Internship Report On

Financial Performance Analysis of Partex Furniture Ind Ltd.

Department of Business Administration
Submitted On: April 16. 2023
Submitted By
Jalal Ahmed Shawon
ID No: 201531142005
Major: Finance
Program: BBA
Batch: 42nd

Submitted To

Merina Khatun

Lecturer at Bangladesh University

Department of Business administration

 Letter of Transmittal

Date: 16 April 2023

Merina Khatun
Lecturer at Bangladesh University
Department of Business Administration
Bangladesh University

Subject: Submission of Internship report.

Dear Mam,
With great pleasure, here I submit my internship report on merchandising activities in
(Partex Furniture Ind Ltd) that you have approved & assigned as a compulsory
requirement. I have really learned a lot and have gained valuable experience and
knowledge while collecting information for the report. It was certainly a great opportunity
for me to work on this real life project to actualize my theoretical knowledge of this
course in the practical arena and some more which is out of this course.

I hope that this project paper has been to your expectation, if you come across any
question or quarries regarding these cases, it will be my pleasure to clarify your
questions. Therefore, I pray and hope that you would kind enough to accept my
Internship report and oblige thereby.

Sincerely,

Jalal Ahmed Shawon

ID No -201531142005
Batch: 42nd
Major: Finance
Program: BBA
Department of Business Administration
Bangladesh University
Letter of Approval the organizational Supervisor
 Letter of Approval the supervisor

This is to certify that, Jalal Ahmed Shawon student of BBA, ID: 201531142005, 42nd
Batch. Department of business Administration, Bangladesh University, Dhaka
Bangladesh, has completed this Internship program entitled “Financial Performance
Analysis of Partex Furniture Ind Ltd”. He has completed this internship satisfactorily
under my supervision as the partial fulfillment for the award of a BBA degree.

He has done this job according to my supervision and guidance. He has tried his best to
do this successfully. I think his study will him in future to build up his career.

I wish her every success in life.

Supervisor

----------------------------

Merina Khatun
Lecturer at Bangladesh University
Department of business Administration
Bangladesh University
 Letter of Approval of Head Of department

This is to certify that the internship report on „Financial Performance Analysis of Partex
Furniture Ind Ltd.‟ Has been Submitted for the award of degree of bachelor of Finance
(BBA) from Bangladesh university is an internship work carried out by Jalal Ahmed
Shawon, ID:20153114205, Batch 42nd.

------------------------------------------------------------

Engr. M.A Ghulam Dastagir

Advisor, Dean & Head
Department of Business Administration
Bangladesh University
 ACKNOWLEDGEMENT

At first, I would like to express my gratitude to Almighty Allah has given me the
opportunity to go through the total process of internship and to write a report in this
regard.

I would like to take the opportunity to express my gratitude to my Internship Advisor,

Merina Khatun your lecturer of Department of Business Administration, Bangladesh
University whose direction, guidance, and support helped me a lot wrong this report.

It was a great pleasure for me to work in Partex Furniture Ind Ltd as an intern. I think all
the employees for being friendly and cooperative. I was thought of lots of important
things throughout my internship career attention and cooperation.

My deepest appreciation and special thanks goes to Distribution Department Head for
extending their support in complete this report.

At last, I must mention the wonderful working environment and the group commitment of
this Partex that has enabled me a lot of deals to do and observed the Partex activities
during my internship period of three months. Finally, I convey my sincere thanks my
friend who inspire me in different ways to complete the report and course as well.
 EXECUTIVE SUMMARY

The report is based on my internship program and financial statements of 2013, 2014,
2015, 2016 and 2017 of Partex Furniture Ind Limited. When I start to preparing this
report I obtained first-hand knowledge about the Furniture industry and was confronted
for the first time with the comparative commercial world. On the other side I learnt how
to work under pressure and cooperate in a team. Partex Furniture Ind Ltd (PFIL) which
was started small in 2002 in Narayangong has made its way around the country ranging
from Billet to unique Furniture in Bangladesh. Because of the lack of cash capital ended
up in an asset which worth around Tk. 400 crore. This slowly led to bigger popularity and
connections to wealthier customers. High-priced products however along with the
increased number of companies offering branded Furniture is eventually becoming a
threat to PFIL share in the market. Partex Furniture Ind Ltd (PFIL) manages to attract its
customer through promised quality, reasonable discounts for cash purchases and long
term relationship of value and bonding. PFIL is sustained through recession phase
because of its modern technology, different types of product and service towards
consumer by creating a bond which is to be forever. Shortage of advertising activities is
the weakness of this company. But nowadays they are planning different. The past 3
month was something unforgettable to me due to the relationship with some people with
extremely beautiful heart and their good mind in this entire period can‟t be paid in return.
The working pressure was a lot, but that gives me is the valuable learning that will be
helpful for me in future.
 Table of Contents

