Submitted in partial fulfillment of the requirements for the bachelor's degree in business economics. As per partial fulfillment of the requirements for the BBA degree, this internship has been carried out under your supervision. This report is an integral part of our academic courses in the completion of the BBA program, which has allowed me to get an insight into the core of the subject.
Roman Khan, BBA Student ID No: BBA Department of Business Administration, Sonargaon University (SU), Dhaka has successfully completed his "Internship Report". Roman Khan, a student of Bachelor of Business Administration, ID: BBA2003021016 from Sonargaon University, declares that the internship report titled "Financial Performance of Ace Bangladesh Ltd." was submitted as a requirement for a degree in business administration. Finally, I would like to thank everyone who helped me prepare this internship report.
CHAPTER: 1
Introduction
Introduction
A freight forwarder, freight forwarder or freight forwarder is a person or company that organizes shipments for individuals or companies to get goods from the manufacturer or producer to a market, customer or final point of distribution. Freight forwarders enter into an agreement with a carrier or often several carriers to move the goods from one country to another. A freight forwarder does not move the goods, but acts as an expert in the logistics network.
For example, the freight forwarder can arrange for cargo to be moved by truck from a plant to an airport, flown to the destination city, and then moved by another truck from the airport to a customer's building. Information typically reviewed by a freight forwarder includes the commercial invoice, shipper's export declaration, bill of lading and other documents required by the carrier or country of export, import and/or transhipment. The FIATA abbreviated description of the freight forwarder as the "Architect of Transport" illustrates the commercial position of the freight forwarder relative to its customer.
Origin of the Report
Objectives
Broad Objective
Specific Objectives
Methodology
Secondary Sources of Data
Limitation of the Study
Time Limit: Due to time constraints, many aspects may not be properly covered in the report. Thus, data confidentiality is another major barrier we faced while preparing the report.
CHAPTER: 2
An Overview of Forwarding Sector
- Freight Forwarding Sector
- Market Dynamics
- Dominant logistics subsectors in Bangladesh
- The annual turnover scenario in the Bangladesh
- Governance
- Regions of business concentration
- Major challenges impeding logistics business growth in Bangladesh
According to industry insiders, the logistics and freight industry in Bangladesh has been thriving for years in line with the steady growth in exports and imports. In the current context, foreign companies mostly open joint ventures with our local companies, and this cooperation has built the foundation for the further accumulation of domestic logistics expertise. Within Bangladesh, the development of export logistics has been driven by foreign freight forwarders and 3PLs, i.e.
Currently, about 1,600 local and 20 to 30 international logistics and freight forwarding companies provide the necessary support to the export and import sector in Bangladesh. The total turnover fluctuates around 1.5 to 2 billion dollars and the sector has directly generated some 40,000 jobs in the past thirty years. As for the logistics sector in Bangladesh, the dominant sub-sector is the freight forwarding services sector.
It is worth noting that Bangladesh's export-related logistics, especially those of food and textiles, are operationally advanced, while the rest of Bangladesh's logistics sector is unsophisticated. The Agility Emerging Market Logistics Index (AEMLI) identifies: air cargo carriers, shipping lines, freight forwarders and distribution property companies will have the highest business viability in the logistics sector in Bangladesh. In the context of Bangladesh, rail and road freight are the main segments for domestic services.
Freight's share of the export and import business in Bangladesh is 80%, while air and road transport is 20%. However, rail transport of goods for export and import has not yet been introduced in Bangladesh. The study conducted by Nyenrode Business Universiteit, Netherlands further revealed that most of the logistics companies in Bangladesh are MSMEs and have an annual turnover of Tk.
High truck rates due to inefficiencies in the transport and logistics system, low truck utilization, extreme levels of congestion on roads and ports, and a large number of empty truck trips are the main reasons.
CHAPTER: 3
The Organization
- Background of Ace Bangladesh Ltd
- Nature of business
- Vision of ABL
- Mission of ABL
- Strategies of ABL
- Motto/Slogan
- Corporate Information
- ABL Products
- List of Application Software of ABL
Ace Bangladesh Ltd was established in 1996 as a joint venture between Aitken Spence PLC, a blue chip conglomerate in Sri Lanka and Bengal Airlift Group, a pioneer freight, logistics solutions and GSA airline provider in Bangladesh. Ace quickly grew into one of the largest and most reliable freight forwarding and logistics companies in Bangladesh, weathering all challenges and operating in markets with limited transport infrastructure. Currently present in four locations with their own flag, namely Sri Lanka, Bangladesh, Maldives and Myanmar, the company has further developed into a true regional player.
We offer our services as a carrier, logistics operator and freight forwarder for international and domestic air freight, sea freight, domestic transport and offer our service in the field of logistics and supply chain management. Goods distribution and transportation, packaging and labeling, as well as customs clearance for general cargo, postal services, and handling of hazardous chemicals, dangerous goods, and temperature-controlled goods. Provide logistics services and innovative logistics solutions that provide competitive advantage to our customers and partners.
