Internship report

On
Financial Performance Analysis of Nanotech Bd
 University OF Asia Pacific
Internship Report on
Financial Performance Analysis of Nanotech Bd

Submitted to:
Imroz Mahmud
Assistant Professor
Department of Business Administration
University OF Asia Pacific

Submitted by:
Foyez Ahmed
ID: 16202005
Department of Business Administration
University OF Asia Pacific

Submission Date: 10/04/2021

 Approval Certificate
This certifies that Md. Foyez Ahmed, ID: 16202005, completed the Internship Program
and submitted a report titled "Financial Performance Analysis of Nanotech Bd" under
my supervision as a partial prerequisite for BBA completion. He finished his internship
report under my guidance. He put in his utmost effort to achieve this. I believe it will
assist him in developing a career in the near future.

I wish him every success in his career.

…………………………………………
Imroz Mahmud
Assistant Professor
Department of Business Administration
University OF Asia Pacific

i
 Student’s Declaration
I, Foyez Ahmed, a student in the University of Asia Pacific's BBA program, am pleased to
announce that the Internship Report on " Financial Performance Analysis of Nanotech Bd" has
been prepared solely for academic purposes.

I further promise that the study outlined in this short-term role is original and that, for any degree
or grant or other reason, no part or entire of the document has been submitted to any other
college or foundation.

The work I've shown does not violate on any copyright. As a result, I accept the University's
repayment of any misfortune or harm resulting from my failure to do so, with no responsibilities
on my part.

ii
 Letter of Transmittal

10 April 2021
Imroz Mahmud
Assistant Professor
Department of Business Administration
University OF Asia Pacific
Subject: Submission of an internship report.

Dear Sir,
With due respect, I'd like to inform you that it gives me great pleasure to present the report on
Financial Performance Analysis of Nanotech Bd as a BBA program requirement. While working
on the paper, I've gathered a lot of knowledge about Nanotech Bd

Finally, I would be happy to answer any question related to this report.

Sincerely Yours,

………………………
Foyez Ahmed
ID: 16202005
Department of Business Administration
University OF Asia Pacific

iii
 Acknowledgment
First and foremost, I want to thank Almighty Allah for providing me with good health so that I
could finish this report on time. Then I'd like to thank my supervisor, Imroz Mahmud, for his
continuous support and guidance during the writing of this article. It took a few months to put
together this study, and it required the help of a few people. Without their assistance and
cooperation, I would not have been able to complete this study.

Mr. Arif Hossain (Manager of Nanotech Bd), Mr. Neepen Chondro Ray (responsible for sales
and operations), and Mr. Biplob (responsible for customer service) deserve my gratitude for
their continued cooperation and time.

Finally, I'd like to thank Nanotech Bd's stakeholders for their patience and support during the
preparation of this paper. Their unwavering support has inspired me to work with zeal.

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 Executive Summary
The aim of this report is to examine NanoTech Bd's financial performance. It is one of
Bangladesh's most reliable and well-known security surveillance technology and computer
products firms. Since its founding in 2012, the organization has worked to fulfill the needs and
aspirations of consumers by distributing high-quality goods while ensuring a high level of
customer satisfaction.
This study is divided into five parts. The first chapter of this study covered the introduction. The
first chapter discusses the study's introduction, background, origin, objective, methodology, and
limitations.

In the second chapter over view of NanoTech Bd has been discussed.  This chapter contains
information about the company's history, mission, vision, values, products, services, and
operations. The third chapter covers theoretical knowledge, financial tools, calculation methods,
and financial performance application.

The fourth chapter, which contains a financial results review, is a very important section of the
study. It contains a ratio analysis (Liquidity, Activity, profitability). The outcome of the study is
quite satisfactory. And based on the study, came up with some conclusions.

Finally, in the last four to five chapters, several recommendations are made for financial
performance improvements. This chapter also contains all of the findings.