Chapter-1: Introduction
1.1 Origin of the report 02
1.2 Background 03
1.3 Objectives 03
1.4 Methodology 4-5
1.5 Limitation 5
Chapter-2: Organizational Part
2.1 Management Aspect
2.1.1 History 7-8
2.1.2 Vision 9
2.1.3 Mission 9
2.1.4 Goal 9
2.1.5 Philosophy 9
2.1.6 Policy 10-13
2.1.7 Organogram 14
2.2 Product and Services 15-16
2.3 Financial Highlights 17-33
2.4 SWOT Analysis 34
Chapter-3: Learning Part
3.1 Financial Performance Analysis
3.1.1 Ratio Analysis 35-41
3.1.2 Common Size Analysis
3.1.2.1 Horizontal Analysis 42-45
3.1.2.2 Vertical Analysis 46-48
3.1.2.3 Forecast 49
 Chapter-4
4.1 Findings 51
4.2 Recommendation 52
4.3 Conclusion 53

Chapter-5
5.1 Appendices 54-56
Chapter-6
6.1 References 57
Chapter One
Introduction

1
 Origin of the Report
The graduation requirement of Bangladesh University is Internship Program, which is
also a partial requirement of the Internship program of BBA curriculum. The main
focus of internship program is to get the student exposed to the hardest job world.
Being an intern, the first challenge is to compact the theoretical concepts into real life
experience. There are many purposes for internship program, these are;

➢ To find out the details knowledge on job responsibility.

➢ To gather experiences about the present competitive business condition.
➢ Understand the difference between real world and book learning.
➢ To fulfill BBA Program requirements.

Under the guidance of Merina Khatun my academic supervisor, to complete the

internship program I was placed at Partex Furniture Ind limited. Report title select by
the supervisor to satisfy the organizational requirements and fulfillment of the
internship program. To fulfill all requirements of the internship program, I had to
submit this report, which indicates an overview of the organization and financial
analysis of Partex Furniture Ind limited.

2
 Background

Partex Furniture Ind limited is a leading furniture company in Bangladesh. The report
based on Financial analysis of Partex Furniture Ind limited. The report divided into
four chapter such as chapter_1: Introduction, chapter_2: Organizational part,
chapter_3: Learning part and chapter_4: Finding, Recommendation & Finding.
Chapter_1 describe origin of the report, background, objectives, methodology and
limitation. Chapter_2 describe management aspects such as history, vision, mission,
goal and philosophy. Chapter_2 also describe organogram, products & services,
financial highlights and SWOT analysis. Chapter_3 describe financial performance
analysis such as ratio analysis, vertical and horizontal analysis. Chapter_4 includes
findings, recommendation and conclusion.

Report objectives
The main focus of the report is to identify the position of Partex furniture by analyzing
financial data. Anyway, the objective behind this study is something different. The
objectives of the report are given below;

❖ Represent the overview of Partex Furniture Ind limited.

❖ To analyze the financial performance of Partex Furniture Ind Ltd of different years.

There are some specific objectives. These are,

❖ To identify the position by ratio analysis.

❖ Common size Statement.
❖ Vertical and Horizontal Analysis

3
 Methodology

There are different types of Research methodology;

1. Exploratory Research: When a problem that has not been studied clearly
there we doing exploratory, Improve operational definitions and develop the financial
design. Exploratory research helps to determine the good research design, data
gathering method and selection of research subjects.

2. Descriptive Research: Descriptive research is a research that is used to

describe characteristics of a population or phenomenon being studied.