Become a valuable business alliance for our customers and partners by building a long-term relationship and sustainable growth. The group company's goal is to build strengths and create growth in all business groups. Revenue generation: The Group's goal is to create business growth by expanding its existing platform, which consists of customers, partners and products.
Cost management and improvement of operational efficiency: through continuous investment in the development of information technology systems and human resources to increase competitiveness and provide satisfaction to customers and trading partners. Increasing business opportunities: through development of existing products and innovations in logistics and business expansion nationally and internationally. Legal Form A joint venture company incorporated in Bangladesh on 12 December 1996 under the Companies Act of 1994.
We provide our services as a carrier, logistics operator, freight forwarder for international and domestic air freight, sea freight, domestic transport, as well as providing our service in logistics and supply chain management.
CHAPTER: 4
Financial
Performance
Ratio Analysis”
Five Years Financial Summary of ABL
Review of Balance Sheet
Review of Profitability Statement
- Ratio Analysis & Graphical Presentation
- Liquidity Ratio
- Leverage Position
- Profitability Ratio
- Net profit Margin
- Net Operating Margin
- Return on Equity (ROE)
- Return on Asset (ROA)
Most years it was increased from the previous year, with the exception of 2021-2022, which is a good sign for the company. Because it proves that ABL is able to pay off its current liabilities with its current assets. It is a fact that the higher current ratio is better for the organization as it helps to avoid defaults and pay off short-term debts quickly.
This means their liability is reducing at a lower rate than their capital from 2017-18 to 2021-22. It has increased because the increase in their total operating income is higher than the increase in net income after tax. Net Operating Margin = (Operating Income – Operating Expenses) / Total Income Table: 3.2 Net Operating Margin All figures are in BDT).
From 207-18 to 2021-22, the performance of Ace Bangladesh Ltd has been up and down in terms of net operating margin. Return on equity (ROE) = net profit after tax / total equity Table: 3.3 Return on equity. The higher the percentage, the better for both the company and the shareholders.
But Ace Bangladesh Ltd's ROE shows that shareholders are receiving higher and higher returns over the years.
RETURN ON ASSET
- Efficiency Ratio
- Tax Management Ratio
- Degree of Asset Utilization
- Operating Efficiency Ratio
- Net Asset Value Per Share
This trend is visible due to fluctuations in net profit after taxes and also in net profit before securities gains and losses. Management should try to maximize this ratio as tax is a direct cash cost that lowers net profit. It increases considerably because their total assets have increased at a lower rate compared to their business income.
This increase in Asset Utilization shows that more and more assets are being utilized, which is a good sign for the company. This means that the company has been able to efficiently use its earnings to cover operating expenses for the past five years. This upward trend reflects that operating income is growing at a higher rate than operating expenses.
The increase in this ratio was due to a significant decrease in their total operating expenses. Net asset value per share = Total equity / Number of shares Table: 5.1 Net asset value per share. The net asset value per share can be defined as an expression for the net asset value that indicates the value per share for a fund (exchange traded, mutual and closed-ended) or a company.
CHAPTER: 5
Findings &
Recommendations
- Findings of the report
- Recommendations of the Study
- Conclusion
- References
After analyzing the performance of Ace Bangladesh Ltd, I have found some important things about the company. The progress of those years was mainly caused by strategic issues and the country's economic instability. I want to make some suggestions here which I think if followed would definitely help Ace Bangladesh Ltd.
Ace Bangladesh Ltd should take a special look at some ratios that are more fluctuating. To attract more customers, Ace Bangladesh Ltd should look for a new marketing strategy, which will increase the company's sales and overall performance. Ace Bangladesh Ltd had fair leverage ratios where it mostly uses the debt to increase revenue rather than the equity.
Ace Bangladesh Ltd is required to achieve brand value with customers to establish an ideal relationship to create a loyal customer. Ace Bangladesh Ltd (ABL) is a joint venture with a small number of employees in the Bangladesh branch. Founded in 1996 by Bengal Airlift Ltd and Ace Cargo (Pvt.) Ltd, Ace Bangladesh Ltd is one of the largest integrated international freight forwarding, logistics and terminal companies in the country.
As one of Bangladesh's most recognizable global brands, Ace Bangladesh Ltd provides customers with fully integrated logistics and container transport services with a network spanning Asia, Europe, North America and Australia. Today, ABL is highly respected in the industry with a reputation for providing customer-centric solutions, a quality through excellence approach and continuous innovation. ABL is one of the leading international freight forwarders in China, providing a full range of logistics and transportation services throughout the country.
It is also an industry leader in the use of information technology and e-commerce to manage the entire shipping process.
Annual Report and Management / Journals
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