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Table of Contents
Approval Certificate...................................................................................................................................i
Student’s Declaration...................................................................................................................................ii
Letter of Transmittal................................................................................................................................iii
Acknowledgment.......................................................................................................................................iv
Executive Summary...................................................................................................................................v
Chapter-1....................................................................................................................................................1
Introduction................................................................................................................................................1
1.1 Background of the Study.................................................................................................................2
1.2 Objective of the Study...........................................................................................................................2
1.2.1 Main Objective...............................................................................................................................2
1.2.2 The other objectives of this study are.............................................................................................2
1.3 Scope of the Study.................................................................................................................................2
1.4 Limitation of the Study..........................................................................................................................2
Chapter-2....................................................................................................................................................3
Organization Overview...............................................................................................................................3
2.1 About NanoTech BD.............................................................................................................................4
2.2 Mission and Vision of Messers Krishi Samvar......................................................................................4
2.3 Product & Service Description..............................................................................................................4
Chapter-3....................................................................................................................................................6
Internship Duties and responsibilities........................................................................................................6
3.1 Description of the Job:...........................................................................................................................7
3.2 Job Responsibility’s:..............................................................................................................................7
3.3 Learning outcome..................................................................................................................................7
Chapter-4....................................................................................................................................................8
Methodology..............................................................................................................................................8
4.1 Report Methodology..............................................................................................................................9
4.2 Data Collection Procedure.....................................................................................................................9
4.3 Data Analysis Procedure........................................................................................................................9
4.4 Data Collection......................................................................................................................................9
4.5 Sources of Data.....................................................................................................................................9
Chapter-5..................................................................................................................................................10
Financial Performance Analysis................................................................................................................10
4.3 Financial Ratio Analysis......................................................................................................................11
4.3.1 Liquidity Ratio..............................................................................................................................11
4.3.1.1 Current Ratio.........................................................................................................................12
4.3.1.3 Cash Ratio.............................................................................................................................14
4.3.2 Efficiency and Activity Ratio.......................................................................................................15
4.3.2.1 Total Asset Turnover Ratio....................................................................................................15
4.3.2.2 Fixed Asset Turnover Ratio...................................................................................................16
4.3.2.3 Current Asset Turnover Ratio................................................................................................17
4.3.2.4 Equity Turnover Ratio...........................................................................................................18
4.3.3 Profitability Ratio.........................................................................................................................19
4.3.3.1 Gross profit margin................................................................................................................19
4.3.3.2 Operating profit margin.........................................................................................................20
4.3.3.3 Net profit margin...................................................................................................................21
4.3.3.4 Return on assets (ROA)..........................................................................................................22
4.3.3. Return on Equity (ROE)............................................................................................................23
Chapter-5..................................................................................................................................................24
Findings, Recommendation and Conclusion..............................................................................................24
5.1 Findings of the study:..........................................................................................................................25
5.2 Recommendations...............................................................................................................................26
Conclusion.................................................................................................................................................27
References................................................................................................................................................28

Table of Figure
FIGURE 1 CURRENT RATIO OF NENOTECH BD........................................................................................................................12
FIGURE 2 QUICK RATIO OF NANOTECH BD............................................................................................................................13
FIGURE 3 CASH RATIO OF NANOTECH BD.............................................................................................................................14
FIGURE 4 TOTAL ASSET TURNOVER RATIO OF NANOTECH BD...................................................................................................15
FIGURE 5 FIXED ASSET TURNOVER RATIO OF NANOTECH BD....................................................................................................16
FIGURE 6 CURRENT ASSET TURNOVER RATIO OF NANOTECH BD...............................................................................................17
FIGURE 7 EQUITY TURNOVER RATIO OF NANOTECHBD...........................................................................................................18
FIGURE 8 GROSS PROFIT MARGIN OF NANOTECHBD..............................................................................................................19
FIGURE 9 OPERATING PROFIT MARGIN OF NANOTECH BD........................................................................................................20
FIGURE 10 NET PROFIT MARGIN.........................................................................................................................................21
FIGURE 11 RETURN ON ASSET (ROA)...................................................................................................................................22
FIGURE 12 RETURN ON EQUITY (ROE).................................................................................................................................23
Chapter-1
Introduction

1
1.1 Background of the Study
It is mandatory to apply the knowledge gained from any academic course of study in a practical
setting. Because a lot of theoretical knowledge would be useless if it is not put into practice. As a
result, a good student must apply his or her experience in order to gain some value from his or
her theoretical knowledge to make it more fruitful. Internships may be used to make such an
application.
In this report I am going to discuss the financial performance of Messers Krishi Samvar.

