CHAPTER-1

INTRODUCTION

Page | 1 Financial Performance Analysis

1.1 Rationale of the Study
Education is not just limited to books and classrooms. In today’s world, Education is the tool to
understand the real world and apply knowledge for the betterment of the society as well as
business. The internship report is designed to bridge the relations between the theoretical
knowledge and the real-life experience. Internship Program brings a student closer to the real-life
situation and thereby helps to launch a career with some prior experience. This study enriching
the knowledge of the different organizations systems, rules, and regulations.
This internship report contains all the information that I gathered in the three-month internee in
SMUG Sweater Ltd. My topic is the “Financial Performance Analysis”. All this information,
which are included in this report, will help the management to identify various scope and
limitations of the factory.
SMUG Sweater Limited is a biggest garments factory in Bangladesh founded on 2006. The head
office is located in Telepara, Chandona, Gazipur-1702, Bangladesh.
During my internship period I worked with the Business Expert of SMUG Sweater Ltd. This
report will reflect the all SMUG Garments. This report will help the Finance department of
SMUG Sweater Limited to improve their activities.

Being an intern, the main challenge was to translate the theoretical and mathematical concepts
into real life experience. The internship program and the study have following purpose:

 To get and organize detail knowledge on the job responsibility.

 To compare the real-life scenario with the lessons learned in the University.
 To experience the real business world.
 To fulfill the requirement of BBA Program.

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1.2 Statement of the Problem

The first and most important step in any research is to identify and delineate the research
problem: that is, what the researcher wants to solve and what questions he/she wishes to answer.

1.3 Purpose of the Study

In general, an objective is broader in scope than goal, and many consist of several individual
goals. The study seeks to achieve the following objectives / Purpose:

1.3.1 General Objectives:

The general purpose of the study is to present an overview of learning of the intern during the
internship program and fulfill the internship requirement. The objective of this report is to
highlight the practice of innovation strategy in Garments Sectors in Bangladesh. At the same
time, to identify the challenges and shortcomings in the implementation of innovation strategy
in this sector.

1.4 Scope of the Study

I have been assigned in the Gazipur of SMUG Sweater Ltd. This report is an attempt to analyze
the garments activities. This study focuses on the garments activities. I had a great opportunity to
gather experience by working in the different department.

In this report I have tried to focus-

 Financial Performance Analysis of SMUG Sweater Ltd.

Page | 3 Financial Performance Analysis

1.5 Methodology

The study on “Financial Performance Analysis of SMUG Sweater Limited”, is descriptive in

nature which is mainly based on secondary data. The study focuses on financial statement
analysis using of ratio and measurement of performance of SMUG Sweater Limited.

Source of the data

The study is mainly based on secondary data.
 The audit report of SMUG Sweater Limited
 Website of SMUG Sweater Limited
 Magazines of SMUG Sweater Limited
 Files and folder of SMUG Sweater Limited
 Written documents of SMUG Sweater Limited

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1.6 Limitations of the Study
Like any other study the limitations of this study is not out of questions. Moreover majority good
aims are present in this study but it has also some information gaps. These are given below:

 Three months’ time is not enough for such an extensive study. It is very difficult to collect
all the required information in such a short period.

 Large-scale research was not possible due to constrains and restrictions imposed by the
factory.

 Sufficient records, publications were not available.

 It was very difficult to get the actual information, because the factory personnel and officials
were sometimes very busy with their Occupational activities. Hence it was little bit difficult
for them to help within their tight schedule.

 Lack of self-knowledge concerning report preparation, was also a limiting factor in preparing
a better report.