3. Conclusive Research: Conclusion research is called decision making research.

This research provides information that is helpful in giving conclusion on decision
making. The nature of conclusion research is quantitative it includes the form of
numbers that are quantified and summarized. Above all of the methodology here I
used the Exploratory and conclusive methodology

Source of Data:

There are two types of source of data such as primary source and secondary source.
Here I used secondary source of data. The sources that are used to gather and collect
data is given below-

(a) Primary sources:

• Practical work experiences in Partex Furniture Ind Limited

• One to one interview with the Manager, officer, employees and others.
• Observation of Partex Furniture Ind Limited Accounted department and Finance
Department day to day activities.

(b) Secondary sources:

• Annual Report (2013, 2014, 2015, 2016) of Partex Furniture Ind Limited.
• Another secondary source is internet.

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• Other major source is Website and newsletters.

Method of Data collection:

The methods that are used to collect primary source data;

Interview
Questionnaires
Survey
Experiments
Case study
Observation

Limitation:

I was very luck to work in Partex Furniture Ind Limited as an intern. There are also
some limitations that I found when I worked in Partex Furniture Ind Limited. These
ares-

➢ Collecting information and interpreting it, on the basis of my understanding that I

gathered while working on Partex Furniture Ind Limited.
➢ This is the financial analysis of past three years.
➢ Because of their organization privacy concern I had limited access on companies
all operations, so this study does not describe all the features of furniture business

5
 Chapter Two
Organizational Part

6
 Management Aspect:
History:

Nowadays the fastest grow industry in Bangladesh is furniture industry. It has a great
contribution on our national economy. It was said that by experts, the rapid growth of
furniture industry in Bangladesh is mainly induced by the rapid expansion of the
country's retails, corporate and TMnS sector, as well as the huge investments in
different infrastructure projects throughout the country. As a developing country,
Bangladesh is in a huge of urbanization process which has more constructions, more
correction and more communications. To ensure the development of the country the
communication system need to restructure, the housing and office-system and all
which is to be furniture item. For this development it is impossible without furniture
Ind Ltd. The huge demand of furniture and to fulfill these demand a lot of furniture
mills are established.

In the first Furniture Ind established by the partex as the "Bangladesh furniture
Narayangon,Modonpur, the plant formed reenforcing bars and structural sections.
Later the furniture industry gradually extended, acquiring new technological know-
how by setting up a cross-nation European mill in 1987 which incorporated a wire-rod
mill.. The company set up pilot furniture mill to make ribbed high strength wires in
2006. From this time, many other furniture companies established in the country, these
are Partex Furniture Industries Ltd. (PFIL) such as Otobi, Navana Ltd, Akthar, Hatel,
etc. The honorable chairman of PFIL Md. MA Hasam Ali met his friend‟s in 1990
who was an Small business man of Sodorghat in Dhaka division of Bangladesh. He
planned to start an furniture business, because on that time defense projects related to
furniture were going on. The lack of cash capital it wasn‟t initiated. Again during the
opening of LC; the cancellation of the loan which is to be approved by ADB was a
barrier to enter. In 1992, the initiative of opening an LC was successful and the
production of Billet was initiated where 60% of capital funded by bank.

7
The factories were shifted in the town Modonpur Narayangong in 2010. All the
machineries and the needed raw materials were imported from China. But now all
machineries are imported from USA and UK. They have a strong relationship with
bank. Prime bank was the bank which financed the company most. At present the
company has corporate relationship with different bank such as Al-Arafah Islami
Bank, BRAC Bank, Eastern Bank, One Bank, Mutual Trust, Jamuna Bank, Bank Asia
and many more. The raw materials supplied by known suppliers of the Ports. The
price of Scraps are based on the price fluctuated by the rate government announces.
There are also grades of the scraps based on quality which are priced based on the
grades. Dealers are the main clients of the company. Being a client; a company has to
show a bank guarantee or Letter of Credit (LC) or cash advance deposited in a
trustworthy bank or an advance security cheque of minimum 1 crore has to be
deposited in the name of PFIL. When the security is provided, the company fulfills
their demanded amount of products and the payment can be on long-term receivable
basis. Furniture business is on its peek from month jan to dec. The JIT system controls
the collection of raw materials and to deliver the finished goods. Every person related
to the industry work in a systematic way in supply chain process. The industry has
own transport system whis they used to deliver their product faster. Later on Partex
Furniture further expanded their business of transport, and Angle Channel industry.

8
Vision of the company:

The main vision of the company is to transform into a top industrial group by leading
the furniture industry through nonstop production and involuntary innovations.

