Report On

“Performance Analysis of Walton HI-Tech industries PLC”

Submitted To
Sabrina Akhter
Assistant Professor
Department of Business Administration
Faculty of Accounting and Information Systems

Submitted By
Md. Sakil Ahmed
ID: 22020201517
Major: Accounting and Information Systems
Department of Business Administration
Jagannath University

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 LETTER OF THE SUBMISSION:

To,
Sabrina Akhter
Assistant Professor
Department of Business Administration
Jagannath University
Subject: Submission of Internship Report on "Performance Analysis of WALTON Hi-Tech
Industries PLC"

Dear Sir,

I'm writing to properly submit my internship report titled "Performance Analysis of WALTON Hi-
Tech Industries PLC" as part of my internship program completion requirements.

This report includes a thorough evaluation of WALTON Hi-Tech Industries PLC's performance
metrics, outlining strengths, challenges, and actionable recommendations for improvement. It
also shows what I learned during my internship and in my studies, giving useful insights into
how real businesses work."
I appreciate your direction and support during this process, and I welcome any constructive
feedback or thoughts you may have on the report.

Thank you for paying attention to this topic.

Best regards,
Md. Sakil Ahmed
ID: 22020201517
Department of Business Administration

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 ACKNOWLEDGEMENT

First, I want to express my deep gratitude to Sabrina Akhter Ma’am, my supervisor and
instructor, for all of her support and guidance in getting my internship report finished. Her
commitment to helping me learn has been motivating, and I am grateful for her oversight
during the report-writing process.

Also, my sincere gratitude goes out to my superiors and in-charge at Walton HI-Tech industries
PLC for their invaluable guidance and support in preparing this report.

At the same time, I owe a great deal of gratitude to the various papers and articles that
provided information and inspiration during the process of my research and writing.

And I'm grateful for the chance to develop during this experience.

Md.Sakil Ahmned

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 SUPERVISOR’S CERTIFICATE

This verification confirms that Md. Sakil Ahmed, ID: 22020201517, is enrolled as a regular
student at Jagannath University's Department of Business Administration, majoring in
Accounting and Information Systems. With my close supervision, he was assigned to finish her
internship report on the topic of "Performance analysis of Walton HI-Tech Industries PLC".
This report, in my opinion, nicely fulfills a portion of the MBA(Professional) program's
requirements.

I wish her success in life.

Sabrina Akhter

Assistant Professor

Department of Business Administration

Faculty of Accounting and Information Systems

Jagannath University

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 DECLARATION

I, Md. Sakil Ahmed, hereby declare that this internship report is an accurate reflection of my
own efforts and experience. Every component of this paper, from analysis to conclusions, is the
result of my own efforts and knowledge. I accept full responsibility for its contents and approve
its validity. This report is a real testimony to my devotion, learning, and efforts throughout the
internship.

Md. Sakil Ahmed

ID: 22020201517
Department Of Accounting and Information Systems
Department of Business Administration,
Jagannath University.

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 Executive summery:

This paper summarizes my experience working as an intern at Walton Hi-Tech Industries PLC, a
well-known manufacturing company in Bangladesh. Established by S.M. Nazrul Islam in 1977,
Walton is a retailing company with a major national and worldwide presence that specializes in
consumer electronics, home appliances, mobile phones, and automobiles.
During my internship, I worked on auditing crucial areas including inventory management and
sales distribution. Through these efforts, I received practical knowledge of the company's
operational activities, financial performance, and strategic decision-making.
An in dept. analysis of Walton Hi-Tech Industries PLC's major financial ratios shows information
about the company's financial performance over the last five years. Profitability, inventory
turnover, and return on assets fluctuations all show the company's challenges and future
potential. While Walton has a significant presence in the Bangladeshi economy and has been
recognized for its corporate social responsibility efforts, addressing areas for improvement, such
as optimizing inventory management and improving operational efficiency, will be critical for
maintaining growth and competitiveness in the dynamic consumer electronics industry.
Overall, this internship has given me invaluable hands-on experience, allowing me to apply
academic knowledge in a real-world situation and develop critical skills for future careers in
consumer electronics and manufacturing industry. I am thankful for the chance to contribute to
Walton's success and look forward to applying my knowledge in future initiatives.