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 CHAPTER- 2
LITERATURE REVIEW

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Several authors have analyzed aspects of the garment industry in Bangladesh. Of the various
aspects of the industry, the problems and the working conditions of female workers have
received the greatest attention.  There are several studies including the Bangladesh Institute of
Development Studies (BIDS) study by Salma Chowdhury and Protima Mazumdar (1991) and the
Bangladesh Unnayan Parisad (1990) study on this topic.  Both of these studies use accepted
survey and research methodology to analyze a wealth of data on the social and economic
background, problems and prospects of female workers in the RMG sector.  Professor Muzaffar
Ahmad looks at the industrial organization of the sector and discusses robustness and long-term
viability of apparel manufacturing in Bangladesh. Wiigton (2000) provides a good overview of
this industry, especially the developments in the early years.  One of the few studies on the
Bangladesh apparel industry to be published in a reputed journal in the U.S. is that of Yung
Whee Rhee (2003) who presents what he calls a “catalyst model” of development.  The
Bangladesh Planning Commission under the Trade and Industrial Policy (TIP) project also
commissioned several studies on the industry. Hossain and Brar (2004) consider some labor-
related issues in the garment industry. Quddus (2006) presents a profile of the apparel sector in
Bangladesh and discusses some other aspects of the industry. Quddus (2006) presents results
from a survey of apparel entrepreneurs and evaluates the performance of entrepreneurs and their
contribution to the success of this industry.  Islam and Quddus (2006) present an overall analysis
of the industry to evaluate its potential as a catalyst for the development of the rest of the
Bangladesh economy. A series of enactments were passed to encourage FDI into Bangladesh.
Amongst the Acts were the Foreign Private Investment (Promotion and Protection) Act of 1980;
the Industrial Policy Act of 2005, the Bangladesh Export Processing Zones Authority Act of
1980; the Companies Act of 1994, and the Telecommunications Act of 2001. These legislations
offered incentives for investors, which included 100% foreign ownership in most sectors with an
opening up to garment industry as well, tax holidays and exemptions, reduced import duties on
capital machinery and spare parts, and duty-free imports for 100% exporters of ready-made
garments. A tax rebate facility to non-resident Bangladeshi investors was also extended to induce
investment from abroad (State, 2013). The Bangladeshi government policy in relation to
development of garment industry by and large has been non-interventionist (Ahmed, Greenleaf,
& Sacks, 2014). Similar to the many developing countries policy pattern, it adopted the import

Page | 7 Financial Performance Analysis

substitution policies in the years following its independence (Ahmed et al., 2014). However, the
focus turned to export-oriented growth led by the private sector (Ahmed et al., 2014).
Nevertheless, it is interesting to note that despite the ready-made garment industry playing a
phenomenal growth factor in the country, no targeted government subsidies were given to this
industry nor was the industry picked as a winner to be selectively promoted to propel the growth
of its manufacturing sector (Ahmed et al., 2014). Taking the cue from the successes of the Newly
Industrialized Economies (NIEs), it will merit the government policies to be more targeted to
build the RMG industry. One of the first attempt to support the industry through industrial policy
was through relatively low cost schemes like Special Bonded Warehouse system, back -to -back
letter of credit financing, duty drawback scheme, and cash incentives (Ahmed et al., 2014;
Ahmed, 2009; Haider, 2007; Rhee, 1990; Yunus & Yamagata, 2012). These form of schemes
have not required state financing. The Special Bonded Warehouse system was introduced to
overcome administrative inefficiencies faced by the garment factories. These factories were
given the free trade status if it was 100% export oriented (Rhee, 1990). This system administered
duty-free and restriction free imports of intermediate inputs for garment exporters (Rhee, 1990;
Yunus & Yamagata, 2012). Failure in the financial market was initially resolved by obtaining
financing from multinational corporation collaborators (Rhee, 1990). Since the initial periods,
the government, through the local commercial banks provided open back to back import letters
of credit under its strict foreign exchange control (Ahmed, 2009; Rhee, 1990; Yunus &
Yamagata, 2012). In 1993, this policy was further revised to allow back to back letters of credit
up to 70% of the main letter of credit. This was done to ensure that foreign exchange spent on
purchasing input materials for manufacturing did not exceed 70% of the value of export
earnings. This compulsorily ensured at least a 30% net foreign exchange earnings of total export
value (Yunus & Yamagata, 2012). Further, the Bangladeshi government maintained realistic
exchange rates i.e. it devalued tariff from 89% to 17% in the 1980 fiscal year to ensure exporters
had equal footing with foreign competitors (Ahmed, 2009; Rhee, 1990). This tariff was further
brought down to 13.4% in 2006 (Ahmed, 2009). In 1980 as well, the garment export industry
was announced as a sector which did not require investment licensing (Rhee, 1990). These
measures made imported raw materials more accessible and incentivizing export-oriented
activities, which encouraged export-oriented investments (Ahmed, 2009; Rhee, 1990; Yunus &
Yamagata, 2012). Export promotion policy was pursued through the encouragement of foreign

