when managing service level
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agreements.
24x7 operations - There is a time differential between onshore and offshore
destinations which translates into a virtual 24/7 kind of operation for your
projects.
2.8.4 QA/Testing Services

Dynamic business needs mandate superior performance of your IT systems. Your applications
need to be secured and user-friendly, while also responding faster and complying with prevailing
regulations. Quality assurance (QA) and testing are extremely crucial in the software
development cycle and should be introduced at the earliest stage of the project. Ultimate IT
Solution holds industry best dedicated Quality Assurance Resources and a wide range of
comprehensive testing methods and tools to deliver only the highest quality solutions. Ultimate
IT Solution QA specialists are SEI CMMI certified expert in multiple technologies, platforms
and standards.
Ultimate IT Solution Quality Assurance and Testing services focused areas are:
Functional and Regression Testing
GUI and Usability Testing
Accessibility Testing
Compatibility Testing
Performance Testing
Installation/Configuration Testing
System/Integration Testing
Security Testing
Internationalization/Localization Testing
User Acceptance Testing (UAT)
2.8.5 QA / Testing Consultancy

Full Lifecycle Process Improvement
QA Process Consulting
Test Strategy Elaboration and Management
2.9 Life at Ultimate IT Solution
Ultimate IT Solution looks for the right talents to meet business needs and to create homely as
well as a professional environment that allows them to work at their best. Ultimate IT Solution
believes to be an employee driven company who are innovative, free-thinking, diverse,
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proactive, and in need of a challenge.
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Chapter:Three
TheoreticalAspect
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3.1FINANCIALPERFORMANCEANALYSIS
Financialperformanceanalysisistheprocessofidentifyingthefinancialstrengthsand
weaknessesofthefirmbyproperlyestablishingtherelationshipbetweentheitemsof
balancesheetandprofitandlossaccount.Italsohelpsinshorttermandlongterm
forecastingandgrowthcanbeidentifiedwiththehelpoffinancialperformance
analysis. The dictionary meaning of analysis is to resolve or separate a thing in to its
elementorcomponentspartsfortracingtheirrelationtothethingsaswholeandtoeach
other.Theanalysisoffinancialstatementisaprocessofevaluatingtherelationship
betweenthecomponentpartsoffinancialstatementtoobtainabetterunderstandingof
the firms position and performance. This analysis can be undertaken by management of
thefirmorbypartiesoutsidethenamely,owners,creditors,investors.
Theanalysisoffinancialstatementrepresentsthreemajorsteps:
Thefirststepinvolvesthereorganizationoftheentirefinancialdatacontainedthe
financial statements. Therefore the financial statements are broke down into
individual components and regrouped into few principle elements according to
their resemblances and affinities. Thus the balance sheet and profit and loss
accounts are completely recasted and presented in the condensed form entirely
different from their original shape. The second step is the establishment of
significantrelationshipsbetweentheindividualcomponentsofbalancesheetand
profit and loss account. This is done through the application tools of financial
analysis like Ratio analysis, Trend analysis, Common size balance sheet and
comparativeBalancesheet.
Finally,theresultobtainedbymeansofapplicationoffinancialtoolsisevaluated.
Inbrief financial analysis is the process ofselection, relationand evaluationof