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Table of content:
Executive summary………………………………………………………………...…………………. vi
1. Introduction:
1.1. Background of the study…………………………………………………………….……….2
1.2. Objective of the study……………………………………………………………….……….2
1.3. Methodology………………………………………………………………………………….…..3
1.4. Limitation of the study………………………………………………………………….…….3
2. Company overview:
2.1. History of Walton………………………………………………………………………….…….5
2.2. Major event at a glance……………………………………………………….………….....6
2.3. Mission, vision and core values……………………………….…………………….……6
2.4. Product description…………………………………………………………………………….7
3. Financial evaluation: ratio analysis
3.1. Liquidity ratio……………………………………………………………………………..………9
3.2. Solvency ratio………………………………………………………………………………..….10
3.3. Efficiency ratio……………………………………………………………………………..……11
3.4. Profitability ratio……………………………………………………………………………….12
3.5. Market value ratio………………………………………………………………….…………15
4. Internship Experience and Responsibility
4.1. Position and responsibility……………………………………………………….……….17
4.2. Skill Developed………………………………………………………………………………….17
5. Findings and recommendations
5.1. Findings……………………………………………………………………………………….…...19
5.2. Recommendations……………………………………………………………….……………19
6. Conclusion…………………………………………………………………………….………………………21
7. References……………………………………………………………………….……………………………22

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 Chapter 1
Introduction

1.1. Background of the study:

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These days, it is difficult to picture a home, business, or office without air conditioning, a
refrigerator, a television, or any other gadgets. Although a few years ago, they were luxury
items, but now days, they are required. These electronic gadgets are a part of our daily lives,
from waking up to hearing an alarm on our phone to falling asleep after watching our favorite
TV show. As a consequence, most people consider electronics devices as necessary for
maintaining a certain standard of living in order to save time, money, and effort while also
making life more convenient.
The demand for these types of items is always increasing. In 2024, the consumer electronics
market is expected to generate $10,930 million in revenue. Moreover, the market is projected to
expand by 7.23% annually. In Bangladesh, the consumer electronics market is dominated by
televisions and refrigerators because they are seen as necessities for the home. Additionally,
customers' perceptions have changed over the time, and they now want these goods to provide
a more seamless and customized experience. As a result, it is the responsibility of the industry
participants to make sure they can both guarantee the availability of these items across all
channels and meet these shifting demands.

1.2. Objective of the study:

This financial analysis aims to achieve the following main goals:

 To assess WALTON's performance and financial standing for the previous five fiscal years.
 To evaluate the efficiency of WALTON's money management.
 To measure WALTON's financial results with those of its competitors and the industry.
 To recognize possible market trends and how WALTON's financial strategy might be
affected by them.
 To offer suggestions and strategic understanding derived from the financial study.

1.3.Methodology of the study

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The report has been prepared on the basis of experience gathered during the period of internship. For
preparing this report, I also got information from the annual report and website of Walton Hi- Tech
PLC. I have presented my experience and findings. Maximum data were collected from primary sources.

1.4. Data collection Method:

Relevant data for this report has been collected primarily by direct investigation of different
records, papers, documents, operational process and different personnel. No structured
questionnaire has been used. Information regarding office activities has been collected through
consulting and discussion with Walton Hi- Tech PLC

1.5.Data Sources
Both primary and secondary sources of data are used to complete this study. These two
sources are explained below:

Primary Sources
 Face to face conversation with the Walton Hi- Tech PLC Office colleagues.
 Conversation with the clients.
 Notes taken from day to day working.
 Through consulting with officials

Secondary Sources:
 Files and documents.
 Annual report of Walton Hi- Tech PLC 
 Different manuals of Walton Hi- Tech PLC.
 Different circulars of Walton Hi- Tech PLC

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1.6.Limitation of the study:
As Walton Hi- Tech PLC is a business organization, some information is confidential to them.
Therefore, they did not disclose all the information I needed. Firstly, some employees were
feeling hesitant to share information related to them or properly give the information. Secondly,
secondary sources of data relating to the Business Process Outsourcing (BPO) industry in
Bangladesh are very limited; publications and journals were not much available. Several
obstacles were faced during the financial analysis of WALTON, which could have affected the
study's thoroughness and accuracy:

1. Data Accessibility: The analysis greatly depends on the accuracy and availability of WALTON's
annual reports' historical financial data. The accuracy of the study could be impacted by any
inconsistencies or flaws in the data.
2. Market and Industry Dynamics: Technology, consumer preferences, and market trends are all
changing quickly in the consumer electronics sector. It is difficult to anticipate future trends with
accuracy using historical data because of these dynamic variables.
3. Time Limitations: There are limitations on in-depth analysis that can be done due to the
internship's short time frame. A more thorough investigation might reveal a more complex
picture of WALTON's financial situation.
4. Restrictions on Confidentiality: Some financial information is private and not available to the
public, particularly when it relates to strategic choices and proprietary data. That’s why, the
depth of the analysis is limited by restricted access to such confidential data.

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 Chapter 2
Company overview

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2.1. Company overview:
.

Founded in 1977 by S.M Nazrul Islam, Walton Hi-Tech Industries PLC is a large conglomerate and
manufacturing firm in Bangladesh that specializes in consumer electronics, home appliances, mobile
phones, automobiles, and retailing.

With more than 30,000 people, Walton is one of Bangladesh's major employers. It runs over 1,000 retail
locations under the brand name "Walton Plaza" and has overseas operations in China, India, and the
United States.

The corporation has been acknowledged as a major actor in the Bangladeshi economy, having a strong
presence in electronic goods, real estate, and commerce. According to the CSR Centre of Sustainability
Excellence, it was the second-largest corporate donor in Bangladesh in 2019. Additionally, Walton won
the esteemed Best Brand Award in 2021, becoming the most loved brand in the refrigerator category for
the eighth time.

Walton

VOE Marcel

OUR
BRANDS
ZEM ACC

Safe

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2.2. Major events at a glance:

Major events Year of event

Begins its journey in 1977
Incorporated under the companies act, 1994 April 17th ,2006
Started Production of Refrigerator 2008
Started exporting in 2010
Started Production of AC 2011
Started Production of TV 2012
Started Production of Home & Kitchen Appliances 2014
Started Production of Fan 2015
Achieved 60% of refrigerator market in Bangladesh 2016
Established first compressor manufacturing plant in 2017
Bangladesh
Listed as public limited company in May 14th, 2018
Started trading with DSE & CSE September 23rd, 2020.

2.3. Mission, Vision and Core values:

Mission:
‘Responding to ever changing consumer and market demands through responsible innovative
brilliance and recognized quality standard’

Vision:
‘Aspiring to be bold leader among the top 5 global E&E brands’

Core values:
 competent innovative brilliance
 consumers are priority one
 demand facing predictive market presence
 dynamic quality and compliance standard
 our people, our family

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2.4. Product Description:
Walton has made its mark on a variety of electrical products that we use on a daily basis. At the
moment, the firm produces eight distinct product categories. which are:
1. Washing Machine
2. Home Appliances
3. Kitchen Appliances
4. Electrical Appliances
5. Elevator
6. Refrigerator & Freezer
7. Television
8. Air condition

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2.5 Business Framework and Value Driven Approach
Walton, the most renowned electronics manufacturer brand in Bangladesh, offers a diverse
portfolio of products, including fridges, televisions, ACs, fans, lights, automatic stoves, and
various kitchen gadgets. As a Bangladeshi electric giant, Walton not only meets the domestic
demand but also exports products, showcasing its commitment to quality and innovation. The
company is relentless in its pursuit of technical advancement and fosters a culture of creativity
and inventiveness.

Business Framework:

 Strategic Sourcing and Input Resources Management

 Core Competencies
 Sophisticated Production
 Responsible Customer Service
 Customer Reach
 Value Proposition
Value Driven Approach

We exert value driven approach in our inputs, outputs and overall business structure which helps our
organization define our purpose and clarify what we stand for. It provides a clear direction for decision-
making, ensuring that actions are in alignment with core values. Our core values serve as guiding
principles for evaluating options and determining the best course of action. Each process has a job to do,
and each process is measured on how effective it is in achieving the desired outcomes. With a genuine
articulation of the government’s commitment to transform the country from a lower Middle-Income
country to Upper Middle-Income Country by 2031 and a High-Income country by 2041, Walton’s
business operations are aligned with the government’s 2041 perspective plan.