Page | 8 Financial Performance Analysis

direct investment, establishment of export processing zones, holding trade fairs both in and out
of the country, and duty-free raw material imports (Haider, 2007; Rock, 2001; Yunus &
Yamagata, 2012). Save for the Export Processing Zones, the government does not encourage
FDI into the industry as a measure of protecting the local entrepreneurs (Mohiuddin, 2008).
However, this approach limits the access to new technology and skills spillover to the industry
which can be obtained through the presence of foreign-owned companies (Ahmed, 2009).
Further, the cost of borrowing from local banks are higher compared to its competitors, which
basically makes access to affordable financing difficult and may not be motivating the industry
to expand (Ahmed, 2009). This is quite the reverse to the policies adopted by the East Asian
NIEs, where the financial and basic infrastructure required in promoted industries were readily
available (Lall, 1996). The policies adopted to secure FDI generally, seem to progressively build
on the FDI inflows. However, the amounts secured are so much modest as opposed to the
Vietnamese counter-part as can be seen in Figure 2 below. As highlighted by literature, if the
garment industry is to be built to compete at the next level of technical production, then FDI has
to be channeled to bring in the necessary expertise to benefit from the technological spillovers.
Further, the Bangladesh government has been slow to open this industry to foreign owned
companies, simply because of the protectionist policies pursued. This may be counter reactive to
the development of the industry in the long run. Further, the deplorable conditions of its garment
sector employees have been getting unwanted publicity which pressurizes the international
garments community into stipulating conditions to reform the labor conditions.

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 CHAPTER- 3
ORGANIZATION OVERVIEW

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Smug Sweater Ltd. is one of the leading sweater manufacturers in Bangladesh. We engaged
Garments manufacturing by set up “Smug Sweater Ltd.” in 2006. We are one of the largest
sweater manufacturers & exporter in Bangladesh.
Customers :Germany - Bon Prix, LidL, Street One
Sweden - H&M
UK - Tesco, Next, Sainsbury, Primark, New Look
USA - Jones Apparel Group
Italy - Amita S.R.L.
Spain - Stradivarius (INDITEX TRADING S.A.), Bershka, Zara
Pizza Italia.

Export Countries : GERMANY, U.K, USA, ITALY,SPAIN,SWEDEN

Our Vision...

To be one of the leading garments manufacturer and exporter of Bangladesh by producing top
quality products.

Our Mission...

 We will satisfy our buyers as well as other regulatory requirements ensuring to provide quality
service and products.
 To meet the goal we are committed to put the best endeavors and work as a team efficiently for
continual improvement of the quality management system.
 The management will also ensure the employees benefits and provide training to improve their
skills to the desired level.

Work Place Safety...

SAFETY PRECUTION: All machineries/ equipment are well protected as per local laws as
well as international factory safety guidelines.

BUILDING AND STRUCTURE: Building and its associated civil structure have been
constructed as per approved design of local Govt. authority.

MACHINERY AND PLANT: All the machines and equipment are well protected to ensure
workers safety. Proper safety notice/instruction in Bi-lingual (Bangla & English) is set to the
required equipment.

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STAKING, PACKING AND STORING MATERIAL: Factory warehouse is equipped with
required pallet to systematic arrangements for staking/ storing different fabrics.

WORK-ON OR NEAR MACHINERY IN MOTION: Proper working instruction and notice

(bi-lingual) are attached /put to all machineries and workers are following the correct method of
usage.

Health & Environment Policy...

FACTORY CLEANLINESS: Factory is always being cleaned constantly. Industrial vacuum-

cleaning machine is being used on a regular basis for dirt free interior.