financialstatements.Thetoolsofanalysisareusedfordeterminingtheinvestment
valueofthebusiness,creditratingandfortestingefficiencyofoperation.
Thus financial analysis helps to highlight the facts and relationships concerning
managerial performance, corporate efficiency, financial strength and weakness and
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creditworthinessofthecompany.
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3.2OBJECTIVES
Toanalyzethefinancialchangesoveraperiodoffiveyears.
Toanalyzethefinancialstatementsofthecompanybyusingfinancialtools.
Toevaluatethefinancialpositionofthecompanyintermsofsolvency,
profitability,activityandearningsratios.
Tosuggesteffectivemeasuresintheexistingsystemofthecompany.
3.3FINANCIALACCOUNTING
Financialaccountingistheprocessofsystematicrecordingofthebusinesstransactions
in the various books of accounts maintained by the organization with the ultimate
intentionofpreparingthefinancialstatementtherefrom.Thesefinancialstatementsare
basically in two forms. One, profitability statement which indicates the result of
operationscarriedoutbytheorganizationduringagivenperiodoftimeandsecond
balancesheetwhichindicatesthestateofaffairsoftheorganizationatanygivenpoint
oftimeintermsofitsassetsandliabilities.
Main purpose of financial accounting is to ascertain profit or loss and to indicate
financialpositionofanenterprise.Twofundamentalstatementsoffinancialaccounting
areincomeandexpenditurestatementandbalancesheet.Theprofitandlossaccountor
income and expenditure account is prepared for a particular period to find out the
profitabilityofthefirmandbalancesheetispreparedonaparticulardatetodetermine
thefinancialpositionofthefirm.
Financial accounting summaries transactions taking place during a period with the
objectiveofpreparingthefinancialstatement.
3.4FINANCIALSTATEMENT
FinancialStatement refers to formal ad original statements prepared by a business
concern to disclose its financial information. According to John.N.Meyer, The
financialstatementprovidessummaryofaccountsofabusinessenterprise,thebalance
sheet reflecting assets, liabilities and capital as on a certain date and the income
statement showing the result of operation during a certain period. The financial
statementsarepreparedwithaviewtodepictthefinancialpositionoftheconcern.
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They arebasedontherecordedfactsandareusuallyexpressedinmonetaryterms.The
financialstatementarepreparedperiodicallythatisgenerallyfortheaccountingperiod
Thetermfinancialstatementhasbeenwidelyusedtorepresenttwostatementsprepared
byaccountantsattheendofspecificperiod.Theyare:
Balancesheetorstatementoffinancialposition
Profitandlossa/corincomestatement
3.4.1BalanceSheet
In financial accounting, a balance sheet or statement of financial position is a
summaryofthefinancialbalancesofasoleproprietorship,abusinesspartnership,a
corporationorotherbusinessorganization,suchasanLLCoranLLP.Assets,liabilities
andownershipequityarelistedasofaspecificdate,suchastheendofitsfinancial
year. A balance sheet is often described as a "snapshot of a company's financial
condition". Of the four basic financial statements, the balance sheet is the only
statementwhichappliestoasinglepointintimeofabusiness'calendaryear.
A standard company balance sheet has three parts: assets, liabilities and ownership
equity.Themaincategoriesofassetsareusuallylistedfirst,andtypicallyinorderof
liquidity.Assetsarefollowedbytheliabilities.Thedifferencebetweentheassetsand
theliabilitiesisknownasequityorthenetassetsorthenetworthor capital ofthe
companyandaccordingtotheaccountingequation,networthmustequalassetsminus
liabilities.
3.4.2IncomeStatement
Anincomestatement(USEnglish)orprofitandlossaccount(UKEnglish)isoneofthe
financialstatementsofacompanyandshowsthecompany'srevenuesandexpenses
duringaparticularperiod.Itindicateshowtherevenues(moneyreceivedfromthesale
ofproductsandservicesbeforeexpensesaretakenout,alsoknownasthe"topline")are
transformedintothenetincome(theresultafterallrevenuesandexpenseshavebeen
accountedfor,alsoknownas"netprofit"orthe"bottomline").
Itdisplaystherevenuesrecognizedforaspecificperiod,andthecostandexpenses
chargedagainsttheserevenues,includingwriteoffs(e.g.,depreciationandamortization
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ofvariousassets)andtaxes.Thepurposeoftheincomestatementistoshowmanagers
andinvestorswhetherthecompanymadeorlostmoneyduringtheperiodbeing
reported.
3.5FINANCIALSTATEMENTANALYSIS
Theprocessoffinancialstatementanalysisisofdifferenttypes.Theprocessofanalysis
isclassifiedonthebasisofinformationused.Theclassificationisasunder:
a) Externalanalysis
b) Horizontalanalysis
c) Internalanalysis
d) Verticalanalysis
3.6LIMITATIONOFFINANCIALSTATEMENTANALYSIS
Financialstatementanalysisisaveryimportantdevicebutithascertainlimitations
which are to be kept in mind. Following are the limitations of financial statement
analysis.
1. Basedonpastdata:Thenatureoffinancialstatementsishistorical.Pastcannot
betheindexoffutureestimation,forecasting,budgetingandplanning.
2. Financialstatementanalysiscannotbeasubstituteforjudgment:Analysis
isatoolwhichcanbeutilizedusefullybyanexpertmayleadtoerroneous
conclusionbyunskilledanalysis.Thustheresultanalysiscannotbeconsidered
asjudgmentorconclusion.
3. Reliability of figures: The accuracy and reliability of analysis depends on
reliabilityoffiguresderivedfromfinancialstatement.
4. Differentinterpretation:Resultoftheanalysismaybeinterpreteddifferently
bydifferentuser
5. Changeinaccountingmethods:Analysiswillbeeffectiveifthefigurestaken
fromfinancialstatementscomparable.Iftherearefrequentchangeinaccounting
policies and method, figures of different periods will be different and
comparable.
6. Pricelevelchange:Theeverrisinginflationerodesthevalueofmoneyinthe
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presentdayeconomicsituation,whichreducesthevalidityofanalysis.
7. Limitationsofthetoolsofanalysis:Differenttechniquesofanalysisareused
byananalyst.Thesetoolsaresuitablefordifferenttypeofanalysis.
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3.7METHODOFANALYSISANDINTERPRETATION
Theanalysisandinterpretationoffinancialstatementisusedtodeterminethefinancial
positionandresultofoperationaswell.Thefollowingarethetoolsthatareusedfor
analyzingthefinancialpositionofthecompany:
RatioAnalysis
Comparativebalancesheet
Commonsizebalancesheet
Trendanalysis
3.7.1RatioAnalysis
A tool used by individuals to conduct a quantitative analysis of information in a
company'sfinancialstatements.Ratiosarecalculatedfromcurrentyearnumbersand
are then compared to previous years, other companies, the industry, or even the
economytojudgetheperformanceofthecompany.Ratioanalysisispredominately
usedbyproponentsoffundamentalanalysis.
Ratioanalysisisanimportantandageoldtechnique.Itisapowerfultooloffinancial
Analysis. It is defined as The indicated quotient of two mathematical expressions and
as the relationship between two or more things .Systematic use of ratio is to interpret
the financial statement so that the strength and weakness of a firm as well as its
historicalperformanceandcurrentfinancialconditioncanbedetermined.
Aratioisonlycomparisonofthenumeratorwiththedenominator.Thetermratiorefers
tothenumericalorquantitativerelationshipbetweentwofigures.Thus,ratioisthe
relationshipbetweentwofiguresandobtainedbydividingaformerbythelatter.Ratios
aredesignedshowhowonenumberisrelatedtoanother.
Thedatagiveninthefinancialstatementsareinabsoluteformandaredumbandare
unabletocommunicateanything.Ratiosarerelativeformoffinancialdataandarevery
usefultechniquetocheckupontheefficiencyofafirm.Someratiosindicatethetrend
orprogressordownfallofthefirm.
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3.7.1.ASignificanceOfRatioAnalysis
Ratiosareguidesorshortcutsthatareusefulinevaluatingthefinancialpositionofacompanyandthe
operations ofa company from scientific facts.It helps in comparison of changes in static data from
previousyearstocurrentyearandwiththecomparisonofothercompaniesaswell.Inaccountingand
financialmanagementratiosareregardedastherealtestofearningcapacity,financialsoundnessand
operatingefficiencyofbusinessconcern.
Thefollowingpointshighlighttheimportanceofratioanalysis:
SimplifiesAccountingFigures: Themostsignificantobjectiveofratioanalysisisthat itsimplifiesthe
accountingfiguresinmucheasierwaybywhichanyonecanbeunderstooditquiteeasilyevenforthose
whodonotknowthelanguageofaccounting.
MeasuresLiquidityPosition:Liquiditypositionofafirmissaidtobesatisfactoryifitisabletomeetits
currentobligationasandwhentheymature.Afirmissaidtobecapableofmeetingitscurrentobligation
only,ifithassufficientliquidfundstopayitsshorttermobligationswithinaperiodofyear.Hence,the
liquidityratiosareusedforthepurposeofcreditanalysisbybanksandothershorttermlenders.
MeasuresLongtermSolvency:Ratioanalysisisequallyimportantinevaluatingthelongtermsolvency
ofthefirm.Itismeasuredbycapitalstructureorleverageratios.Theseratiosarehelpfultolongterm
creditors,securityanalystsandpresentandprospectiveinvestors,astheyrevealthefinancialsoundnessor
weaknessofthefirm.
MeasuresoperationalEfficiency: Ratiosareusefultoolsinthehandsofmanagement to evaluate the
firms performance overaperiodoftimebycomparingthepresentratios
withthepastratios.Variousactivityorturnoverratiosmeasuretheoperationalefficiencyofthefirm.
Theseratiosareusedingeneralbythebankers,investorsandothersuppliersofcredit.
MeasuresProfitability: Themanagementaswellasownersofafirmisprimarily concernedwiththe
overallprofitabilityofthefirm.Profitandlossaccountrevealstheprofitearnedorlossincurringduringa
period,butfailstoconveythecapacityofthe firmtoearnintermsofmoneyofsales.Profitabilityratios
helptoanalysisearning capacityofthefirm.Returnoninvestment,returnoncapitalemployed,netprofit
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ratios etc.arethebestmeasuresofprofitability.
3.7.1.BGroupsOfFinancialRatios
Intheviewoftherequirementsofthevarioususersofratio,itisdividedintothe