1.2 Objective of the Study

1.2.1 Main Objective
The study's key purpose is to analyze Messers Krishi Samvar's financial performance.

1.2.2 The other objectives of this study are

 To analyze profitability, liquidity and financial solvency of NanoTech Bd using ratio
analysis tools;
 To identify the problems related to the financial performance of NanoTech Bd;
 To make some recommendations based on problems to improve the financial
performance of NanoTech Bd

1.3 Scope of the Study

The study's major part is to know about the NanoTech Bd 's financial performance, so it includes
financial statements from NanoTech Bd over the past five years, from 2015 to 2019.

1.4 Limitation of the Study

 There is a lack of in-depth experience and analytical ability for writing such a document.
 The use of secondary data was restricted in order to complete the report; such information
is highly confidential, so it was not permitted to be shared.
 A lack of expertise makes it difficult to analyze results.

2
 Chapter-2
Organization Overview

3
2.1 About NanoTech BD
Nanotech Bd Limited is one of Bangladesh's most reputable security surveillance technology and
computer-related products firms. Since its founding in 2012, the organization has worked to
fulfill the needs and aspirations of consumers by distributing high-quality goods while ensuring a
high level of customer satisfaction.

Nanotech has gained a strong reputation, name, and fame in the CC Camera and computer
business arena of Bangladesh by providing sincere care and complete satisfaction to its clients. It
has a solid reputation as a trustworthy distributor and supplier of CC Camera Security
Surveillance, Computer products, and technology solutions to the corporate and local markets.
Nanotech has made strides forward by focusing solely on understanding business demands,
supplying consumers with cutting-edge technology, and providing all types of customer service
support.

2.2 Mission and Vision of Messers Krishi Samvar

Vision: To create a landmark distinction in the field of information and communication
technology by being a leading provider of office automation products and solutions.

Mission:

 To provide superior goods and services to society through inventions and the best
possible solutions that improve the quality of life, as well as to meet the needs of
customers through high moral and business ethics.
 To provide clients with the highest quality, most up-to-date goods in order to satisfy their
technical dreams and desires.
 To place the highest emphasis on the needs and satisfaction of customers.
 To use a national network to deliver high-quality goods and services.
 To increase the value of both shareholders and stakeholders, as well as to invest in
ongoing HR growth.
 To find, produce, and keep the best people.

4
2.3 Product & Service Description
The following goods and services will be provided in the project area based on Right Ways
cervices:

• Internet access via wired and peer-to-peer radio

• IT and ICT development training
• Access to an unlimited Wi-Fi hotspot

Product & Service

Wired Broadband Unlimited Wi-Fi IT & ICT

Internet Hot Spot Development with
Connectivity SR

Connection in Hot Spot in Training for

Educational Market/Bazar Teachers with
Institute SR

Hot Spot Tele-medicine &

Connection in
in Tele-health
SME
Important support
Gathering
Hot Spot in
Home Tele Governance
Colleges and
Connectivity and Awareness
Universities

5
 Chapter-3
Internship Duties and responsibilities

6
3.1 Description of the Job:
My internship is with NanoTechBD Limited's Accounts & Finance department. NanoTechBD's
Accounts and Finance Department is divided into five parts. These are the ones.

1. Financial Accounting
2. Cost Accounting
3. Managerial Accounting
4. Financial Management
5. Auditing

3.2 Job Responsibility’s:

Finance department duties include maintaining and controlling all aspects of accounting and
finance. The following are the core duties of the Accounts Department:

1. To keep a comprehensive regular sales report.

2. To keep a regular cashbook up to date.
3. And keep track of expenditures.
4. To process all types of payments, including salary payments.
5. Any transaction should be recorded in a report.
6. To keep inventory under control.
7. Creating financial statements
8. To make a sales and expense estimate for the future.
9. To complete other accounting-related tasks.

3.3 Learning outcome

1. Recognize and distinguish working with professional standards
2. Understand the moral values and the ethical behavior.
3. Arranging and enable to keep information.
4. Effective time distribution.
5. Dress appropriately.

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Chapter-4
Methodology

8
4.1 Report Methodology
The study's data collection and methodology are critical components. It is produced in such a
way that it corresponds to the study's objectives. It involves things like sample design, data
sources, data collection procedures, data analysis techniques, and so on.