DISPOSAL OF WASTE & EFFLUENTS through ETP (Effluent Treatment Plant): This
factory is ETP (Effluent Treatment Plant) supported factory, from where we are reject waste
water from ETP to the sewerage line. It’s an environment friendly Factory.

MAINTENANCE OF DRAINS: Washroom wastewater drains has been constructed properly.

LIGHTING OF INTERIOR OF FACTORY: The factory floor is lightened with tube light
sets. Factory floor, all exit & stair are equipped with proper emergence light units. Production
floor is equipped with sufficient nos. of industrial exhaust fans for sufficient ventilation and
cooling.

DRINKING WATER PROVISION: There is sufficient volume of fresh natural water for
drinking at convenient location of every floor.

TOILETS/URINAL: There are sufficient separate toilets for male & female workers. All the
toilets are connected with water line for washing system to wash down the pan/commode.

HEALTH CARE AND MEDICINE: There is a qualified register Doctor and two nurses
employed for full time to assist medical and nursing to factory workers. Apart from that forty
certified First-Aid team members are always available in the factory during working hours.

Page | 12 Financial Performance Analysis

 Management & Organogram

Figure: 3.1

Certificate...

 OEKO TEX Standard 100 certified: 10.HBD.77826

 SEDEX MEMBERS ETHICAL TRADE AUDIT (SMETA) PASS REPORT:
10102210183
 BSCI Social audit report Pass--CISE/RdeR/BD/2011-078
 ACCORD audit pass
 AUROOP audit pass
 NEXT audit Pass
 TAKKO audit pass

Page | 13 Financial Performance Analysis

  OEKO TEX Standard 100 certified: 10.HBD.77826

CHAPTER - 4
JOB RESPONSIBILITY

Page | 14 Financial Performance Analysis

My internship started on 5th July, 2021 and I had landed an internship with SMUG Sweater Ltd.
at Gazipur. I was working with one of the reputed garments factory in our country. It was a great
opportunity for me to see the garments factory activity. Garments is differ from the other sector
so I was very excited.

The internship period was for 50 days and I got to work all department of the garments. I got to
interact with a lots of people and buyer. It was a great experience to learn from all the people.
My Managing Director Sir, Manager Sir and other employees of garments was a very dynamic
and hardworking persons. They were supported to me. My learnings from him were commitment
to your work, cooperation and punctuality. I made good friends with students from other
institutes. We worked in a team and as a part of promotional activity we visited many buying
house and interacted with buyers about their product requirements and expectations from the
garments.

Main Activities:
1. Form Fill-Up
2. Form Filling
3. Visited some other buying house

Talking to strangers was a thrilling experience for me. The three months of internship got over in
a jiffy. During all this time, I learned, I lived, I struggled, I made new bonds and more
importantly understood the essence of right attitude and team work.

Page | 15 Financial Performance Analysis

 CHAPTER - 5
ANALYSIS

THEORITICAL ASPECT

Page | 16 Financial Performance Analysis

In theoretical aspect we discuss about the definition and formulas of the financial ratios. These
ratios are categorized as Liquidity, Debt, Profitability, and Cost income and efficiency ratio.

Current Ratio

The current ratio is a liquidity that measures a firm's ability to pay off its short-term liabilities
with its current assets. The current ratio is an important measure of liquidity because short-term
liabilities are due within the next year.
The current ratio is calculated by dividing current assets by current liabilities. This ratio is stated in
numeric format rather than in decimal format. Here is the calculation:

Current Ratio=Current Asset/Current Liability

Current Ratio:

Current Ratio 2012 2013 2014 2015 2016

7.345692245 9.578830006 5.9645037 6.22224725 5.749408336

Current Ratio
9.58
7.35
5.96 6.22 5.75

2012 2013 2014 2015 2016

Figure: 5.1

I calculated current ratio, in 2012 is 7.34, 2013 is 9.57, 2014 is 5.96, 2015 is 6.22 and 2016 is 5.74. So,
2013 is higher than all the years.