Mission of the company:

To fulfill the customer needs ensure the best delivery of quality products. The
mission of Partex Furniture Ind limited is to offer service to their customer with the
help of a skillful and committed workforce whose resourceful talents, modern actions
and aggressive edge make the furniture place unique in providing fastest service to
all institutions. Ensure complete Customer Satisfaction. (PFIL)

Values:

Their aim is to be respectful of local customs and circumstances, while ensuring that
they maintain the high standards of integrity and business policy across the country.
They most constantly strive to acquire the highest possible standards in their
production work and in the quality of the products and services they provide. The
number one priority is Safety, would be the center point of their strategy. Their
strategy includes responsibility and responsive to the countries, societies and
environments in which they work. They must run their business fairly, with sincerity,
honesty and transparency.

Philosophy:

The philosophy ensures how a mission or purpose is to be gained. The term

philosophy indicates the beliefs, concepts and principles of an industry. Based on a
customer focused approach Partex Furniture Ind limited holding group provides
products, technologies and services of great value in order to bring to life the dreams
and vision of customers with the use of Furniture. The company works together with
customers to create new markets as a means of contributing to the used of a more
affluent society.

9
Policy:

It is mandatory duty for all of the organization to follow the rules of relevant
legislation in the country.
Partex Furniture industries Ltd (PFIL) is committed to follow the rules, proper use of
natural resources and energy, and to reduce the environmental effect of its operations
and products through the acceptance of good practices. PFIL always complies with
applicable environmental laws and regulations.

Policy doctrine:

1. Organization systems: Every organization has an policy to protect the

environment and all organization employee need to follow these rules. PFIL
implements the effectual ecological and power administration system that helps
to increase environmental awareness in the organization and encourage the
employee to follow these rules

2. Permanent enhancement: Environmental impact of processes and products

will be assessed and continuous improvement objectives and targets will be
established to prevent and reduce emissions and minimize waste and control
noise.

3. Atmosphere Change: The main target of PFIL to reduce the products because
the all customer is very dangerous for environment. To implement modern
technologies and use of modern product helps to reduce emissions from the rest
of the society.

4. Liable use of funds: Proper use of fund will be made of power, raw materials
and water during approval and distribution of proper observe.

5. Monitoring and reporting: The environmental and energy performance will be

monitored and audited. The advanced strategy objectives and enhancement
targets will be reported in public.

10
6. Accountable Procurement: PFIL encourages suppliers to supply environment
supported goods and not to use the environment damage goods.

7. Local community: PFIL engaged the people of locality so that they can
understand the environment issues and act as a proper manner. If the people
understand the environmental issue they can helps a lot in future.

8. Biodiversity: Habitats in and around PFIL sites will be respected and where
opportunities arise to do so in a way that is conducive to business operations.
PFIL Provide environmental training to their employees and actively promote
awareness of environmental and biodiversity issues.

11
PFIL Quality policy:

All the needed information is available in PFIL website and the products are tested by
BUET. PFIL has own quality assurance team and they regularly perform all types of
quality test during production final dispatch stage and they ensure that all quality
standard are maintained properly. PFIL has modern and fully equipped testing
laboratory which follow furniture standards. PFIL use different types of testing
equipment‟s, these are; .

➢ lacquer
➢ 100 Tone.
➢ Rigidity Tester.
➢ Magana Product finishing.
➢ Quality control
➢ Products Analyzer.
➢ Camera part
➢ Sharp finish engine.
➢ XL tester
➢ Billets bring to an end for rapid Macro examination.
➢ Fitness tester
➢ Installed at our sales position for greatest contentment of consumers.
➢ Anxiety test statement of each manufactured goods is provided to consumers beside
among the manufactured goods if demanded.

Difficult stage in Furniture construction is melting scrap to billets. In this stage perfect
chemical composition are maintained by control over quality department.

12
Uses and Application of PFIL furniture products:

To developed of suburban multistoried development & marketable Centers. Important

Structure overpass, drain, head waiter, Canals, Coastal, Jetty & RCC work. For
Industrialization Use engineering weighty base, RCC-dowel, RCC channel, urbanized
Section, Seismic region, etc.

Community Welfare & Environment:

Parttex Furniture Ind ltd (PFIL) charge the atmosphere of the communities in which
they control and identify its value. In which area they work look after the area
environment and protect the welfare of their employees. PFIL believe that it is very
important to their long term success.

