Вы находитесь на странице: 1из 38

FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

Report on financial statment & ratio analysis


Training & technology transfer (ttt) ltd.

Submitted By:
You’re Name

Submitted To:
Internship Coordinator

Submitted On:

Financial Statement & Ratio Analysis of TTT Page 1


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

Student Declaration

I hereby declare that assignment entitled

Financial Statement
&
Ratio Analysis of TTT

Submitted in partial fulfillment of the requirement for the degree of

Bachelor of Business Administration (BBA)

To Shanto-Mariam University of Creative Technology, Is my original work and not


Submitted for the award of any other degree, Diploma fellowship or other similar
Title or Prizes.

-Prepared By-
Mohammad Gias Uddin
ID: 0914001002
11th Batch, BBA (P3)
Special Topic in Finance
Department of Business Administration
Shanto-Mariam University of Creative Technology

Financial Statement & Ratio Analysis of TTT Page 2


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

Certification

This is to certify that the assignment report titled

Financial Statement
&
Ratio Analysis of TTT

Submitted in partial fulfillment of the requirement for the degree of


Bachelor of Business Administration ( BBA )
Shanto-Mariam University of Creative Technology

Is approved and accepted in form and quality.

___________________________________
Mr. Rony Kumar Dutta
Supervisor & Lecturer, Bank Management
Department of Business Administration
Shanto-Mariam University of Creative Technology

Financial Statement & Ratio Analysis of TTT Page 3


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

Letter of Transmittal

November 09, 2012

Mr. Rony Kumar Dutta


Supervisor & Lecturer, Bank Management
Department of Business Administration
Shanto-Mariam University of Creative Technology

Sub: Letter of Transmittal

Dear-Sir

I am pleased to submit herewith A copy of assignment report for kind evaluation and
appreciation. I have the immense pleasure to give me a opportunity to make a assignment on
Financial Statement & Ratio Analysis of TTT. I have tried my level best to work sincerely to
cover all aspects regarding this assignment report. Although I faced some limitations to
prepare the report due to scarcity of organized data, time limitation and not enough
knowledge about this issue, I have thoroughly enjoyed in preparing this assignment report
which has contributed significantly to my understanding on essentials and important
knowledge. This report has been completed on the basis of theoretical knowledge.

However, if you need any clarification, suggestion and direction for further improvement of
the report, I will be obliged to provide with further explanation. I sincerely hope that you will
appreciate my effort.

Yours faithfully,

Mohammad Gias Uddin


ID: 0914001002
11th Batch, BBA (P3)
Special Topic in Finance
Department of Business Administration
Shanto-Mariam University of Creative Technology

Financial Statement & Ratio Analysis of TTT Page 4


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

Acknowledgement

It is my great privilege to express my gratitude to the almighty to give me a great opportunity


to complete the assignment and to conduct this study under the supervision, Mr. Mr. Rony
Kumar Dutta Supervisor & Lecturer, Bank Management, Department of Business
Administration ,Shanto-Mariam University of Creative Technology.

I also have to put my heart self gratitude for this kindness and guideline during the
assignment report to complete my assigned the report Financial Statement & Ratio Analysis
of TTT. In preparing the proposed report.

I would like to give special thanks and express my deep gratitude to my honorable supervisor,
Mr. Younus Hossain bhuyain Course coordinator for assigning such an important and
interesting topic to me. While preparing the report I have gained a outlook of overall
knowledge of Financial Statement & Ratio Analysis of TTT, That give me a full insight of
the Financial Statement & Ratio Analysis of TTT. I strongly believe that this will help me to
develop my career.

Financial Statement & Ratio Analysis of TTT Page 5


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

Financial Statement & Ratio Analysis of TTT Page 6


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

Cover Letter 2

Part 1.0 The Organization


1.1 Name, Location and Historical Background of 4-5
Company
1.2 TTT Key Technical Staf 06
1.3 Mission, Vision and Objectives of TTT 06-07
1.4 Organizational Structure of TTT 07
1.5 TTT’s Functions 07-08
1.6 Industry Analysis 09-10
1.7 Strategic, Operational and Legal Issues 10
1.8 Current Status of the Company 10

Part 2.0 Research on Financial & Ratio analysis of


TTT
2.1 Historical Background 11
2.2 Objectives 12
2.3 Management Structure 12
2.4 Financial Statements & Audit 13-23
2.5 Ratio Analysis 24-29
2.6 SWOT Analysis on Financial Position of 29
Company
2.7 Projected Financial Statement for 2012 30
2.8 Financial Analysis 31
2.9 Research Methodology 31
2.10 Recommendations 31-32
2.11 Conclusion 33
Appendix: TTT NZ Registration 34