Net Working Capital

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Working capital (abbreviated operating liquidity available to a business, organization or other
entity, including governmental entity. Along with fixed assets such as plant and equipment,
working capital is considered a part of operating capital. Current assets minus current liabilities.
It is a derivation of working capital that is commonly used in valuation techniques. If current
assets are less than current liabilities, an entity has a working capital also called a working
capital deficit.

Net Working Capital= Total Current Asset

Net Working Capital:

Net Working Capital 2012 2013 2014 2015 2016

113393.6154 127078.0218 128838.134 144577.147 163560.021
1 1 6

Net Working Capital

163560.02
144577.15
127078.02 128838.13
113393.62

2012 2013 2014 2015 2016

Figure: 5.2

As we can see, net working capital is increasing year by year. In 2012 is 113393.61 and 2016 is
163560.02.

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Debt to total Asset Ratio
Debt Ratio is a financial ratio that indicates the percentage of a company's assets that are
provided via debt. It is the ratio of total debt and total assets.

Debt Ratio = Total Liabilities / Total Assets

The higher the ratio, the greater risk will be associated with the firm's operation. In addition, high
debt to assets ratio may indicate low borrowing capacity of a firm, which in turn will lower the
firm's financial flexibility. Like all financial ratios, a company's debt ratio should be compared
with their industry average or other competing firms.

Debt to Total Assets:

Debt to Total Assets 2012 2013 2014 2015 2016

0.994862628 0.917678261 0.919709225 0.924087955 0.928553058

Debt to Total Assets

0.99

0.93
0.92
0.92 0.92

2012 2013 2014 2015 2016

Figure: 5.3

As we can see, 2013 total assets is low and 2012 total assets is higher than all the years.

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Debt to Equity-Capital Ratio
A computation that indicates the financial strength of a company. The ratio is equal to the fixed
assets of a company divided by its equity capital. Equity of money invested in a company by its
shareholders. If the ratio is greater than 1, some of the company's assets have been financed by
debt.

Equity-Capital Ratio = Long term debt/ Shareholders Equity

Debt to Equity Capital:

Debt to Equity Capital 2012 2013 2014 2015 2016

9.83730709 8.8178771 0.84980683 9.11335998 9.24933151
1 3 9

Debt to Equity Capital

9.84
9.11 9.25
8.82

0.85

2012 2013 2014 2015 2016

Figure: 5.4

In debt equity capital 2012 capital is higher 2013, 2014, 2015 & 2016.

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Net Operating Margin
Net Operating margin takes into account the costs of producing the product or services that are
unrelated to the direct production of the product or services, such as overhead and administrative
expenses. It is calculated by dividing pretax operating profit by total assets and multiplying the
quotient by 100:

Operating Margin = Pretax Operating Profit / Total assets * 100

Net Operating Margin:

Net Operating Margin 2012 2013 2014 2015 2016

1.080800949 2.107901862 2.02900194 1.34722899 1.35910421
5 8

Net Operating Margin

2.11
2.03

1.35 1.36

1.08

2012 2013 2014 2015 2016

Figure: 5.5

As we can see in net operating margin 2012 is 1.08, 2013 is 2.10, 2014 is 2.02, 2015 is 1.34 and
2016 is 1.35. So 2013 margin is higher than 2012, 2014, 2015 & 2016.

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Net interest margin (NIM)

Net interest margin (NIM) is a measure of the difference between the interest income generated

by banks or other financial institutions and the amount of interest paid out to their lenders,
relative to the amount of their (interest-earning) assets. It is similar to the gross margin (or gross
profit margin) of non-financial companies. It is usually expressed as a percentage of what the
financial institution earns on loans in a time period and other assets minus the interest paid on
borrowed funds divided by the average amount of the assets on which it earned income in that time
period (the average earning assets).

Net interest margin = (Total interest income- Total interest expense)/ Total
asset
Net Interest Margin:

Net Interest Margin 2012 2013 2014 2015 2016

1.975334605 2.290715953 1.78017990 1.14423742 1.83637334
8 1 8

Net Interest Margin

2.29

1.98
1.78 1.84

1.14

2012 2013 2014 2015 2016

Figure: 5.6

In net interest margin 2013 margin is higher than all the years.