followingimportantcategories.
1. Liquidityratios
2. Activityratios
3. Debtratios
4. Profitabilityratios
FinancialRatios
Liquidity
NetWorking
Capital
CurrentRatio
Quick(Acid
Test)Ratio
ActivityRatio
DebtRatio
ProfitabilityRatio
Inventory
Turnover
Average
Collectio
nPeriod
GrossProfit
Margin
Degreeof
Indebtedness
Average
Payment
Period
Fixed
Asset
Turnover
Debt
Ratio
TheAbility
toService
Debt
Time
Interest
Earned
Debt
Equity
Fixed
Ratio
Payment
Coverage
Ratio
Total
Asset
Figure:GroupsofFinancialRatios
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Operating
ProfitMargin
NetProfit
Margin
ROI
ROE
EPS
P/ERatio
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LiquidityRatios
Liquidity ratios measure the ability of the firm to meet its a current obligation. In fact,
analysisofliquidityneeds thepreparationofcashbudgets andcashandfundflow
statements;butliquidityratios,byestablishingarelationshipbetweencashandother
currentassettocurrentobligationsprovideaquickmeasureofliquidity.
AfirmshouldensurethatitdoesnotsufferFromlackorliquidity,anditdoesnothave
excessliquidity.thefailureofthecompanytomeetitsobligationsduetoitslackof
liquidity, will result in a poor creditworthiness, loss of creditors confidence, or even in
legaltanglesresultingintheclosureofthecompanyaveryhighdegreeofliquidityis
alsobadidleassetsearnnothing.Thefirmsfundwillbeunnecessarilytiedupincurrent
assets.Thereforeitisnecessarytostrikeaproperbalancebetweenhighliquidityand
lackofliquidity.
ActivityRatios
Activity Ratio highlights the activity and the operational efficiency of the business
concern.Thebettermanagementsofassertsthelargertheamountofsales.Activity
ratiomeasurestherelationshipbetweenthesalesandtheassets.Turnoverratiosare
employedtoevaluatetheefficiencywithwhichthefirmmanagesandutilizesitsassets.
Theirratioindicatesthespeedwithwhichassetsarebroughtconvertedasturnoverinto
sales.
ProfitabilityRatios
Profitability reflects the final result of the business operations. Profit earning is
consideredessentialforthesurvivalofthebusiness.Therearetwotypesofprofitability
ratiosprofitmarginratioandtherateofreturnratios.Profitmarginratioshowsthe
relationshipbetweenprofitandsales.
Popularprofitmarginratiosaregrossprofitmarginandnetprofitmarginratio.Rateof
return ratio reflects between profit and investment. The important rates of return
measuresarerateofreturnontotalassetsandrateinequity.
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EarningsRatios
Earnings are income to the shareholders of the share invested by them. Hence the
earningsratiowillbeusefultotheinvestorstothevalueofthesharesthatisbeen
holdingbythem.
3.7.2ComparativeBalanceSheet
The comparative balance sheet is helpful in analyzing and evaluating the financial
positionofthefirmoveraperiodofyears.Thecomparativebalancesheetanalyzeisthe
studyofthetrendofthesameitems,groupofitems,andcomputeditemsintwoormore
balancesheetofthesamebusinessenterpriseondifferentdates.
The changes in periodic balancesheet items reflect the conductofa business.The
changescanbeobservedbycomparisonofthebalancesheetatthebeginningandatthe
endoftheperiodandthesechangescanhelpinforminganopinionabouttheprogress
ofanenterprise.
4.7.3COMMONSIZEBALANCESHEET
Financialstatementswhenreadinabsolutefigurearenoteasilyunderstandable.They
areevenmissleading.Eachitemsofassetisconvertedintopercentagetototalasset
andeachitemofcapitalandliabilitiesisexpressedtototalliabilityandcapitalfund.
Thusthewholebalancesheetisconvertedintopercentageformi.e.,everyindividual
item stated as a percentage of total 100.such converted balance sheet is known as
commonsizebalancesheet.Thepercentagesocalculatedcanbeeasilycomparedwith
thecorrespondingpercentagesinsomeotherperiod.
4.7.4TrendAnalysis
The trend signifies a tendency and as such the review and appraisal of tendency in
accountingvariablesarenothingbutthetrendanalysis.Trendanalysisiscarriedoutby
calculating trend ratio. Trend analysis is significant for forecasting and budgeting.
Trendanalysisdisclosesthechangeinfinancialandtheoperatingdatabetweenspecific
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periods.
3.8ANALYZINGLIQUIDITY
Liquidityratio,expressesacompany'sabilitytorepayshorttermcreditorsoutofits
total cash. The liquidity ratio is the result of dividing the total cash by shortterm
borrowings.Itshowsthenumberoftimesshorttermliabilitiesarecoveredbycash.If
thevalueisgreaterthan1.00,itmeansfullycovered.
LiquidityRatiomayreferto:
Reserverequirement,abankregulationthatsetstheminimumreserveseach
bankmusthold.
AcidTest(LiquidityRatio),aratiousedtodeterminetheliquidityofabusiness
entity.
3.8.1CurrentRatio
Thecurrentratioisafinancialratiothatmeasureswhetherornotafirmhasenough
resourcestopayitsdebtsoverthenext12months.Itcomparesafirm'scurrentassetsto
itscurrentliabilities.Itisexpressedasfollows:
CurrentRatio=CurrentAsset/CurrentLiabilities
The current ratio is an indication of a firm's market liquidity and ability to meet
creditor'sdemands.Acceptablecurrentratiosvaryfromindustrytoindustryandare
generallybetween1.5and3forhealthybusinesses.Ifacompany'scurrentratioisin
this range, then it generally indicates good shortterm financial strength. If current
liabilitiesexceedcurrentassets(thecurrentratioisbelow1),thenthecompanymay
haveproblemsmeetingitsshorttermobligations.Ifthecurrentratioistoohigh,then
thecompanymaynotbeefficientlyusingitscurrentassetsoritsshorttermfinancing
facilities.Thismayalsoindicateproblemsinworkingcapitalmanagement.
3.8.2QuickRatio
In finance, the Acidtest or quick ratio or liquid ratio measures the ability of a
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companytouseitsnearcashorquickassetstoextinguishorretireitscurrentliabilities
immediately.Quickassetsincludethosecurrentassetsthatpresumablycanbequickly
convertedtocashatclosetotheirbookvalues.AcompanywithaQuickRatioofless
than1cannotcurrentlypaybackitscurrentliabilities.
QuickRatio=Cash+GovernmentSecurities+Receivable/TotalCurrent
Liabilities
Generally,theacidtestratioshouldbe1:1orhigher;howeverthisvarieswidelyby
industry.Ingeneral,thehighertheratio,thegreaterthecompany'sliquidity(i.e.,the
betterabletomeetcurrentobligationsusingliquidassets).
3.8.3NetWorkingCapital
Workingcapital (abbreviated WC)isafinancialmetricwhichrepresentsoperating
liquidityavailabletoabusiness,organizationorotherentity,includinggovernmental
entity. Along with fixed assets such as plant and equipment, working capital is
consideredapartofoperatingcapital. Networkingcapital iscalculatedascurrent
assetsminuscurrentliabilities.Itisaderivationofworkingcapital,thatiscommonly
usedinvaluationtechniquessuchasDCFs(Discountedcashflows).Ifcurrentassets
arelessthancurrentliabilities,anentityhasaworkingcapitaldeficiency,alsocalleda
workingcapitaldeficit.
NetWorkingCapital=TotalCurrentAssetTotalCurrentLiabilities
3.9ANALYZINGACTIVITY
Anactivityratioisametricwhichdeterminestheabilityofacompanytoconvertits
balancesheetaccountsintorevenue.Activityratiosassesshoweffectivelyacompanyis
abletogeneraterevenueintheformofcashandsalesbasedonitsasset,liabilityand
capitalshareaccounts.Examplesofsuchratiosincludetheinventoryturnoverratioand
theaccountsreceivableturnoverratio.
Activityratiosarecriticalinevaluatingacompany'sfundamentalsbecause,inaddition
toexpressinghowwellacompanygeneratesrevenue,activityratiosalsoindicatehow
wellthecompanyisbeingmanaged.
3.9.1Assetturnover
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Assetturnoverisafinancialratiothatmeasurestheefficiencyofacompany'suseofits
assetsingeneratingsalesrevenueorsalesincometothecompany.
Companieswithlowprofitmarginstendtohavehighassetturnover,whilethosewith
highprofitmarginshavelowassetturnover.Companiesintheretailindustrytendto
haveaveryhighturnoverratioduemainlytocutthroatandcompetitivepricing.
TotalAssetTurnover=Sales/TotalAsset
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"Sales" is the value of "Net Sales" or "Sales" from the company's income
statement
"AverageTotalAssets"istheaverageofthevaluesof"Totalassets"fromthe
company'sbalancesheetinthebeginningandtheendofthefiscalperiod.Itis
calculatedbyaddinguptheassetsatthebeginningoftheperiodandtheassetsat
theendoftheperiod,thendividingthatnumberbytwo.
3.9.2InventoryTurnover
Inaccounting,theInventoryturnoverisameasureofthenumberoftimesinventoryis
soldorusedinatimeperiodsuchasayear.Theequationforinventoryturnoverequals
theCostofgoodssolddividedbytheaverageinventory.Inventoryturnoverisalso
knownasinventoryturns,stockturn,stockturns,turns,andstockturnover.
InventoryTurnover=CostofGoodsSold/AverageInventory
3.9.3DebtorCollectionPeriod
Theterm DebtorCollectionPeriod indicatestheaveragetimetakentocollecttrade
debts.Inotherwords,areducingperiodoftimeisanindicatorofincreasingefficiency.
It enables the enterprise to compare the real collection period with the
granted/theoreticalcreditperiod.
DebtorCollectionPeriod=(AverageDebtors/CreditSales)x365
Averagedebtors=Debtorsatthebeginningoftheyear+Debtorsattheendoftheyear,
dividedby2
CreditSalesareallsalesmadeoncredit(i.e.excludingcashsales)Alongdebtors
collectionperiodisanindicationofsloworlatepaymentsbydebtors.
Themultipliermaybechangedto12(formonths)or52(forweeks)ifappropriate.
3.9.4FixedAssetTurnover
Fixedassetturnoveristheratioofsales(ontheprofitandlossaccount)tothevalueof
fixedassets(onthebalancesheet).Itindicateshowwellthebusinessisusingitsfixed
assetstogeneratesales.
FixedAssetTurnover=GrossTurnover/NetFixedAssets
Generallyspeaking,thehighertheratio,thebetter,becauseahighratioindicatesthe
ULTIMATE
business has less money tied up in fixed assets for each unit of currency of sale
revenue.
3.10ANALYZINGDEBT
The debt position of that indicates the amount of other peoples money being used in
attemptingtogenerateprofits.Ingeneral,themoredebtafirmusesinrelationtoits
totalassets,thegreateritsfinancialleverage,atermusetodescribethemagnificationof
riskandreturnintroducedthroughtheuseoffixedcostfinancingsuchasdebtand
preferredstock.
3.10.1DebtRatio