2.6. Competitive Landscape and Market Positioning

2.6.1.Porter's Five Forces Model
The implementation of Porter's Five Forces model enables us to gain a comprehensive understanding of
the dynamics within an industry and the competitive advantages that can be derived from it. Walton Hi-
Tech Industries PLC. stands at an advantageous position, surpassing its counterparts in all aspects
pertaining to these five forces. A thorough analysis of Walton's Competitive Landscape and Market
Positioning within the E&E industries is presented below:

Threats of New Entrant

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The presence of Walton, with its high-quality products offered at reasonable prices, robust research and
innovation practices, loyal customer base, and the comparative advantage of economic scale, establishes
a lower barrier to entry for global brands in comparison to existing and potential local brands.

Walton's Position

To solidify its market position, Walton has effectively created barriers to entry through the following
strategic initiatives:

• Extensive capital investments;

• Establishment of a comprehensive countrywide distribution channel

• Implementation of a responsive service management system

• Cultivation of a trusted and esteemed brand image.

2.6.2. Substitute Products

Given the distinctive nature of the E&E industry's product offerings, the threat of substitute products
remains considerably low.
Walton's Position

Walton leverages this advantageous market condition in a more competitive manner through the
following strategic initiatives:

• A state-of-the-art research and innovation infrastructure, facilitating continuous enrichment and

advancement;

• Proactive responsiveness to emerging technological innovations, enabling the company to stay at the

forefront of industry trends; and

• A fully equipped and comprehensive manufacturing plant, providing the necessary capabilities to meet

market demands effectively.

2.6.3. Customers Bargaining Power

The presence of numerous market participants, both local and international, within the E&E
industry in Bangladesh fosters an environment of price competitiveness. As a result, customers
possess a relatively high level of bargaining power. However, Walton maintains a competitive
edge in terms of product pricing by ensuring the delivery of quality products that maximize
customer satisfaction.
Walton's Position

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To strengthen its bargaining power over customers, Walton employs the following strategic
initiatives:
• Offering a diverse range of products with customized features, catering to the unique needs of
Customers.
• Providing competitive pricing through the utilization of sophisticated manufacturing facilities;
• Incorporating cutting-edge technologies into product development and manufacturing
processes
• Establishing a widespread network of over 25,000+ point-of-sales (POS) locations across the
country.
2.6.4. Suppliers Bargaining Power

The suppliers wield considerable bargaining power over local manufacturers within the E&E
industry in Bangladesh, primarily due to the reliance on overseas sourcing for all essential raw
materials. Nevertheless, Walton Hi-Tech Industries PLC. maintains a prominent position within
its supply chain, enabling it to exert influence and mitigate potential challenges.
Walton's Position
To reinforce its bargaining power over suppliers, Walton employs the following strategic initiatives:

• Establishment of a diverse supplier base for each material, ensuring multiple sourcing options

• Geographical diversification in procurement practices, reducing dependency on specific regions or

suppliers

• Implementation of robust inventory budgeting and management protocols to optimize resource

allocation and minimize supply chain disruptions.

Chapter 3

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 Performance evaluation:
Ratio Analysis

3.0. Financial Performance

Financial Statements of the Company for the year ended on 30 June 2023. The financial statements have
been prepared in compliance with the requirements of the International Financial Reporting Standards
(IFRSs) and the International Accounting Standards (IASs) as adopted by the Institute of Chartered
Accountants of Bangladesh (ICAB); the Companies Act, 1994;Bangladesh Securities and Exchange
Ordinance, 1969; Bangladesh Securities and Exchange Rules, 2020; Listing Regulations of Dhaka Stock
Exchange Limited and Chittagong Stock Exchange PLC, Financial Reporting Act 2015 and other relevant
local laws as applicable. Net revenue decreased by 18.74 % in the FY2022-2023 over the last year, with