Financial Statement & Ratio Analysis of TTT Page 7


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

Part 1 –The Organization

1.1 Name, Location and Historical Background of Company

Training and Technology Transfer (TTT) is an international development organization with


more than 20 years of service providing quality technical expertise in emerging countries.
The core mission of TTT is:

“To provide accessible, appropriate, and affordable


Technology Transfer to governments in emerging
nations”

Established on 1989, TTT has a portfolio of over 280 international projects funded by the
Asian Development Bank, World Bank, EU, USAID, DANIDA, SIDA, NZAID, CIDA,UN Agencies
(UNDP, UNICEF and others).

TTT is officially registered in New Zealand (Head Office), the United Kingdom, Norway,
Indonesia, Malaysia, India, the USA, and Australia, as well as in most of the 22 countries in
which we operate.

TTT Bangladesh Office was established in 1993, and has been servicing technical assistance
services to the Government of Bangladesh ever since then.

TTT’s global organogram with our various divisions for efective project management is
outlined below:

Provide Experts (Both local and international consultants in over 38 sectors)


Implement Training Programs (Both in-country and overseas, including study tours,
benchmarking visits, specialized tailor-made courses, workshops, formal degree,
diploma and post-graduate studies)
Undertake Research (Project Technical Assistance, Evaluation, Impact Studies,
Monitoring Program, Needs Analysis and Specialized Research)
Project Facilitation Services (Managing large-scale programs and projects, managing
contracts, project procurement and disbursements, financial management and other
facilitation services)

TTT has a global scope of operation covering 40 countries and has offices and
representatives in 22 countries. TTT is formally incorporated in the United Kingdom, the
United States, New Zealand, Bangladesh, as well as in many countries in South Asia and
South East Asia. Since its inception TTT has completed over 210 projects/programs
worldwide encompassing such sectors as:

Financial Statement & Ratio Analysis of TTT Page 8


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

Education Health Agriculture Financial Reform

Fisheries Urban Development Environment Forestry

Governance Telecommunications Land Reform Technical Vocational

Mining Gender Development Civil Service Reform Rural Development

Oil and Gas Transport Climate Change Micro credit

SME Livestock Crop Science Tourism

Customs Infrastructure Project Management Health Tourism

Bangladesh Office Head Office


House 59 (New), Road#12A (New), Equinox House, Level 9, 111 The Terrace,
Dhanmondi R/A, Dhaka-1209 P.O. Box: 10-488, Wellington, New Zealand.
Tel: 9141672, 9116308; Phone: +64-4-4995845, Fax: +64-4-4999593
Fax: 88-02-9141671 E-mail: mmya@xtra.co.nz
Website: www.tttglobal.com

Financial Statement & Ratio Analysis of TTT Page 9


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

1.2 TTT Key Technical Staf

YEARS OF
NAME OF STAFF HIGHEST FIELD OF EXPERIENCE PROFESSIONAL
QUALIFICATION EXPERIENCE

Nigar Sultana MA (International Project Management 08


Relations)
Faisal Kabir MBA Stakeholder 12
Siddique Communications Expert
Mohsin-Ul-Alam CA Financial Management 12
Gourav Verma MBA Project Management 12
M. Hishamuddin Masters of Operations Project Management 15
Management
Chris Andersen B.A. (Vic) Tech Qual Project Management 16
(Post Grad Level)
Dr. M Anwar M.Ph Contract Management and 17
Javed Quality Assurance
Laov Him MBA Project Management 17
Ray Maria LLB Contract Management and 17
Quality Assurance
Chowdhury G. MBA Project Management 18
Kibria
G.Khan M.Ed Project Management, 19
Monitoring & Evaluation
Paul Senhkye M Ed Project Management 19
Mostafizur M.Com Project Management 19
Rahman
A.M.M. M.Com. Project Management 19
Sadiqueullah
Md. Abu Bakar M.Sc(Ag) Crops Specialist 30
Dr. M. Sahadad Ph.D. Benefit Monitoring & 30
Hussain Evaluation Specialist

1.3 Mission, Vision and Objectives of TTT

TTT’s Mission - To provide accessible, appropriate and afordable technology transfer to


governments in developing nations.

TTT’s Vision - To become the leader of the worldwide Technology Transfer Industry.