4.2 Data Collection Procedure

I obtained information from primary and secondary sources.

4.3 Data Analysis Procedure

After the data was collected, it was analyzed using Microsoft Word and Excel. The results were
then made. The current situation was clarified and recommendations were made based on the
results.

4.4 Data Collection

This report is based on a mixed methodology approach. This study used both primary and
secondary data sources. As a result, the report included both secondary and primary details.

4.5 Sources of Data

The sources of data were two types-
I. Primary Source:
Primary data have been collected through the financial database of NenoTehBD

II. Secondary Source:

 Annual reports of NanoTech BD.
 Relative research papers.
 Websites of the company.

9
 Chapter-5
Financial Performance Analysis

10
4.3 Financial Ratio Analysis
The importance of ratios in making sound investment decisions cannot be overstated. However,
there is a use for ratio analysis:
 It can be used to examine the risk and return relationships of different companies of
various sizes.
 Proportions can be used to create a profile of a company, including its financial
characteristics and aggressive methodologies, as well as its unique working, financial,
and speculation qualities.
 Given the differences between companies and the effect of fluctuating capital structures,
as well as differences in bookkeeping and detailing strategies, shifts (patterns) in a
proportion and inconstancy over time may be more instructive than the dimension at any
given time.
4.3.1 Liquidity Ratio
We may examine the Current Ratio, Quick Ratio, and Cash Ratio based on the information
provided by NenoTech BD.

11
4.3.1.1 Current Ratio
It measures the capability of an organization to pay its current liability by using its current asset.

Current Assets
Current Ratio =
Current Liabilities

Particular 2016 2017 2018 2019 2020

Current ratio 3.92 3.29 3.29 2.59 3.08

Current ratio
4.5
3.92
4
3.5 3.29 3.29
3.08
3
2.59
2.5
2
1.5
1
0.5
0
2016 2017 2018 2019 2020

Figure 1 Current Ratio of NenoTech BD

Interpretation:

12
In the graph the current ratio is showing decreasing trend over the year (2020-2016). In 2016 the
current ratio was 3.92 which is highest compared to five year, but it decreased to 3.29 in 2017
and also 2018 but in 2020 it increased little bit than 2019 and the ratio was 3.08. Compared to
the five-year 2016 is the best because in 2016 the organization was 3.92 taka for 1.00Tk liability.

13
4.3.1.2 Quick Ratio
It refers how much most quick asset an organization have to meet its current liability

Current Assets−Inventory
Quick Ratio =
Current Liabilities

Particular 2016 2017 2018 2019 2020

Quick ratio 3.13 2.53 2.53 1.3 2.04

Quick ratio
3.5

2.5

1.5

0.5

0
2016 2017 2018 2019 2020

14
 Figure 2 Quick Ratio of Nanotech BD

Interpretation:
Fast proportion of the company was higher and lower in 2016 and 2019, but it was relatively
stable with the exception of those years.

15
4.3.1.3 Cash Ratio
It refers how much cash an organization have to meet its current liability

Cash+ Cash Equivalent

Cash Ratio =
Current Liabilities

Particular 2016 2017 2018 2019 2020

Cash ratio 1.74 1.3 1.3 0.11 0.26

Cash ratio
2
1.8 1.74

1.6
1.4 1.3 1.3
1.2
1
0.8
0.6
0.4 0.26
0.2 0.11
0
2016 2017 2018 2019 2020

Figure 3 Cash Ratio of Nanotech BD

16
Interpretation:
The organization's cash amount was extraordinary from 2016 to 2018, but it was completely
reduced in 2019 and 2020, which isn't valuable for the organization by any stretch.

17
4.3.2 Efficiency and Activity Ratio
We will analyze Total Asset Turnover Ratio, Fixed Asset Turnover Ratio, Current Asset
Turnover Ratio, and Equity Turnover Ratio based on the information given by NanoTech BD.

4.3.2.1 Total Asset Turnover Ratio

The asset turnover ratio compares the value of a company's assets to the value of its sales or
revenues. The asset turnover ratio is a metric that measures how effectively an organization uses
its assets to produce sales.