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net income decrease of (35.67%). These results demonstrate that Walton has its ability to continue
fostering its position as the leading Local brand in the Electronics and Electrical Sector in Bangladesh. In
FY2022-2023 and onwards, the company has plans to further increase its dealer numbers and include
more institutional entities to capitalize on the opportunities available in this growing and competitive
sector. Export has decreased by 46.27% in the FY2022-2023 over the last year. In this year, the Company
has reported decrease in sales growth of most of the key product categories except Air-Conditioner and
Electrical appliances. In FY2022-2023, the Company achieved a turnover of Taka 6,637.43 Core though
there were strong forces which acted in the competition and impact of 2nd wave of Covid-19 and
present country wise Inflation. Overall, the country enjoyed macroeconomic stability and relative
political stability which helped the economic and business environments to facilitate the growth of
business and to ensure the ease of business. Domestic political calm was seen to have influenced the
consumers’ confidence and outlooks positively and thus supported healthy growth in competition. With
the positive growth momentum, the Company remained among the leading appliance corporate in
Bangladesh and continued to uphold efforts to strengthen its position and the brand image in the
consumers‘ durable market. With long business history, considerable trust has been built up in Walton’s
reliable products and after-sales services. These strengths, combined with competitive prices and
extensive distribution networks provide very solid foundations for continued future success. Earnings
After Tax (EAT) at the end of the FY2022-2023 decreased by Taka 433.94 Core over the previous FY2021-
2022 resulting in corresponding decrease in Earnings Per Share (EPS) to Taka 25.84 as opposed to Taka
40.16 in the comparative year. The company announced 90% cash dividend for Directors & sponsors and
300% cash dividend for other general shareholders, maintaining its extended history of healthy dividend
policy.

Revenue
The company’s overall net revenue in the FY2022-2023 dropped by a rate of 18.74%, (by Taka 1,530.74
Core) over the last FY2021-2022. This year, the company faced tough time to maintain normal growth in
sales revenue due to higher inflation rate and devaluation of BDT currency against USD and Euro.
Freezer, refrigerators & compressor, television and home & kitchen appliance products sales volume
growth dropped by 35.23%, 39.48% and 36.24% respectively but electrical appliances and air conditioner
products sales grew up significantly by 11.02% and 24.77% respectively.

Gross Profit

Gross profit of the company for the year under review reached Taka 2,335.14 Core compared to Taka
2,653.49 Core in the previous year, a decrease of 12.00%. The company’s gross margin percentage
increased from 32.49% to 35.18% in FY2022-2023. The gross profit margin has increased by 2.70% due to
proper cost control. Gross margin percentage of the Company was impacted by higher mix of low margin
product lines or mix of some relative high products also, especially the significant decline of higher

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margin products growth i.e. freezers & refrigerators, television, home & kitchen appliances compared to
flat margin of other traditional product lines such as electrical appliances and air conditioners.

Operating Expenses

The Company continued to focus on managing operating expenses which were 11.73% of the revenue in
FY2022-2023 and increased from 11.24% of the revenue of FY2021-22. However, in absolute terms, the
operating expenses stood at Taka 778.29 Core in the FY2022-2023 from Taka 918.45 Core in comparative
year. Operating expenses dropped by 15.26% over the prior year due to decline of administrative
expenses and selling & distribution expenses by 1.13% and 17.78% respectively. Sales promotional
expenses was reduced in response to the decline of sales growth even after applying strategic plans for
above-the-line (ATL) and below-the-line (BTL) for advertising and promotional campaigns in the financial
year to retain and maintain current market shares.

Operating Profit

The company’s operating profit decreased during the year to Taka 1,556.85 Core against Taka 1,735.03
Core of FY2021-2022. In terms of percentage, the company achieved 23.46% and 21.24% in the FY2022-
2023 and 2021-2022 respectively. In respect of managing the operating expenses, the growth of
operating expense was comparatively higher than the decline growth of revenue, and hence contributed
to decline the operating profit margin.

Net Finance Cost

In FY2022-2023, net finance cost of the company drastically increased by Taka 284.51 Core over the last
year and reflected net finance cost at 11.31% of the revenue as opposed to 5.70% of the revenue in the
FY2021-2022. The main reason behind the increase in net finance costs was significant devaluation of
BDT currency against foreign currencies specially USD and Euros. As a result, company suffers foreign
currency translation losses in making repayment to foreign suppliers against imports.

