34;Financial Performance Analysis of bKash Ltd.''It was an incredible open door for me to get information and involvement about the capacities, strategies and operational component of a budget organization dependent on the regular Finance Department while working in Mohakhali branch of bKash Ltd. Rasheduzzam (ID hereby announces that this report titled “Financial Performance Analysis of bKash Ltd.” has been prepared by me after completing three months of work at bKash Ltd at Mohakhali Branch. I am pleased to certify that the internship report titled as “ Financial Performance Analysis of bKash Ltd.'' prepared by Md.
It was an incredible joy to prepare for writing an internship on the analysis of bKash Ltd's financial statements. I am also grateful to the administration of The bKash Ltd for offering the internship preparation. The report is prepared to reflect on the financial performance analysis of bKash Ltd.
During my temporary position I have worked in the few department of bKash Ltd. Last part I distinguish a few issues of bKash and give a few suggestions to improve their administrations.
Methodology
Sources of data
Limitations of the Study
Another limitation of this report is the banks' strategy of not disclosing some information and data for obvious reasons, which can be particularly useful. With most of this limitation, I tried my best for my dimension to make this report as ideal as possible.
History
Mission and vision
This initiates the ability to influence trades, withdraw, send or retrieve resources from the compact. These organizations are consistently included in the use of bank administrators that allow compact data holders to perform in independent areas outside of bank offices. MFS offers the opportunity to collect another channel beyond the bank office and ATM framework to give millions less demanding access to formal transactions with a system of record.
Given the need to continue budgetary advancement, the association with Bangladesh Bank believes that fully implemented MFS enterprises can lower physical access and cost barriers and over time enable a much higher rate of people to use basic formal organizations of shops and areas. Access to the formal system can lead to a long time in the advancements of things in security, credit, advantages and government parts that realize a colossal number of Bangladesh. The section in the formal part related to cash can encourage an increasingly visible fiscal intermediation and add advancement.
Bank transfer
Cash in
First a security code is required to withdraw money from BRAC Bank ATM where Cash Out from bKash account is enabled.
Send cash
Payment
Mobile energize
Remittance
Worldwide
Organizational Structure of Bkash
SWOT Analysis
Lower transaction limit: The customer transaction limit is very low so that the customer cannot receive enough money from their sender. Training for Agent & Distributor: Customer open their account after agent then distributor get the account from agent.so bKash has to arrange the training for them if they are knowledgeable then bKash gets maximum valid customer. Arrange internship facilities: They can arrange internship programs so that students can get opportunities and work in bKash.
Awareness: bKash needs to create awareness for their customer through advertising and other social media activities. It includes the way a company produces its products, pays its bills, treats its employees, and performs every other organizational operation.
Financial Statement Analysis
Ratio Analysis
CURRENT RATIO
Leverage Ratios
Utilizing a mix of benefits, obligations, value and plot installments, utilization ratios are used to comprehend an organization's ability to meet its long-term monetary obligations. The plot inclusion ratio reveals to us how effortlessly an organization can pay plot costs associated with the obligation they currently have. The proportion is intended to understand the degree of enthusiasm as an element of organization's profit before intrigue and duties (EBIT).
TIE RATIO
DEBT RATIO
A share valuation liability is the most common usage share and gives details of the measure of usage (expected liability) the organization has in relation to the money contributed by investors. As should be obvious from the equation below, the lower the number, the less usage the organization is using. The liability valuation ratio determines the extent of the organization's (or person's) assets financed by the liability compared to the value.
It is typically a part of the long-term practicality of an organization's same old thing and, along with the current ratio, a part of its liquidity, or its ability to cover its costs. As a result, obligation to value calculations often only incorporate long-range obligations as opposed to an organization's everyday obligations. A high obligation to value ratio indicates that the organization has financed its exercises forcefully through obligation and therefore must pay enthusiasm for this financing.
DEBT EQUITY
Interpretation: From the above calculations we can see that the mobile bank used a lot of its own capital in 2015 against the total debt. This area talks about different dimensions of corporate profitability and monetary execution. These ratios, like operational execution ratios, give clients a good sense of how well the organization used its assets to create investor benefits and value.
The long-term profitability of an organization is fundamental to both the organization's chances of survival and the benefit that investors gain. These ratios look at the benefit achieved by the company and contrast these figures with the company's metric, the benefits leveraged by the company, or the size of the offerings. Net profit margin gives us the net profit the company earns per dollar of sales.
This margin indicates the profit after all costs have been incurred and shows what % of sales is represented by net profit. An increase in the ratios indicates that a company is generating a higher net profit on sales than before. Since the mobile bank is in a losing position this year, its profit margin is also negative.
In the year 2015 to 2016 the profit margin is increasing year by year and profitable business in Bangladesh. ROA, a portion of an organization's productivity, equal to a fiscal year's profit, isolated based on absolute resources, communicated as a percentage. The premise of this relationship is that if an organization starts a task and hopes to get an arrival for it, ROA is the arrival they would get.
Basically, if the ROA is above the level that the organization achieves, the assignment should be approved, otherwise it should be rejected.
NET PROFIT MARGIN
This ratio shows how productive an organization is by comparing its total compensation to the normal value to investors. The return on value (ROE) ratio measures how much investors have earned for their interest in the organization. The higher the share level, the more efficient the board is in using its value and the better the return to financial professionals.
RETURN ON ASSETS
Profit for Equity estimates the measure of net income earned by using each dollar/Taka (currency) of the total ordinary value. These proportions express the connection between the dimension of supply and the interest in different resource holdings, receivables, settled resources and so on. Resource turnover estimates a company's ability to leverage its assets to produce deals or revenue—the higher the number, the better.
It additionally shows the valuation system: organizations with low net revenue will generally have high resource turnover, while those with high total revenue will have low resource turnover. Earnings per share are usually viewed as the absolute most important variable in deciding the offer price. The company's current share is contrasted with its past and expected future shares should decide whether the organization's financial condition improves or falls apart over a period of time.
By observing the pattern of a particular share, we see whether the share is falling, rising or generally staying consistent.
Findings
Recommendation
In all the economic conditions of our country, bKash has worked with great confidence and has competed extremely well with other mobile banking institutions. Despite the efforts to do well in some aspects, bKash faced some financial problems from time to time. Some of the problems were excessive bad service, lack of transaction, lack of cash in hand due to vault limit etc.
These problems arise from time to time due to economic slowdown, fluctuations in interest rates, developing capital market, inflation in the money market, etc. Struggling with all these problems and competing with other financial institutions every moment, mobile banking is trying to do its best.