Environment Pollution avoidance:

PFIL is first Furniture industry in Bangladesh implement first ever smoke treatment
plant in the Furniture industry. PFIL conduct plant is considered to filter grime
particles from be on fire through water spray in an air tight material built hurricane
before it is emitted into the air through a long vent.

Misuse Minimization:

PFIL use waste minimization system and they sent their misuse of scrap metal to billet
built up units to be re-cycled into Furniture again.

Physical condition and Safety policy:

PFIL always take care physical condition and safety policy in every production level
of Partex Furniture Ind limited. PFIL has strong performance monitoring system and
their aim to reduce accident level year on year. PFIL products alert about safety issue
can harm on quality, quantity, productivity in decision making process. PFIL is
popular because of their safe workplace. Partex furniture Ind limited belives that “safe
business is good business”. The most important thing of safety policy is sharing
everyone experience among the organization. PFIL maintains an “e-room”. All
information of accident and details of related data are logged. All management of
PFIL knows that and they built a specific aims of safety issues.

13
 Organogram

Chairman

Director Director Director Director

GM Head Office GM Dhaka Office

Chief Accountant
Factory AGM

Accountant Accountant

Accountant Accountant

Engineer

SR. Commercial SR. Administration SR. Purchase SR. Marketing Officer

Officer Officer

Commercial manager Domestic purchase Foreign purchase Marketing

officer officer officer

14
Products and Services:

Nowadays PFIL has many product related to furniture manufacturing such as

chair.sofa, bed, etc categories but their main product is all furniture. They start their
business with Furniture manufacturing. PFIL furniture is popular because their
products is different from others furniture. Some specialty of PFIL furniture is given
here: improved bend capacity of chai along with superior clasp & power has made it
the selection of value aware consumers. Compared to predictable frozen cruel
products, PFIL considers itself to better-quality fabrication and is the pleasure of
development workforce in and around Narayangong. PFIL earned reputation that they
follow international standards for their production.

The furniture products which are at present created are categorized as;

At present market among all of the products are chair, sofa. Table. Bed. Almirah, etc.
Another characteristic is the term signature of the products.

Image is given below for your understanding the type. These products have enhanced
bend ability along with superior grip & strength has made it the choice of quality
conscious customers.

1. Advantage of discount fabric charge by around 15%, compared to conservative

60 Grade re furniture products.

2. Superlative bend capacity confirms crack free uses, production bending 100%
secure.

3. Secure of products acceptance of all furniture sizes gives per ton more meters of
product and a saving of around 0.50%

4. PFIL de scaled products is better concrete and less wastage in work place.

5. PFIL furniture product is most finishing type.

6. The PFIL industrial unit and depots are installed with computerized weigh
bridges that confirm exact weight.

15
 DIA (MM) C% (MAX) 10 12 16 20 25
0.367 0.574 0.844 1.501 2.967 3.735
0.395 0.617 0.888 1.580 2.470 3.950
0.400 0.625 0.900 1.600 2.500 3.965 Other grades of furniture products are also
available like. PFIL Grad 400 and PFIL Grad 300. (PFIL)

16
Financial Highlights:

17
PFIL (BALANCE SHEET AS AT 30TJ JUNE, 2015)

Partex Furniture INDUSTRIES LTD

18
Partex Furniture INDUSTRIES LTS

19
Partex Furniture INDUSTRIES LTS

20
Partex Furniture INDUSTRIES LTD

21
22
Partex Furniture INDUSTRIES LTD

23
 Partex Furniture INDUSTRES LTD.
Schedule of Security Deposits as at 30th June, 2015

24
Partex Furniture INDUSTRIES LTD.
Report of economic situation

25
Partex Furniture INDUSTRIES LTD.

26
Partex Furniture INDUSTRIES LTD.

27
Partex Furniture INDUSTRIES LTD.

28
Partex Furniture INDUSTRIES LTD.
Statement of Financial Position

29
Partex Furniture INDUSTRIES LTD.

30
Partex Furniture INDUSTRIES LTD.

31
 Partex Furniture INDUSTRIES LTD.
Schedule of Security Deposits as at 30th June, 2017

32
 Partex Furniture INDUSTRIES LTD.
BALANCE SHEET AS AT 30TH JUNE, 2017

33
PFIL SWOT Analysis:

SWOT means strength, weakness, opportunities and threats. SWOT analysis identifies
the problem but it not gives the solution. SWOT analysis has some benefit as well as
some limitation organization should be aware about it before conduct one. But SWOT
analysis is very useful for organization and it saves the time. During my internship
program I personally observed this. I complete SWOT analysis base on my
observation and survey on its performance.