Particular 2016 2017 2018 2019 2020

Total asset turnover 0.65 0.66 0.75 0.7 0.82

Total asset turnover

0.9
0.82
0.8 0.75
0.7
0.7 0.65 0.66

0.6

0.5

0.4

0.3

0.2

0.1

0
2016 2017 2018 2019 2020

18
 Figure 4 Total Asset Turnover Ratio of Nanotech BD

Interpretation:
Total asset turnover has been very consistent over the last five years, and is neither impressive
nor negative to the relationship by any stretch of the imagination. In any case, it must develop in
order to assist the organization's undertaking implementation.

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4.3.2.2 Fixed Asset Turnover Ratio
Particular 2016 2017 2018 2019 2020

Fixed asset turnover 1.18 1.21 1.38 1.07 1.2

Fixed asset turnover

1.6
1.38
1.4
1.18 1.21 1.2
1.2
1.07
1

0.8

0.6

0.4

0.2

0
2016 2017 2018 2019 2020

Figure 5 Fixed Asset Turnover Ratio of Nanotech BD

Interpretation:
The graph shows that the Fixed Asset Turnover ratio of NanoTech BD is increasing trend over
the year 2016 to 2018, but after 2018 it decreased to 1.07 in 2019 and also increased little bit in
2020.

20
4.3.2.3 Current Asset Turnover Ratio

Particular 2016 2017 2018 2019 2020

Current asset turnover 1.43 1.45 1.65 2.05 2.59

Current asset turnover

3
2.59
2.5

2.05
2
1.65
1.5 1.43 1.45

0.5

0
2016 2017 2018 2019 2020

Figure 6 Current Asset Turnover Ratio of Nanotech BD

Interpretation:
Here the graph shows that the Current Asset Turnover ratio of NanoTech BD is increasing trend
over the year 2016 to 2020.
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22
4.3.2.4 Equity Turnover Ratio

Particular 2016 2017 2018 2019 2020

Equity turnover 0.8 0.85 0.96 0.82 0.96

Equity turnover
1

0.96 0.96
0.95

0.9

0.85
0.85
0.82
0.8
0.8

0.75

0.7
2016 2017 2018 2019 2020

Figure 7 Equity Turnover Ratio of NanoTechBD

23
Interpretation:
With the exception of 2018 and 2020, the equity turnover ratio has been fairly stable over the last
three years, which is neither good nor bad for the business.

24
4.3.3 Profitability Ratio
We will analyze Gross profit margin Ratio, Fixed Asset Turnover Ratio, Current Asset Turnover
Ratio, and Equity Turnover Ratio based on the information given by NanoTech BD.

4.3.3.1 Gross profit margin

Gross profit margin, also known as gross margin, is a financial ratio that measures how efficient
an organization manages its activities.

Net Sales−Cost of good sold

Gross profit margin =
Net Sales

Particular 2016 2017 2018 2019 2020

Gross profit margin 20% 29% 34% 29% 29%

Gross profit margin

40%

35% 34%

30% 29% 29% 29%

25%
20%
20%

15%

10%

5%

0%
2016 2017 2018 2019 2020

Figure 8 Gross Profit Margin of NanoTechBD

Interpretation:
From the graph it is seen that the Gross Profit Margin of nanotech bd is fluctuating over the five
year. As can be shown, it was lower in 2016 and higher in 2018, compared to the other three
years. The organization's execution in the last four years has been excellent.

25
4.3.3.2 Operating profit margin
It refers How much profit an organization make after paying for variable costs of production
such as wages costs of production such as wages raw materials etc.

Operating Income
Operating Profit Margin =
Revenue

Particular 2016 2017 2018 2019 2020

Operating profit margin 18% 30% 34% 28% 29%

Operating profit margin

40%

35% 34%
30% 29%
30% 28%

25%

20% 18%

15%

10%

5%

0%
2016 2017 2018 2019 2020

26
 Figure 9 Operating Profit Margin of Nanotech bd

Interpretation:
In the graph, the operating profit margin was higher in 2018 than lower in 2016, but it has been
relatively stable for the past four years, which is positive for the company's operations.

27
4.3.3.3 Net profit margin
It measures how much net income an organization makes from its total sales.