Income Tax Expense

In FY2022-2023, income tax expense was stood Taka 4.63 Core as opposed to Taka 17.89 Core in the
FY2021-2022. The current year income tax expenses on ordinary activities of the Company was 0% (zero)
due to declaration of Walton Hi-Tech Industries PLC. as Private Hi-Tech Park. However, the company is
availing 100% tax exemption facilities on its profit from business operation for first 7 (seven) years
commencing from 27 May 2021 to onwards and 70% tax exemption facilities for remaining 3 (three)
years for the period from 8th to 10th year.

Profit for the Year

The company reported profit after tax for the FY2022-2023 was Taka 782.68 Core which reflected 35.67%
decline (in Taka 433.94 Core) over the last year. This represented unfavorable growth over the last year
due to price hike of material and freight cost in international market and devaluation of BDT currency
against foreign currencies

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3.1. Liquidity ratios:
The liquidity ratio indicates how well a business can use its short-term assets to pay its
short-term debt.

I. Current ratio:
Year 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Current ratio 1.85 1.68 1.88 1.59 1.96

Current ratio (times)

1.85 1.88 1.96

1.68 1.59

2018-2019 2019-2020 2020-2021 2021-2022 2022-2023

Over a five-year period, Walton Hi-Tech Industries PLC's changing current ratio—which ranged
from 1.59 to 1.96—generally shows satisfactory liquidity. A ratio greater than one indicates that
the business has stronger liquidity and can meet short-term obligations.

II. Quick ratio:

Year 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Quick ratio 1.12 0.83 1.08 0.93 1.24

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 Quick ratio (times)
1.24
1.12 1.08
0.93
0.83

2018-2019 2019-2020 2020-2021 2021-2022 2022-2023

Walton Hi-Tech Industries PLC's fluctuating quick ratio, which ranged from 0.83 to 1.24 during a
five-year period, indicates different levels of short-term liquidity. Ratios greater than one
suggest that the business has stronger liquidity and can meet short-term obligations without
using inventory.

3.2. Solvency ratio:

Solvency ratios evaluate the capacity of an organization to fulfill its financial obligations over the
longer term.

I. Interest cover ratio:

Year 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Interest cover 11.38 4.9 16.01 3.74 2.10
ratio

Interest cover ratio (times)

16.01

11.38

4.90
3.74
2.10

2018-2019 2019-2020 2020-2021 2021-2022 2022-2023

The interest cover ratio situation for Walton Hi-Tech Industries PLC at this time seems irregular
and maybe worrisome. Although the ratio fluctuates significantly over the course of the five
years, the pattern points to a reduction in the company's capacity to use earnings before

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interest and taxes (EBIT) to pay for its interest expenditures. As shown in 2022–2023, a ratio
below 2.0 raises special concerns as it may indicate difficulties fulfilling interest payments.

II. Debt to equity ratio:

Year 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Debt to equity 0.38 0.37 0.34 0.48 0.30
ratio

Debt to equity ratio (times)

0.48
0.38 0.37
0.34
0.30

2018-2019 2019-2020 2020-2021 2021-2022 2022-2023

This ratio shows how much debt the firm has compared to equity, which reflects its financial
leverage. The declining trend from 0.48 to 0.30 shows a possible reduction in the company's
debt compared to its equity, which might imply stronger financial stability and lower financial
risk.

3.3. Efficiency ratio:

The efficiency ratio calculates how well a corporation uses its assets to generate income.

I. Inventory turnover ratio:

Year 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Inventory 2.38 1.43 1.89 1.83 1.39
turnover ratio

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 Inventory turnover ratio (times)
2.38

1.89 1.83
1.43 1.39

2018-2019 2019-2020 2020-2021 2021-2022 2022-2023

Over five years, Walton Hi-Tech Industries PLC's inventory turnover ratio has fluctuated between
1.39 and 2.38, demonstrating changing efficiency in inventory management. However, a falling
trend signals possible issues in sales and manufacturing efficiency.

II. Asset turnover ratio:

Year 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Asset turnover 0.56 0.37 0.56 0.56 0.43
ratio

Asset turnover ratio (times)

0.56 0.56 0.56

0.43
0.37

2018-2019 2019-2020 2020-2021 2021-2022 2022-2023

The efficiency of the business in making money from its assets is shown by this ratio. While the
stability is noteworthy, the comparatively low prices can point to difficulties in making the most
use of assets to generate money.