S=Strengths:

The slogan of PFIL is “Best Quality”. They have a beautiful relation with their
consumers, clients, suppliers and dealers. Their provided product and service are
unique that others. They are very careful about the protection of community and
environment.

W=Weakness:

The biggest weakness of PFIL is lack of marketing. They need to be more concerned
about this. When they start business there was a few furniture companies but
nowadays there are a lots of company and the market is very competitive.

O=Opportunities:

PFIL should come up in market with new ideas such as they are in construction
business and also they can expand their business to joint machine manufacturing. PFIL
should increase their product line.

T=Threats:

Nowadays businesses are open for everyone and as a profitable sector many company
came up this business with huge investment like Hatel, Navana, Brothers, etc. So now
the markets are very competitive and it is one of the biggest threats for.

34
Chapter Three Learning
Part Financial
Performance Analysis
For the years 2015-2017

35
 Ratio analysis:

Ratio analysis is a dominant instrument of financial analysis. The connection among

two secretarial facts, articulated scientifically is recognized as fiscal ratio. Ratio can be
used as a catalog or index for evaluating the financial position and presentation on a
solid. Ratio Analysis highlights the liquidity, solvency, productivity, assets gearing
etc.
Supposition of Ratio analysis:

The most familiar form in which fiscal proclamation information are summarized is
the ratio figure. Motivations for tentative figures in ratio form consist of:

❖ To organize for the outcome of dimension differences crossways the bank in the
end.
❖ Making the information better convince the assumption fundamental geometric
apparatus.
❖ Investing an assumption in which a ratio is the changeable of attention.
❖ Developing an experiential observed reliability among a financial ratio and the
judgment of unpredictable of attention.

Principle and make use of Ratio Analysis:

In present world ratio analysis is very important. Risk and return compared by ratio
analysis that is one of the benefits of ratio analysis. Ratios can also make available an
outline of an organization, its financial personality and aggressive strategies, and its
exceptional in commission, fiscal, and savings characteristics. In calculation ratios are
very helpful for both the insiders and outsiders of the stiff.

36
Ratio Analysis of Partex Furniture Ind limited 2015 to 2017

Liquidity Ratios:

Liquidity determines the company ability to pay off its short term debts. If the
liquidity ratio is higher that means that company have enough capability to paid up it
short terms debt.

(A) Current Ratio:

Current ratio means the difference between current asset and current
liability. Current ratio is very popular test around the world because its show
the company ability to repay its debts over next 12 month period.

Interpretation:

The standard current ratio is 2:1 but the PFIL current ratio is slightly lower than
standard ratio. In 2017 it was highest 0.97 but it was 0.93 in 2015. On the other side it
was 0.92 that was lowest among these three years.

37
 (B) Quick Ratio:

Quick ratio is another name is Acid test. Quick test indicates the difference
between Quick asset and current liabilities of a business

Interpretation:

The standard of quick ratio is 1:1 it is internationally accepted ratio and the PFIL
quick ratio is less than standard ratio. Among 3 years quick ratio is higher in 2017 that
was 0.61. In 2015 it was 0.57 and the lowest quick ratio in 2016 that was 0.44.

38
 (C) Gross profit Ratio:

Interpretation:

Among the 3 years gross profit ratio was highest in 2017 and lowest in 2016. In 2015
it was 6.13%, 2016 it was 4.94% and 2017 it was 8.97% that was highest among these
three years.

Interpretation:

When non-operating expenses is deducting from operating profit and adding non
operating income it is called net profit ratio. When the net profit ratio is higher it
means the company is in higher position and it gives concern to others. In 2015 net
profit ratio was 2.69%, 2016 it was 2.26% and 2017 net profit ratio was 3.30%. In
2017 net profit ratio was highest among these 3 years.

39
Interpretation:

The highest mark up was 2017 with the ratio 9.85% and the lowest ratio was 5.19% in
2016. In 2015 it was 6.52%. The figure shows that the increasing and decreasing
trend.