DebtRatioisafinancialratiothatindicatesthepercentageofacompany'sassetsthat
areprovidedviadebt.Itistheratiooftotaldebt(thesumofcurrentliabilitiesandlong
termliabilities)andtotalassets(thesumofcurrentassets,fixedassets,andotherassets
suchas'goodwill').
DebtRatio=TotalLiabilities/TotalAssets
Thehighertheratio,thegreaterriskwillbeassociatedwiththefirm'soperation.In
addition,highdebttoassetsratiomayindicatelowborrowingcapacityofafirm,which
inturnwilllowerthefirm'sfinancialflexibility.Likeallfinancialratios,acompany's
debtratioshouldbecomparedwiththeirindustryaverageorothercompetingfirms.
3.10.2EquityCapitalRatio
Acomputationthatindicatesthefinancialstrengthofacompany.Theratioisequalto
thefixedassetsofacompanydividedbyitsequitycapital.Equitycapitalistheamount
ofmoneyinvestedinacompanybyitsshareholders.Iftheratioisgreaterthan1,some
ofthecompany'sassetshavebeenfinancedbydebt.
EquityCapitalRatio=FixedAssets/EquityCapital
3.10.3TimesInterestEarned
Timesinterestearned(TIE) or interestcoverageratio isameasureofacompany's
ULTIMATE
abilitytohonoritsdebtpayments.ItmaybecalculatedaseitherEBITorEBITDA
dividedbythetotalinterestpayable.
TimeInterestEarnedRatio=EBIT/Interest
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InterestCharges=traditionally"charges"referstointerestexpensefoundontheincome
statement.
3.11ANALYZINGPROFITABILITY
Anyratiothatmeasuresacompany'sabilitytogeneratecashflowrelativetosomemetric,
oftentheamountinvestedinthecompany.Profitabilityratiosareusefulinfundamental
analysis which investigates the financial health of companies. An example of a
profitability ratio is the return on investment which is the amount of revenue an
investment generates as a percentage of the amount of capital invested over a given
periodoftime.Otherexamplesincludereturnonsales,returnonequity,andreturnon
commonstockequity.
3.11.1OperatingProfitMargin
Inbusiness,operatingmarginalsoknownasoperatingincomemargin,operating
profitmarginandreturnonsales(ROS)istheratioofoperatingincome("operating
profit"intheUK)dividedbynetsales,usuallypresentedinpercent.
OperatingProfitMargin=OperatingProfit/Sales
Netprofitmeasurestheprofitabilityofventuresafteraccountingforallcosts.
Returnonsales(ROS)isnetprofitasapercentageofsalesrevenue.ROSisanindicator
ofprofitabilityandisoftenusedtocomparetheprofitabilityofcompaniesandindustries
ofdifferingsizes.Significantly,ROSdoesnotaccountforthecapital(investment)used
togeneratetheprofit.
3.11.2ProfitMargin
Profitmargin,netmargin,netprofitmarginornetprofitratioallrefertoameasure
ofprofitability.Itiscalculatedbyfindingthenetprofitasapercentageoftherevenue.
NetprofitMargin=NetprofitafterTaxes/Sales
Where,NetProfit=RevenueCost
3.11.3ReturnonAssets
Thereturnonassets(ROA)percentageshowshowprofitableacompany'sassetsarein
generatingrevenue.
ULTIMATE
ROAcanbecomputedas:
ReturnonAsset(ROA)=NetprofitafterTaxes/TotalAssets
Thisnumbertellsyouwhatthecompanycandowithwhatithas,i.e.howmanydollars
ofearningstheyderivefromeachdollarofassetstheycontrol.It'sausefulnumberfor
comparing competing companies inthe same industry. The number will varywidely
acrossdifferentindustries.Returnonassetsgivesanindicationofthecapitalintensityof
thecompany,whichwilldependontheindustry;companiesthatrequirelargeinitial
investmentswillgenerallyhavelowerreturnonassets.
3.11.4ReturnonEquity
Return on equity (ROE) measures the rate of return on the ownership interest
(shareholders'equity)ofthecommonstockowners.Itmeasuresafirm'sefficiencyat
generatingprofitsfromeveryunitofshareholders'equity(alsoknownasnetassetsor
assets minus liabilities). ROE shows how well a company uses investment funds to
generateearningsgrowth.ROEsbetween15%and20%aregenerallyconsideredgood.
ReturnonEquity(ROE)=NetprofitafterTaxes/StockholdersEquity
3.11.5EarningsperShare
Earningspershare (EPS)istheamountofearningspereachoutstandingshareofa
company'sstock.
In the United States, the Financial Accounting Standards Board (FASB) requires
companies' income statements to report EPS for each of the major categories of the
incomestatement:continuingoperations,discontinuedoperations,extraordinaryitems,
andnetincome.
EPS=NetIncome/No.ofShareOutstanding
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Chapter:Four
Findings
ULTIMATE
4.1FINANCIALHIGHLIGHTS
FinancialPosition
Amountin000
Particulars
2015
2014
2013
2012
2011
Cash&BankBalances
5319
3,480
3,335
4,932
1,763
Investments
4736
2,796
1,952
1,472
710
Moneyatcallandshortnotice
388
239
340
330
450
13,063
12,250
11,334
8,266
6,256
FixedAssets
183
165
92
48
38
OtherAssets
814
614
337
529
210
TotalAssets
24,504
19,544
17,390
15,577
9,427
Borrowings
51
155
100
19,736
15,666
12,246
7,676
6,871
OtherLiabilities
1389
1,394
1,085
732
629
TotalLiabilities
21,231
17,216
13,431
8,409
7,500
3273
2,328
2,146
1,018
1,019
Shareholder'sequity
24,504
19,544
15,577
9,427
8,519
CreditDepositRatio(%)
66.19%
78.19%
67.50%
81.50%
84.19%
Particulars
2015
2014
2013
2012
2011
OperatingIncome
789
886
900
617
489
OperatingExpense
661
585
401
292
201
Provision)
128
301
499
325
288
Provision
47
123
274
162
136
ProfitBeforeTax
81
176
224
162
151
ProfitAfterTax
17
101
69
63
41
Loans&Advances
TotalDeposit
Shareholder'sEquity
TotalLiabilities&
Profitability
Operatingprofit(Before
ULTIMATE
ReturnonInvestment(ROI)
5.17%
11.41%
5.84%
12.09%
10.00%
(%)
ReturnonAssets(ROA)(%)
0.07%
0.52%
0.40%
0.40%
0.43%
ReturnonEquity(ROE)(%)
0.53%
4.34%
3.11%
2.94%
4.03%
13.56%
12.02%
9.47%
9.92%
8.22%
2015
2014
2013
2012
2011
AuthorizedCapital
10,000
10,000
10,000
2,000
2,000
Paidupcapital
1,988
1,988
1,988
1,988
920
ShareCapitalBCILtd.
39
39
39
39
39
StatutoryReserve
195
178
143
98
65
21
17
13
11
11
108
95
29
(26)
TotalShareholder'sequity
3,273
2,325
2,215
2,143
1,016
TotalRiskWeightedAssets
19693
18,023
14,914
13,537
5,722
CoreCapital
2542
2,310
2,204
2,134
1,002
SupplementaryCapital
152
135
135
103
78
TotalCapital
2695
2,445
2,339
2,237
1,080
13.68%
13.57%
15.68%
16.53%
18.87%
Particulars
2015
2014
2013
2012
2011
NetrevenueperEmployees
3.58
1.30
1.32
1.12
1.08
0.22
0.44
0.73
0.59
0.63
0.13
0.26
0.33
0.29
0.33
CostofFund(%)
Equitymeasures
Particulars
OtherReserve
RevaluationReserveforHTM
Securities
ExchangeEqualization
Account
Surplus/DeficientinProfit&
LossAccount
CapitalAdequacyRatio(%)
Managementefficiency
OperatingProfitper
Employees
NetProfitbeforeTaxper
Employees
ULTIMATE
CosttoIncomeRatio
ULTIMATE
82%
66%
45%
47%
41%
AssetQuality
Particulars
2015
2014
2013
2012
2011
Loans&Advances
13064
12,250
11,334
8,266
6,256
ClassifiedLoans
1918
1,552
997
1,068
1,485
14.68%
12.67%
8.80%
12.92%
23.74%
Loan
121
106
103
89
59
ProvisionforClassifiedLoan
40
438
460
367
278
Particulars
2015
2014
2013
2012
2011
MarketPricePerShare
100
100
100
100
100
19,887,4
19,887,4
19,887,4
19,887,4
9,200,00
82
82
82
82
2015
2014
2013
2012
2011
No.ofBranches
42
38
30
25
25
HumanCapital(nos)
721
682
680
550
454
ClassifiedLoanstoLoans&
Advances(%)
ProvisionforUnclassified
ShareInformation
NumberofOutstandingShare
DistributionNetwork
Particulars
ULTIMATE
Chapter:Five
PerformanceAnalysis
ULTIMATE
5.1 RATIOANALYSIS
5.2 CAPITAL
5.1.1PaidupCapital
Paidupcapitalismoneythatacompanyhasreceivedfromthesaleofitsshares,
andrepresentsmoneythatisnotborrowed.
Takain000
Year
PaidUp
Capital
2011
2012
2013
2014
2015
920
1989
1989
1989
1989
Table:PaidUpCapital
Source:AnnualReportofUIT(20112015)
Graphicalpresentation:
Paid-up-Capital
1989
1989
1989
1989
2012
2013
2014
2015
920
2011
Interpretation:
Fromtheanalysis,ithasseenthatthepaidupin2012itincreasedto1989Thosund
whichisinahorizontaltrendtill2015. It indicates companys owners equity were
increasingwhichmayreducetheirinsolvencyrisk.
5.1.2 Shareholders Equity:
Shareholderequitycomesfromtwomainsources.Thefirstandoriginalsourceisthe
money that was originally invested in the company, along with any additional
investmentmadethereafter.Thesecondsourcecomesfromretainedearningswhich
thecompanyisabletoaccumulateovertimethoughisoperationsinmostcases;the
retainedearningsportionisthelargestcomponent.
ShareholdersEquity=TotalAssetsTotalLiabilitiesOr
ULTIMATE
Shareholdersequity=Sharecapital+RetainedearningsTreasurybills
Takain000
Year
2011
2012
2013
2014
2015
Shareholders
Equity
1019
2146
2217
2328
3273
Table:Shareholdersequity
GraphicalPresentation:
Shareholder's Equity
3273
2146
2217
2328
2012
2013
2014
1019
2011
2015
Interpretation:
Fromtheanalysisithasseenthattheirshareholdersequityisalsoincreasingtrend.As,
shareholdersequityisincreasingtrenditconveypositivesignforcompanyssolvency.In
2015shareholderequitystands3273whereasin2014equitywas2328.
5.2LIQUIDITYRATIOS
Liquidityratio,expressesacompany'sabilitytorepayshorttermcreditorsoutofitstotal
cash.Theliquidityratioistheresultofdividingthetotalcashbyshorttermborrowings.It
shows the number of times shortterm liabilities are covered by cash. If the value is
greaterthan1.00,itmeansfullycovered.
5.2.1CurrentRatio:
The current ratio, one of the most commonly cited financial ratios, measures the firms
abilitytomeetitsshorttermobligations.Thehigherthecurrentratio,thebetterthe
ULTIMATE
liquiditypositionofthefirm.Itisexpressedas:
CurrentRatio=CurrentAsset/CurrentLiabilities
Year
Current
Ratio
2011
2012
2013
2014
2015
1.02
1.21
1.16
1.14
1.18
Table:CurrentRatio
CurrentoRati
Current Ratio
1.25
1.20
1.21
1.16
1.15
1.10
1.05
1.00
1.14
1.18
1.02
0.95
0.90
2011
2012
201
3
Yea
r
2014
2015
Figure:CurrentRatio
Interpretation:
UITs current ratios were satisfactory last five years because it maintains more 1 tk as
currentassetsagainsttk1currentliabilities,whereassoftwareindustrynormally
maintains1:1currentratio.
5.2.2NetWorkingCapital:
The current ratio, one of the most commonly cited financial ratios, measures the firms
abilitytomeetitsshorttermobligations.Thehigherthecurrentratio,thebetterthe
liquiditypositionofthefirm.Itisexpressedas:
NetWorkingCapital=CurrentAssetCurrentLiabilities
Year
ULTIMATE
2011
2012
2013
2014
2015
NetWorking
109
2277
2022
1956
2001
Capital
Table:NetWorkingCapital
NetWorkingCapital
Net Working Capital