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Net Non-interest Margin
It is a measure of the difference between the non- interest income generated by banks or other
financial institutions and the amount of non-interest paid out to their lenders, relative to the
amount of their (interest-earning) assets. Non-interest income includes revenues earned from
investing or fee income from fiduciary activities.

Net Non-interest margin = (Total non-interest income- Total non-interest

expense)/ Total asset
Net Non-Interest Margin:

Net Non-Interest Margin 2012 2013 2014 2015 2016

-1.075145052 -0.455470232 0.02077232 1.769493511 1.001900531

Net Non-Interest Margin

1.77

0.02
2012 2013 2014 2015 2016

-0.46

-1.08

Figure: 5.7

I calculated Net Non-interest margin, in 2012 net non-interest margin is -1.07, 2013 is -0.45,
2014 is 0.02, 2015 is 1.76 and 2016 is 1.00. So 2015 is higher than 2014 & 2016 and 2012 &
2013 is negative margin

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The Net Profit Margin
The profit margin ratio, also called the return on sales ratio or gross profit ratio, is a profitability
ratio that measures the amount of net income earned with each dollar of sales generated by
comparing the net income and net sales of a company. In other words, the profit margin ratio
shows what percentage of sales are left over after all expenses are paid by the business.

The Net Profit Margin = Net income/ net sales

The Net Profit Margin:

The Net Profit Margin 2012 2013 2014 2015 2016

13.12242606 30.13291634 29.5901998 21.4189894 16.7753747
2 6

The Net Profit Margin

30.13 29.59

21.42

16.78
13.12

2012 2013 2014 2015 2016

Figure: 5.8

As we can see, 2013 net profit margin is higher than 2012, 2014, 2015 & 2016.

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Times Interest Earned Ratio
The times interest earned ratio, sometimes called the interest coverage ratio. It measures the
proportionate amount of income that can be used to cover interest expenses in the future.

Times Interest Earned Ratio = Earnings before Interest Taxes/ Interest

Time Interest Earned Ratio:

Time Interest Earned Ratio 2012 2013 2014 2015 2016

0.13578033 0.25746426 0.29607500 0.23487544 0.29070136
6 5 7 5 5

Time Interest Earned Ratio

0.3 0.29
0.26
0.23

0.14

2012 2013 2014 2015 2016

Figure: 5.9

In time interest earned ratio, 2012 is 0.13, 2013 is 0.25, 2014 is 0.29, 2015 is 0.23 and 2016 is
0.29. So, 2014 time interest earned ratio is higher than all the years.

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The Degree of Asset Utilization
The degree of asset utilization reflects the portfolio management policies especially the mix and
yield on assets.

The Degree of Asset Utilization = Total Operating expenses / Total assets

The Degree of Asset utilization:

The Degree of Asset 2012 2013 2014 2015 2016

utilization 4.01225759 4.42839435 4.31942449 3.80410746 4.32212946
2 7 1 1

The Degree of Asset utilization

4.43
4.32 4.32

4.01

3.8

2012 2013 2014 2015 2016

Figure: 5.10

As we can see, in 2013 the degree of asset utilization is higher than all the years.

Page | 26 Financial Performance Analysis

Equity Multiplier
The equity multiplier measures the amount of a firm's assets that are financed by its shareholders
by comparing total assets with total shareholder's equity. In other words, the equity multiplier
shows the percentage of assets that are financed or owed by the shareholders.

Equity Multiplier =Total Assets/ Shareholders Equity

The Equity Multiplier

The Equity Multiplier 2012 2013 2014 2015 2016

13.7500774 12.1484815 12.454730 13.1721562 13.9964003
6 3 9 5 9

The Equity Multiplier

14
13.75

13.17

12.45
12.15

2012 2013 2014 2015 2016

Figure: 5.11

As we can see, in 2012 the equity multiplier is 13.75, 2013 is 12.14, 2014 is 13.17,2015 is 13.17
and 2016 is 13.99. So in 2012 the equity multiplier is higher than 2013, 2014 & 2015. But 2016
is higher than all last four years.