Interpretation:

The return on capital performance shows the company presents condition. In 2015
return on capital employed was 21.82% that was highest next year it was dropped to
13.79% (lowest ratio) but in 2017 it was little bit increased that was 15.84%. Among
these 3 years we saw the up and down trend.

40
Interpretation:

Return on capital ratio is very important ratio for organization because invested
company always follows this ratio. The return on capital invested ratio indicates the
company current financial position. Company got the highest ratio in 2015 that was
28.22% and in 2016 company got the lowest ratio that was 15.62%.

Interpretation:

The highest turnover ratio was in 2015(11 times) and the lowest turnover ratio was in
2017(5.52 times). In 2016(8.54 times) it was little bit less from 2015. The figure
shows that the downward trend.

41
Common Size Analysis

1. Vertical Analysis
2. Horizontal Analysis
3. Forecasting

42
43
44
Interpretation:

Hard cash and equilibrium with treasury banks is growing from 2013 to 2017
because of increase in money deposits and extra balance sheet. Because of raise in
deposits following occurrence happened.

1. Other bank balance is increasing

2. Savings are rising with explosive tendency

3. Benefit are growing with growing leaning

Fixed assets are also rising since 2013 to 2017

Generally total resources of Partex Furniture Ind limited are rising
Beside the mark up interest raising from 2013 to 2017
Additional non mark-up/ interest profits also raise that includes the charge, payment
revenue, dividend takings, grow on transaction of securities and additional profits.
Beside the expenses i.e. concern expenses, provisions beside nonperforming loans,
bad debts which were printed off unswervingly and managerial operating cost are
rising. How ever the raise in income is more than raise in expenses
Revenue before taxes and after taxes increasing since 2013 to 2017 but decrease in
2014.

45
46
47
Vertical Analysis Balance Sheet:

The balance sheet shows that the balance of Partex Furniture Ind limited with other
bank is increasing from 2013 to 2017 that is a very fine symbol for the country.
However besides the landing to financial institutions is decreasing from 2014-2016
and it is not good for the organization. The percentage change in investments and
advances is a little bit but is satisfactory.

The borrowing from financial institutions is decreasing from 8.22% to 3.92% due to
which the interest expense is decreasing and income is increasing which is very good
for the company. The deferred tax liabilities increased up to 2015 to 0.70% but
decreased to 0.06% in 2017 which is very good for the company.

Vertical Analysis of Income Statement:

The income statement represents that net sale is the major source of income for the
company and it is increasing 78.71% in 2013 to 85.55% in 2017 which is very good
sign for the company.

48
 Forecasting

Forecasting analysis indicate the age group of a figure, set of statistics, or situation
that corresponds to a potential incidence. It is significant to tiny array and extended
array setting up. A predicts is based on precedent data as different to a predication,
which is more biased. Forecasting is base on some assumption;

1. The past will repeat itself.

2. Recent forecast will more appropriate than later prediction. Such as tomorrow is
more appropriate than next month. On the other hand nest month is more
appropriate than next year.

3. Forecasting in the cumulative is further correct than forecasting personality

substance.

The simple forecast is native predict. A native predict only uses the real stipulate for
the history era as the forecasted insist for the after that era. This of courses makes the
statement that the precedent will do again.

49
Chapter Four Finding,
Recommendation &
Conclusion

50
 REPORT FINDING

Findings concerning a variety of aspects of financial performance examination are

presented below:

• In 2015 current ratio 0.93% then 2016 it decrease at 0.92% But in 2017 it increase at
0.97%

• In 2015 quick ratio was 0.57% then 2016 it decrease at 0.44% but it again in 2017 it
increase at 0.61%

• The Gross profit ratio of PFIL was 6.13% in 2015 and decreased to 4.94% in 2016
and then increase significantly in 2017 to 8.97%.

• Net profit ratio of PFIL was 2.69% in 2015 and decreased to 2.26% in 2016 and then
increase to 3.30% in 2017.

• The mark up was 6.52 % in 2015 and dropped to 5.19% in 2016. It increased again
to 9.85% in 2017.

• Return on capital employed was 21.82% in 2015. Then it incessantly decreased

significantly to 13.79% in 2016 and then increased 15.84% in 2017.