2500
2277
2001
2000
1500
2022
1956
1000
500
109
0
2011
2012
2013
2014
2015
Year
Figure:NetWorkingCapital
Interpretation:
In2011,thenetworkingcapitalofUITwasfallto109from2714.Butin2012it
drasticallyincreasedto2277.Afterthatitconsecutivelyfallstill2015however,the
companyisabletomeetupitscurrentobligations.
5.3ANALYZINGACTIVITYRATIO
5.3.1CostIncomeRatio:
The costtoincome ratio shows the efficiency of a firm in minimizing costs while
increasingprofits.Thelowerthecosttoincomeratio,themoreefficientthefirmis
running.Thehighertheratio,thelessefficientmanagementisatreducingcosts.
CostIncomeRatio=TotalOperatingExpenses/TotalOperatingIncome
Year
2011
2012
CostIncome
ULTIMATE
2013
2014
2015
41%
Ratio
47%
45%
66%
82%
Table:CostIncomeRatio
CostIncomeRatio
Cost Income Ratio

100%
80%
66%
60%
40%
47%
41%
82%
45%
20%
0%
2011
201
3
Yea
r
2012
2014
2015
Figure:CostIncomeRatio
Interpretation:
From2011to2013theoperatingefficiencyoftheUITwasingoodpositionbecausethey
minimizedtheiroperatingcost.So,in2015comparewithpreviousyear,itsoperating
efficiencywasworsethaneveronlybecauseofunfavorableeconomicconditionleadsthe
companytowardslowerincome.
5.3.2TotalAssetTurnoverRatio:
Thetotalassetturnoverindicatestheefficiencywithwhichthefirmisabletouseallits
assetstogeneratesales.
TotalAssetTurnover=OperatingIncome/TotalAsset
Year
2011
2012
2013
2014
2015
TotalAsset
5.20%
3.97%
5.18%
4.53%
3.22%
Turnover
Table:TotalAssetTurnover
ULTIMATE
Total Asset
Turnover
AseetTotal
Turnover
10.00%
5.00%
5.20%
3.97%
5.18%
4.53%
3.22%
0.00%
Year
Figure:TotalAssetTurnovers
Interpretation:
Fromtheanalysis,ithasseenthatfrom2011to2015UITtotalassetturnoverwere
fluctuatingtrendbutin2015comparewithanyotheryearitwasinadecliningtrend
whichisnotgoodsign.Thathappenbecauseofunstablepoliticalconditionprivate
sectorgrowthwasinnegativetrend,companyhashugeidlemoneywhichinvestedin
lowyieldingoptionsandabigamountofloansandadvancesgonebadbecauseof
unstablepoliticalcondition.
5.4ANALYZINGDEBTRATIO
5.4.1DebtRatio:
The debt ratio measures the preparation of total assets provided by the firms creditors.
Debtratio=TotalLiabilities/TotalAssets
Year
2011
2012
2013
2014
2015
DebtRatio
89%
86%
87%
88%
87%
Table13:DebtRatio
Debt Ratio
DRatio
90%
89%
88%
87%
ULTIMATE
89%
88%
87%
ebt
86%
85%
84%
86%
2011
2012
87%
201
3
Yea
r
2014
2015
Figure:Debtratio
Interpretation:
Thisgraphshowsthat,in2012thedebtratiowasdecreasedin2012itwashappened
becauseofnewcapitalinjectionfromshareholders..Afterthatin2012itgrewgradually
asthedepositrisewhichisthecommonnatureofthebusiness.Lowertheratio,itisless
risky.Sinceitisinaincreasingtrendwhichisnotagoodsignforacompany.
ULTIMATE
5.4.2TimeInterestEarnedRatio:
Thetimesinterestearnedratio,sometimescalledtheinterestcoverageratio,measures
the firms ability to make contractual interest payments.
TimeInterestEarnedRatio=EarningsbeforeInterestandTaxes/Interest
Year
TimeInterest
EarnedRatio
2011
2012
2013
2014
2015
1.89
1.99
1.99
1.69
1.45
Table:TimeInterestEarnedRatio
Earned RatioTime Interest
Time Interest Earned Ratio