3.4. Profitability ratio:

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Profitability ratios measure a company's capacity to create profits in relation to its revenue,
assets, and equity. These measurements shed light on the company's efficiency of handling
activities and creating profits for stakeholders.

I. Return on Asset (ROA):

Year 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Return on 14.81% 6.61% 13.07% 8.28% 5.12%
asset (%)
Return on asset (%)
14.81
13.07

8.28
6.61
5.12

2018-2019 2019-2020 2020-2021 2021-2022 2022-2023

ROA evaluates a company's capacity to create profits from its assets. While the trend varies, the
lowering levels indicate possible issues in efficiently leveraging assets to create profits.

II. Return on Shareholders’ Equity (ROE):

Year 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Return on 20.82% 9.50% 18.80% 12.43% 7.62%
Shareholders’
Equity

Return on Shareholders’ Equity (%)

20.82
18.80

12.43
9.50
7.62

2018-2019 2019-2020 2020-2021 2021-2022 2022-2023

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This ratio illustrates how effectively the firm makes profits in comparison to shareholder
investments. Although the trend demonstrates unpredictability, dropping values indicate
possible obstacles in optimizing profits for shareholders.

III. Gross profit, Operating profit, Net profit trend:

Year 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Gross profit 2,096.7 1,565.57 2,643.44 2,653.49 2,335.14
Operating 1,690.00 1,100.33 1,934.53 1,735.03 1,556.85
profit
Net profit 1,376.11 726.45 1,639.20 1,216.62 782.68

Profitibity trend
2,643.44 2,653.49
2,335.14
2,096.70
1,934.53
1,690.00 1,735.03
1,565.57 1639.2
1,556.85
1376.11
1216.62
1,100.33

726.45 782.68

2018-2019 2019-2020 2020-2021 2021-2022 2022-2023

Gross profit Operating profit Net profit

Walton Hi-Tech Industries PLC had inconsistent profitability throughout the course of the five
years. At the beginning, net, operational, and gross profits are all trending upward, indicating
strong success. Nevertheless, further drops show difficulties or changes in how operations are
carried out that affect profitability. Although the early rise seemed optimistic, a number of

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unanticipated events, including inflation, the worldwide pandemic, and fluctuations in foreign
exchange rates, have resulted in decreased profit margins in subsequent years.

3.5. Market value ratio:

I. Earning per share (EPS):

Year 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Earning per 45.87 24.21 54.21 40.16 25.84
share

Earning per share (BDT)

54.21
45.87
40.16

24.21 25.84

2018-2019 2019-2020 2020-2021 2021-2022 2022-2023

This statistic measures the company's profitability per share, representing the percentage of
earnings related to each outstanding share. EPS dropped due to higher material and freight
costs, BDT currency depreciation, and increased selling and distribution costs.

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 Chapter 4
Internship Experience and
Responsibility

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4.1. Position and responsibility:
During my internship in the internal audit and compliance department, I had the opportunity to
work on a variety of departments, including sales distribution and inventory management.

Core responsibilities and work:

 Performed thorough audits in the sales distribution and inventory analysis areas.
 Verified inventory management procedures to guarantee both accuracy and efficiency.
 Evaluated discrepancies in inventory by looking at inventory records and transections.
 Examined distribution channels and analyzed distributors information.
 Reviewed and verified the distributors documents to ensure minimum risk.
 Contributed to finding areas for operational improvement in the organization.

4.2. Skill Developed:

 Strong analytical skills through inventory and sales data analysis.

 Attention to detail in reviewing inventory records and sales data.
 Communication skills through collaborating with team members and presenting findings.
 Time management and organizational skills in managing audit tasks effectively.
 Problem-solving abilities in identifying areas for operational improvement.

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 Chapter 5
Findings and recommendations

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5.1. Findings:
 Fluctuating Profitability: Over time, the company's profitability measures, such as return
on equity (ROE) and return on assets (ROA), change. This irregularity raises the
possibility of difficulties in continuing to be profitable over time.
 Still maintaining paperwork: Despite being an electronics manufacturing firm, Walton Hi
Tech Industries PLC still relies on physical paperwork for data storage, which is
environmentally unfriendly and may be replaced with software.
 Heavy reliance on imported raw materials: Despite the fact that Walton now
manufactures the majority of its products and parts, the majority of its essential raw
materials are imported. Therefore, the corporation suffers from a disrupted supply chain
and fluctuating currency value amid unforeseen global situations like global pendamic or
war.
 Lack of technological advancement: Walton must always keep updated to maintain their
leadership position in the market, as they operate in a field that demands constant
innovation and adoption of new technologies. However, it appears that Walton is not
utilizing the most recent trends and technologies to establish itself as a leading
worldwide brand.