Net Income
Net Profit Margin =
Revenue

Particular 2016 2017 2018 2019 2020

Net profit margin 17% 20% 22% 26% 24%

Net profit margin

30%

26%
25% 24%
22%
20%
20%
17%

15%

10%

5%

0%
2016 2017 2018 2019 2020

28
 Figure 10 Net Profit Margin

Interpretation:
From 2016 to 2019, net revenue increased at the same level, though it decreased slightly a year
later, which isn't bad.

29
4.3.3.4 Return on assets (ROA)
It describes how much the company makes effective use of its asset to generate revenue.

Particular 2016 2017 2018 2019 2020

Return on asset 11% 13% 17% 18% 20%

Return on asset
25%

20%
20%
18%
17%

15%
13%
11%
10%

5%

0%
2016 2017 2018 2019 2020

Figure 11 Return on Asset (ROA)

Interpretation:
The analysis indicate that Nanotech Bd's Return on Asset has been rising year by year (2020-
2019). The return on Asset (ROA) was 11% in 2016, but it increased to 20% in 2020. As a result,
the situation is favorable.

30
4.3.3. Return on Equity (ROE)
It describes how much the company makes effective use of its asset to generate revenue.

Particular 2016 2017 2018 2019 2020

Return on equity 13% 17% 21% 21% 23%

Return on equity
25%
23%
21% 21%
20%

17%

15%
13%

10%

5%

0%
2016 2017 2018 2019 2020

Figure 12 Return on Equity (ROE)

Interpretation:
The company's return on equity increased from 2016 to 2020 in a five-year period, but remained
stable in 2018 and 2019. However, it increased last year.

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 Chapter-5
Findings, Recommendation and Conclusion

32
5.1 Findings of the study:
At the time doing the financial performance analysis on NenoTech BD I have found different
issues. Here I am shrining some major problems below those are related to the financial ratio
analysis.

 From the year 2017 to 2019 current ratio has decreasing trend. But after 2019 it begin to increase
which means that Right they are trying to handle their current asset and, liabilities more
efficiently.
 In cash ratio Right they reserve more than 1tk against 1tk per liability. So, it is bad for this
organization. Because they have surplus cash leftover which is not being used capably.
 Net profit margin increased in each year which indicate that it is doing well to increasing its Net
profit by using best use of its resources. But in 2020 NPM decreased which is bad indication of
not using resources properly.
 ROE is fluctuating though 2016-2020. Sometimes it was higher and sometime lower. Which
indicate that in some year it was capable to use their equity capital and sometimes it failed.
 ROA constantly increased from 2016-2120 which means that it is capable to use its assets
properly to increases profit.
 Gross profit margin increased in 2016 to 2018 but decreased 2018 and constant in 2020 also.
Which indicate that it can control its cost properly.

33
5.2 Recommendations
According to the problems identified I have tried to give some recommendation to overcome
from that type of problems.

 The current ratio should be well maintained. They can use their resources properly to
increase more investment to gain more profit. They can provide more products to engage
customers.
 The debt ratio should be kept below. Because of that, they can use their liquid resources
and use them instead of loans.
 They should invest their idle money to gain more profit which has reserved in cash
liabilities.
 It should more concerned about its equity capital to utilize properly and get a straight
increasing result each year.
 It should control its cost to increase gross profit margin which has decreased in last year.
 Overall liability needs to be well maintained. Otherwise, it will suffer in a liquidity crisis
in the near future if liability increased more.
 It should need to increase its net operating revenue by using equity capital to cover
liability increasing rate and gain its goal.

34
Conclusion
Within three months of the temporary operation program on Right way limited, the entirety of
what activities is seen as less or not necessarily financial details. Initially, this realistic
curriculum was created to learn about rational budgetary practices in order to distinguish
between this useful analysis and theoretical results. The relationship between realistic learning
and speculative practices includes identifying shortcomings and making recommendations to
correct potential deficiencies. I tried to protect both fragments and regions where I could find
certified data to anchor. The layout of any of the divisions cannot be significant due to time
constraints. Regardless, a tremendous amount of effort was put forward to accomplish the goal of
the impermanent status scheme.

35
References
 2016 audit report
 2017 audit report
 2018 audit report
 2019 audit report
 2020 audit report

Visit the following website:

 http://nanotechbd.net/

36