Page | 27 Financial Performance Analysis

Return on Assets
Return on assets measures how effectively the company produces income from its assets. Return
on assets calculate by dividing net income for the current year by the value of all the company's
assets and multiplying the quotient by 100.

Return on Assets = Net Income / Assets * 100

ROA:

ROA 2012 2013 2014 2015 2016

0.526505535 1.334404365 1.278126339 0.814801374 0.725053415

ROA

1.33
1.28

0.81
0.73

0.53

2012 2013 2014 2015 2016

Figure: 5.12

I calculated last five years ROA, we can see that in 2012 ROA is 0.52, 2013 is 1.33, 2014 is
1.27, 2015 is 0.81 and 2016 is 0.72. Our garments ROA 2012 was lower than 2013. And 2014,
2015 & 2016 ROA would be decrease.

Page | 28 Financial Performance Analysis

Return on Equity
Return on equity measures how much a company makes for each dollar that investors put into it.
Return on equity calculate it by taking the net income earned by the amount of money invested
by shareholders equity and multiplying the quotient by 100:

Return on Equity = Net Income / Shareholder Investment * 100

ROE:

ROE 2012 2013 2014 2015 2016

7.239491893 16.21098679 15.9187196 10.73269102 10.14813789

ROE
16.21 15.92

10.73
10.15

7.24

2012 2013 2014 2015 2016

Figure: 5.13

I calculated last five years ROE, we can see that in 2012 ROE is 7.23, 2013 is 16.21, 2014 is
15.91, 2015 is 10.73 and 2016 is 10.14. Our garments ROE 2012 was lower than 2013. And
2014, 2015 & 2016 ROE would be decrease.

Page | 29 Financial Performance Analysis

 CHAPTER -6
FINDINGS, RECOMMENDATION & CONCLUSIONS

Page | 30 Financial Performance Analysis

6.1 Findings of the study:
Throughout my internship period and when I was preparing my internship report I have found
some major barriers which may distract the garments for the sake of achieving a position of a
market leader in future.

I have analyzed ROE, ROA, Dept to total Asset, Net Interest Margin, Net Profit Margin. After
analyzed some of years ROE increased and decreased. And also five years of financial analysis
ROA, Dept to Total Asset, Net Interest Margin & Net profit Margin increased and decreased.
Sometimes organization stay in risky situations and they are overcome their situation and earned
profit.

1. Some employees are not good performer, because of lack of knowledge.

2. Poor monitoring system.
3. Employee turnover.
4. Management labor conflict.
5. Proper management policy.

6.2 Recommendation:

Page | 31 Financial Performance Analysis

  Needs to arrange training program continuously for the employee for resolving the
lacking’s of knowledge.
 Organization can increase the monitoring among employees. In this issue they can make
monitoring team.
 According to increase the employee satisfactions based on their salary organization can
introduce some financial facilities to the employee. So that, their working attraction will
be increase.
 Organization can spread their decisions through a chain for overcome their conflict
problem.
 They can strictly maintain their management policy.

6.3 Conclusions:
The Ready-Made Garments (RMG) industry occupies a unique position in the Bangladesh
economy. It is the largest exporting industry in Bangladesh, which experienced phenomenal
growth during the last 25 years. It attained a high profile in terms of foreign exchange earnings,
exports, industrialization and contribution to GDP within a short span of time. The industry plays
a key role in employment generation and in the provision of income to the poor. To remain
competitive in the post-MFA phase, Bangladesh needs to remove all the structural impediments
in the transportation facilities, telecommunication network, and power supply, management of
seaport, utility services and in the law and order situation. The government and the RMG sector
would have to jointly work together to maintain competitiveness in the global RMG market.

Page | 32 Financial Performance Analysis

 Chapter-7
Reference

Page | 33 Financial Performance Analysis

7.1: Reference:

Asaria, M., Mazumdar, S., Chowdhury, S., Mazumdar, P., Mukhopadhyay, A. and Gupta, I. (2009). BMJ
Global Health, 4(3), p.e001445.
Rhee, Y. (1990). The catalyst model of development: Lessons from Bangladesh's success with garment
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