5.2. Recommendations:
 Supply Chain Optimization: Optimize supply chain management procedures to
guarantee quick material and component acquisition, cut down on lead times, and
eliminate manufacturing bottlenecks. To prevent significant losses, it is also necessary to
be ready for unforeseen circumstances in the future.
 Environmental Sustainability: Software-based work, energy-efficient technology,
recycling programs, and other eco-friendly manufacturing techniques can be
implemented to lessen environmental effect and support sustainability objectives.

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  Invest in Innovation and Technology: To maintain competitiveness in the electronic
manufacturing sector, Walton may employ new technologies to streamline
manufacturing processes and boost product quality.
 Employee Training and Development: Employee training and development programs
should be designed to increase skills and productivity while also encouraging a culture of
continual improvement and innovation.
 Boost Operational Efficiency: Operating efficiency may be increased and expenses can
be decreased by streamlining manufacturing procedures, improving inventory control,
and putting cost-cutting strategies into place.

Chapter 6
Conclusion

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6.1. Conclusion:
Finally, my internship at Walton Hi-Tech Industries PLC has provided me with an inside look at a
top conglomerate in Bangladesh's consumer electronics industry. Through hands-on experience
and in-depth study of important financial measures, I have received priceless insights into the
company's financial health. Despite numerous challenges, Walton's enormous contributions to
the Bangladeshi economy, as well as its commitment, show its importance as a prominent
industry participant.

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References:
https://idlc.com/mbr/article.php?id=492

https://www.statista.com/outlook/cmo/consumer-electronics/bangladesh

https://en.wikipedia.org/wiki/Walton_Group

https://www.waltonhil.com/investors

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 SWOT ANALYSIS

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SWOT Analysis of Walton Hi-Tech Industries

SWOT Analysis is a technique that is being used to evaluate what one's organization has been doing
best at the moment and to develop an effective future strategy. SWOT stands for strength,
weakness, opportunities, and threats thus the method is self-explanatory. A SWOT analysis is used
to evaluate an organization's present competencies and concerns. SWOT analysis is a data-driven
and fact-based analysis that is incredibly important for determining a company's present position
within the industry. Companies do this after a specified time frame in order to keep track of their
strengths and weaknesses. Walton’s perspective of SWOT analysis is given below in detail.

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 a) Strength

 Walton offers a broader range of products to meet market demand, including smart phones, air
conditioners, refrigerators, televisions, and home appliances.
 Walton keeps its products affordable for middle-class consumers by maintaining a low cost of
production.
 Walton operates 425 Walton Plazas throughout the country, which serve as their authorized
showrooms. Additionally, they have 650 Walton Exclusives through which they earn
approximately 6-7 percent commission on Walton group sales.
 Walton offers not only low prices, but also installment plans with a five-year repayment period,
allowing even the lower middle class to afford their products.

b. Weaknesses-

 They are unable to hire skilled labor in order to keep costs down.
 Rather than developing something new, they manufacture products that have already
been introduced by competitors.
 The high-income group continues to prefer foreign-brand products. This is primarily
because they do not trust Walton's quality.

c. Opportunities-

 Walton is a well-known brand in Bangladesh. If they introduce new products with distinctive
features, their sales may increase.
 Walton is the sole manufacturer of electronic products that exports to 20 countries. As a result,
they can establish a global brand and compete with other international brands on the market.
 As the sole exporter of electronic products in Bangladesh, they benefit from a low tax rate
that helps them improve their balance of payments. Additionally, they can easily obtain loans
from banks in exchange for government assistance.

 Customer purchasing power is leading to the growth of continuous GDP expansion .

d. Threats-

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Actionable Strategies of Walton
Walton creates actionable strategies to convert its Weakness into Strengths and Threats into
Opportunities. Before strategies setting, we consider SWOT analysis as shortly given below:

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