2.50
2.00
1.50
1.00
0.50
-
1.89
1.99
1.99
1.69
1.45
2011
2012
2015
2013
2014
Year
Figure:TimeInterestEarnedRatio
Interpretation:
Fromtheabove analysis time interest earned ratio on UITs was satisfying. In 2012and2013
earnedratiowasequalbutin2014itfallsthanlastyears.In2015itwastheworstcaseand
thereasondescribedabove.SoUITshouldenhanceitsearningsbyminimizingitsoperating
costsinordertogetadequateearningstosatisfyinginterestobligations.
ULTIMATE
ULTIMATE
5.4.3EquityCapitalRatio:
The ratio shows the position of the Companys owners equity by measuring the portionof
totalassetfinancedbytheshareholdersinvestedfundsanditiscalculatedasfollows:
EquityCapitalRatio= Total Shareholders Equity / Total Assets
Year
2011
2012
2013
2014
2015
EquityCapital
10.81%
13.78%
12.75%
11.91%
13.36%
Ratio
Table:14EquityCapitalRatios
Equity Capital Ratio
EquityCapitalRatio
15.00
%
13.78
%
12.75
%
10.81
%
10.00
%
11.91% 13.36%
5.00%
0.00%
2011
2012
201
3
Ye
ar
2014
2015
Figure:EquityCapitalRatio
Interpretation:
Thisgraphshowsthatequitycapitalratioin2012itincreasedto13.78%,laterfrom2012
to2013itwasallaboutinadecreasingmood.Butin2015duetocapitalinjectionbythe
shareholderstheratioincreased.Sotheequitycapitalratioofthecompanyshouldbetterin
futureandthatneedtobeinternalcapitalgeneration.
5.5ANALYZINGPROFITABILITYRATIO
5.5.1NetProfitMargin:
Thenetprofitmarginmeasuresthepercentageofeachsalesdollarremainingafterall
expenses,includingtaxes,havededucted.
NetProfitMargin=Netprofitaftertax/OperatingIncome
Year
2011
2012
2013
2014
2015
NetProfit
8.43%
10.25%
7.76%
11.42%
2.22%
Margin
Table8:NetProfitMargin
Net Profit
Margin
Net ProfitMargin
12.00%
11.42
%
10.25
%
10.00%
8.00%
6.00%
8.43%
7.76%
4.00%
2.00%
2.22%
0.00%
2011
2012
2013
Year
201
4
2015
Figure8:NetProfitMargin
Interprtation:
Fromtheanalysis,ithasseenthatamongfiveyearsin2011to2015the companys net
profitmarginwasinfluctuatingmood.Butin2014itachievedhighthanlastthreeyears.
OveralltheirprofitmarginswereSatisfactory.
5.5.2ReturnonAsset(ROA):
The return on asset (ROA), which is often called the firms return on total assets,
measurestheoveralleffectivenessofmanagementingeneratingprofitswithits
availableassets.Thehighertheratioisbetter
ReturnonAsset(ROA)=NetProfitaftertax/TotalAsset
Year
2011
2012
2013
2014
2015
Returnon
0.44%
0.41%
0.40%
0.52%
0.07%
Asset
Table9:ReturnonAsset
Return on Asset
0.60%
ROA
0.52
%
0.44
%
0.50%
0.40%
0.40
%
0.41%
0.30%
0.20%
0.10%
0.00%
0.07%
2011
2012
2013 Year 2014
2015
Figure:ReturnsonAsset
Interpretation:
Fromtheanalysis,itdemonstratesthatin2014itgoesupsurprisinglyto0.52%.In2014the
companyhasearnmoreprofitcomparewiththepreviousyear.Asitcomestotheearnings
2015wasnottheyearforthecompany.Sothecompanyismanagingitsinvestmentinasset
by highly efficiently as well as effectively to generate maximum profit but unfavorable
conditionleadsittocompanyofdisaster.
5.5.3ReturnonEquity(ROE):
The return on equity measures the return earned on the owners (both preferred and common
stockholders) investment. Generally the higher the return, the better off the owners.
ReturnonEquity=NetProfitafterTax/Shareholdersequity
Year
Returnon
Equity
2011
2012
2013
2014
2015
4.05%
2.95%
3.15%
4.35%
0.53%
Table10:ReturnonEquity
Return on Equity
ROE
5.00%
4.50%
4.35
%
4.05
%
4.00%
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
3.15
%
2.95%
0.00%
2011
201
3
Ye
ar
2012
0.53%
2014
2015
Figure11:ReturnsonEquity
Interpretation:
Inreturnonequity2012itfalldownto2.95%thanlastyear.Afterthatfrom2012to
2014returnonequitywasinupwardtrendwhichistremendousperformanceofthe
company.Sothemanagementisworkinghardtoincreasethereturnassociatedwith
equity. But in 2015 the return has double negative effect because the capital has
increasedontheotherhandtheearningwasdecreasedsothereturnonequityshows
worsteverresultin2015.
5.5.4EarningsperShare:
The firms Earning per share (EPS) are generally of interest to present or prospective
stockholdersandmanagement.TheEarningpersharerepresentthenumberofdollars
earnedonbehalfofeachoutstandingshareofcommonstock.Theearningspershareis
calculatedasfollows
EarningsperShare=Earningsavailableforcommonstockholder/Noofshares
ofcommonstockoutstanding
Taka
Year
2011
2012
2013
2014
2015
EPS
4.49
3.18
3.51
5.09
0.88
Earnings Per Share
ShareEarnings per
6.00
5.00
5.09
4.49
4.00
3.00
3.51
3.18
2.00
1.00
0.00
2011
2012
2013
Year
2014
0.8
8
2015
Figure12:EarningsperShare
Interpretation:
Thegraphshowthat,in2014earnings per share of UITswashighestthaneverbut
liketheROEitshowstheworstreturnasthedoublenegativeeffectmentionedin
ROEinterpretation.
5.6ANALYZINGMARKETRATIO
5.6.1PriceEarningsRatio:
The price or earning (P/E) ratio is commonly used to assess the owners appraisal of
sharevalue.TheP/Erepresentstheamountinvestorsarewillingtopayforeach
dollar of the firms earnings. The higher the P/E ratio, the greater the investor
confidence in the firms future. The price Earning (P/E) ratio is calculated as
follows:
PriceEarningsRatio=Marketpricepershareofcommonstock/Earningpershare
Year
2011
2012
2013
2014
2015
PriceEarnings
22
31
28
20
114
Ratio
Table12:PriceEarningsRatio
PriceEarningsRatio
Price Earnings Ratio