• Return on capital invested was 28.22% in 2015. It slightly decrease in 2016 to

15.62%. The ratio increased to 18.64% in 2017.

• The stock turnover was 11 times in 2015. It decrease and became 8.54 times in 2016
and then 5.52 times in 2017

51
 RECOMMENDATIONS

1. Partex Furniture Ind limited has enough customer but because of their lack of
production supply and demand circle always not maintained properly. PFIL
should solve this problem because if they lost the customer it will be harder for
them to survive in the market so they need some expert supervisor.

2. Work should be divided by allocated person, one person need to done their
allocated work. An expert is needed to deal with receivables.

3. Present market is very competitive and to survive this market advertising is very
helpful. PFIL has lack of advertising authority should concern about this.

4. One of most important thing is delivery should be on time. PFIL has personal
carrying system but they have been short of co-ordination. Because of short of
co-ordination release got delayed sometimes. PFIL should give the department
some experienced person so that they can handle to problem properly.

5. PFIL is forecast to enlarge industry in construct and Manufacture of

machineries; I suppose its first-class idea. There must be several more policies
concerning the managerial organize. Such as every individual should work
according to their interest. The manages should be like there is no disaster.

6. We know that without independence no one can give the best effort in their
workplace. So PFIL should give the sovereignty to their employees in their
workplace. PFIL should handle their customer more carefully because the
customer consider all in all in marketplace. PFIL should be more attention in
their marketing activities.

7. Customer always wants Excellency so keep the customer to their own and
survive in the marketplace they have to be genuine, coordinative and client
oriented. PFIL wishes to think them for the client sake which will bring job
pleasure and make brand image in marketplace place.

52
 CONCLUSION

It was a huge pleasure for me to work with Partex Furniture Industries (PFIL) Limited.
When I worked in PFIL I got a good chance to survey the function very intimately that
gives me the practical knowledge about the present world. I was lucky that my
colleges were very helpful; from top management to working level everyone was
friendly with me. To work in PFIL had provides me with acquaintance and
associations which will not be achievable in huge MNC. PFIL gives the full attention
to their customer so as an employee I got opportunity to be noticed and appreciated.
Working in this company I obtained knowledge, skills met novel public. Several of my
learning goals have been gained. When I worked in this company I got professional
put into practice. I learned how to work in a corporate workplace. For development of
a project financing is an important factor. Related to my study I have gained
knowledge about finance and accounting and learned how to implement this in
workplace. There have scope to improve. It was a big platform for me to meet new
people and learnt how to handle these people. Ecological learning is not one sided, but
it‟s a system of distribution familiarity, thoughts and opinion. To making this report I
find out my strength and weakness and I got chance to develop my weakness.
Internship program helped me to find out my skill and knowledge. It would be
superior that the awareness stage of the tongue is enough to supply fully to projects. I
would also present and express myself more confidently. At last this work-experience
has specified me new insights and inspiration to chase a occupation in a aggressive
commercial planet.

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54
Product Quality

55
Partex Furniture TV and Newspaper Adds

56
 Chapter-6
Reference

1. Tracy, John A. (2004). “How to Read a Financial Report: Wringing Vital Signs
Out of the Numbers”. John Wiley and Sons. p.173.

2. Clausen, James. (2009). “Accounting 101 – Financial Statement Analysis in

Accounting: “Liquidity Ratio Analysis Balance Sheet Assets and Liabilities”,
Journal of financial statement.

3. Clausen, James. (2009), “Basic Accounting 101- Asset Turnover Ratio:

Inventory, Cash, Equipment and Accounts Receivable Analysis‟, Journal of
asset turnover ratio.

4. Diane, White. (2008), “Accounts Receivable: Analyzing the Turnover R a t i o

‟‟, Journal of Account receivable.

5. Hutchinson, James (2010), “Long Term Debt to Equity Ratio of a Business:

Understand a Company's Value to its Investors and Owners‟, Journal of long
term debt to equity ratio.

6. Thachappilly, Gopinathan. (2009). “Profitability Ratios Measure Margins and

Returns:Profit Ratios Work with Gross, Operating, Pretax and Net Profits”.
Journal of Profitability ratio measure margin and return.

7. Zain, Maria. (2008). “How to Use Profitability Ratios: Different Types of

Calculations that Determine a Firm's Profits ‟‟, Journal of profitability ratio
analysis.

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