120
100
80
114
60
40
20
22
31
0
2011
2012
28
201
3
Yea
r
20
2014
2015
Figure13:PriceEarningsRatio
Interpretation:
Heresharepriceisconstantasthecompanyisnotenlistedinthecapitalmarketbutthe
incomeorearningsfluctuates.Sotheincomeistheonlyfactortochangetheratio
whichweseethatin2014EPSishighestsothePEratioislowestontheotherhandin
2015theEPSislowestsothePEratioishighest.
Chapter:Six
MajorDetermine,
Recommendation&Conclusion
6.1MAJORDETERMINE:
a.Capital:
It has seen that the in UITs Paidupcapitalwasincreasing.Itindicates
companyowners capital was increasing, so it may reduce the companys

insolvency risk.
b.Shareholders Equity:
Theshareholdersequityisalsoincreasingtrend.As,shareholdersequity
isincreasingtrenditconveypositivesignforcompanysolvency.
c. LiquidityRatios:
FromthecurrentratioanalysisoflastfiveyearsithasseenthatUITmaintains
satisfactoryrangeofcapitalassetsinordertosmoothoperationsbypayingtheir
shorttermobligations.
ThenetworkingcapitalofUITissurprisinglyincreasedin2012thanlasttwo
years,afterthatitisindecreasingmood.However,thecompanyisabletomeet
itscurrentobligations.
d.ActivityRatios:
We know that cost income ratio measures the operating efficiency of the
company.Fromtheanalysis,theoperatingefficiencyoftheUITwasinnotgood
position from 2011 to 2013, because they were not able to minimize their
operatingcost.Butin2014itdecreasetheiroperatingcostthatisgoodsign
againin2015operatingcostseemsincreaseastheearningsdeclinedcompared
topreviousyear.
e. DebtRatios:
Thedebtratiowasincreasingyearbyyearafterfallin2012thanlastyear.Debt
ratio measures the proportion of total assets provides by the firms creditors. The
companys debt ratio was in increasing trend from 2012 which is not good sign for a
company.
From the above analysis time interest earned ratio on UITs was satisfying.
Because,itwasinincreasingtrendfrom2011to2013whereasin2012and2013it
wassame.Butlastyearitfallthanprecedingyears.So,UITshouldenhanceits
earningsbyminimizingitsoperatingcoststogetadequateearningstosatisfying
interestobligations.
f. ProfitabilityRatios:
Fromtheanalysis,ithasseenthatamongfiveyearsin2011UITnetprofitmargin
wasinfluctuatingmood.Butin2014itsurprisinglyincreased11.42%thanlastyear
butduetounfavorableeconomicandpoliticalconditionitcamedownto2.22%.
Returnonassetwasdecreasingtrendexcepting2014comparetoprecedingyears
andthehighestvaluecanbeobservedin2014whichissatisfactory.Sothecompany
ismanagingitsinvestmentinasseteffectivelyaswellasefficientlytogenerate
maximumprofit.Butagaincompanyfallintodifficulttimein2015.
ThegraphofEPSofUITisincreasingconsecutivelyyearbyyearexcept2015.It
indicatesaverygoodsign.Managementshouldfocusonmaintainingthisgrowth
trendtorecoverthemeltdowninlastyear.
g.MarketRatios:
Price earnings ratio of UIT is decreasing from 2012 to 2014 consecutively
decreasedwhichisgoodpositionbutin2015itgoneupdrasticallywhichisbecause
oflowerEPSandstaticpricewhichisnotagoodsign.Itindicateslack of the
shareholders confidence on UITs performance and prospect.
6.2RECOMMENDATIONS:
SomerecommendationsbasedonthefinancialperformanceofUltimateITSolutions
financial performance are given below
PaidupcapitalofUITwereincreasingtrendandtheyshouldkeepfocusto
increasecapitalinordertomaintaintheirsolvency.
AswehaveseenthatCurrentRatioofUITissatisfactoryrange.So,UITshould
maintainthistrendforsmoothlyoperateoftheirbusiness.
TheCostincomeratiooftheUITwasnotingoodpositionbecausetheywere
notabletominimizetheiroperatingcost.Theyshouldminimizetheiroperating
costaswellmaximizetheoperatingincome.
As,TotalAssetTurnovershowstheefficiencyofthecompany.Butinlast5
yearstotalassetturnoverwerenotsteady.SoUITshouldalsotrytoimprove
theirTotalassetturnover.
Debt Ratio of the UIT was notsatisfactory range because it was increasing
trend.Sotheyshouldtrytodecreaseofthisratio.
As, UITs Time interest ratio was satisfactory. But they should increase their
EBIT or reduces the debt capital in order to smoothly satisfy the interest
obligations.
UITshouldtrytoincreasenetprofitmarginforincreasingoperating
efficiency.
The UITs ROA was deceasing mood excepting year of 2014 and in worst
positionin2015. So the UITs should manage its investment in asset by proper

utilizationtogeneratetheirprofit.
The UITs ROE was extremely good until2014butitturneddownin2015so
themanagementshouldworkhardtoincreasethereturnassociatedwithequity.
EPSincreasingupto2014thatindicatesverygoodsignforUIT,whichcan
attractinvestorbutitgonedown2015whichandthereasonstatedearlierbut
managementshouldconcentratein2016tostayfootingoodground.Toattract
theinvestorUITshouldtrymoretoincreaseitsEPS.
DecreasingmoodofPEratioisnotgoodsignforUItbutatthesametimetoohighPEalsoa
matterofconcern. So, company should try to increase the PE ratio to build the confidence of
UITs shareholdersbutkeepitsteady.
6.3CONCLUSION
Ultimate IT Solution is one of the leading Software Company in our country. In all
economic condition of our country Ultimate IT Solution has been working with great
confidence and competing tremendously with local Software Company along with the
multinational Software Company. Ultimate IT Solution always tried its level best to
perform financially well. In spite of trying to do well in some aspects Ultimate IT
Solution faced some financial problems from time to time. Fighting with all these
problems and competing with other Companys every moment the Company is trying to
do better to best. If this thing continues we hope that Ultimate IT Solution will develop
even more in the future.
The total period while we were visiting Ultimate IT Solution was very pleasant to us. It
will help us a lot in future life. Without the practical knowledge it is quite impossible to
develop quality software. This industrial tour has paved the way to look into the
development environment and marketplace. The market does not depend on only
developing quality application. It is a lot more things than those. First we have to
specify what we have to develop, for whom, why and how. Understanding the users
mind and their requirements a software engineer has to think about new software. They
gave a lot of good advice that we will take with us as we prepare to enter the workforce
after graduation.
The age is totally dependent on modern information technologies. Nobody can escape
away from it. Our one step to invent new technology can take the whole world a step
forward.
References
i. Books
nd
C.R.Kotheri,2 Edition, Research Methodology, 2011, Wishwa Prakashan,

Calcutta,India.
th
LawrenceJ.Gitman,12 edition, Principles of Managerial Finance, 2010

2011,PearsonPTe.Ltd.Singapore
ii. Internet
http://www.ultimateitbd.com
http://developer.android.com
http://www.sei.cmu.edu
http://www.basis.org.bd
http://wikipedia.org
WebSite:www.investopedia.com
WebSite:www.bb.org.bd

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Letter of Transmittal

IT SOLUTION BANGLADESH Page 1

Premier University, Chittagong

TO WHOM IT MAY CONCERN

IT SOLUTION BANGLADESH Page 2

A Financial Statement Analysis cannot be completed without significant help from

IT SOLUTION BANGLADESH Page 3

IT SOLUTION BANGLADESH Page 4

Chapter: 1 (Background of the Report)

Objectives of the Report

Scope of the Report

Limitations of the Report

Chapter: 2 (The Organizational information)

An Overview of DataSoft Systems Bangladesh

Vision, Values and Mission

Quality Management Framework (QMF)

DataSofts Achievement: CMMI Level 3 & ISO

IT SOLUTION BANGLADESH Page 5

Who They Serve

IT SOLUTION BANGLADESH Page 6

Chapter: 3 Theoritical Aspact

Financial Performance Analysis

Method ofAnalysis and Interpretation

Limitations of Financial Statement Analysis

Financial Statement Analysis

Group of Financial Ratios

Comparative Balance Sheet

Common Size Balance Sheet

Net working Capital

IT SOLUTION BANGLADESH Page 7

Debtor Collection Period

Fixed Asset Turnover

Times Interest Earned

Earnings Per Share

Chapther: 4 Body of the report

Chapther: 5 Problem & Suggestion(Financial Performance

IT SOLUTION BANGLADESH Page 8

Cost Income Ratio

Total Assets Turnover

Time Interest Earned Ratio

Return on Assets (ROA)

Return on Equity (ROE)

Earnings Per Share

Price Earnings Ratio

Chapther:6 Major Findings, Recommendations &

IT SOLUTION BANGLADESH Page 9

1.4.2 Secondary Sources:

2.1 An Overview of Ultimate IT Solution.

2.4 Quality Achievement

2.5 Who They Serve

2.6 Business Area

2.7 Functional Domains

Takes too long,

Description of the products

In Benipack software Gratuity and Provident accounts of the employees can

DS Retail is a combination Point of Sale (POS) and Back Office Control

DS Dining is a completely integrated chain restaurant management system.

Microfin360 is A Complete Solution for Micro-Finance Organizations.

Microfin360 Solution includes Management Information System (MIS),

2.8.1.2 E-commerce Solution

Some of Ultimate IT Solutions MIS Solutions are given bellow:

Name of Client / Description of the Project Project

Project: Management Implement and maintain an integrated Management Information

QueensDevelopment of an Integrated Solution for Queens Apparel Ltd. of