Financial Statement & Ratio Analysis of TTT Page 10


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

TTT’s Objectives
 To develop long term relationships with clients based on quality performance based on
added value services.
 To extend well beyond the normal client-consultant contractual terms, to provide value
for money, systems and solutions tailor made to the contextual realities.
To form its local long term presence and professional staf who are dedicated to ‘making a
diference’ in their contribution to sustainable development in emerging countries.

1.4 Organizational Structure of TTT


INTERNATIONAL

RESEARCH AND

MONITORING AND
COORDINATION

DEVELOPMENT

INSTITUTIONAL
MANAGEMENT
ISO QUALITY
ASSURANCE

CONSULTANT
EVALUATION
LOGISTICS AND
INTERNATIONAL

LINKAGES
DEVELOPMENT

MANAGEMENT
SERVICES
PROGRAMME

SUPPORT

PROGRAMME
FINANCIAL
TTT HEAD OFFICE TTT GLOBAL
NEW ZEALAND 22 OFFICES AND REPRESENTATIVES
(Established 1989) WITH
TTT BANGLADESH OFFICE IN DHANMANDI, DHAKA
(Established 1993)
1.5 TTT’s Functions

TTT, Bangladesh operates through four functional departments. These four departments are
Programs & Projects Department, Health Tourism Department, Finance & Accounts
Department and HR & Admin Department. The major functions of the four departments are
briefly described below.

Programs & Projects Department: This department can be said as the core functional
department of TTT. The functions of this department include search for potential projects,
bidding for tenders of diferent projects, working in the projects, conducting day to day
activities of diferent projects and programs, bidding for diferent training programs carried
out by diferent government and private institutions, planning the training programs,
conducting the training programs etc. this department also works the field of transfer of
technology in national and international arena. In this department, Three Program Officers
work under the Programs and Projects Manager. The Manager reports directly to the
Country Director.

Health Tourism Department: Health Tourism is a relatively new concept in Bangladesh. It


can be defined as visiting a country for the purpose of treatment and tourism at the same
time. The Health Tourism Department of TTT targets patients who go abroad for treatment.
These patients and their families are ofered to visit the tourist spots of the country and also
conduct the treatment of the patients. The responsibility of this department includes

Financial Statement & Ratio Analysis of TTT Page 11


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

making all kinds of arrangements for the patient and the ones who will accompany him/her
to receive an excellent treatment and visit the tourist spots. The Health Tourism Manager

reports to the Country Director and one Health Tourism Executive works under the Health
Tourism Manager.

HR & Admin Department: This department conducts traditional functions of an HR & Admin
department such as recruitment & selection, training & development, motivating employees
negotiating and deciding on salary and other benefits of employees etc. As TTT, Bangladesh
is not a big organization, so only one HR Manager is able to handle all the HR & Admin
related issues here. He reports to the Country Director.

Finance & Accounts Department: The responsibility of this department includes budgeting,
cost and revenue forecasting and other traditional works of a Finance & Accounts
department. A Finance and Accounts Manager is enough the run the department of this
small organization. The Finance & Accounts Manager reports to the Country Director.

Financial Statement & Ratio Analysis of TTT Page 12


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

1.6 Industry Analysis

Competitive Conditions:
For TTT’s Programs & Projects sector, there is no competitor other than the DPC group. DPC
group is well organized local company with good and skilled manpower. It entered the
market a long after TTT and it has a lot less market share than TTT.
For the Health Tourism sector, there is no competition in the market. TTT is the only
company in Bangladesh which provides the Health Tourism service.

SWOT Analysis:

To get a good knowledge about a company SWOT analysis is a very good way. It gives a
strong idea about a company in a very qualitative and descriptive way by discussing its
internal strengths & weaknesses and external opportunities and threats. Here, a SWOT
analysis on TTT is given below:

Strengths:
 There is no competitor in the market for TTT’s Health Tourism business.
 TTT is a multinational company working in many sectors. So, if the Health Tourism sector
incurs loss for a year, other sectors can subsidize this sector.
Weaknesses:
 As the target market of TTT’s Health Tourism sector is mainly upper-middle and higher
class, so the target market is not very big in Bangladesh.
 TTT has a very limited number of employees. So, if the demand for its services increase
rapidly, then it will be very difficult for them to handle the situation.
Opportunities:
 More and more domestic airline companies are operating their flights internationally. It
can increase the number of people going abroad for the purpose of treatment and
tourism.
 As a few number of people in Bangladesh are familiar with the concept of Health
Tourism, awareness campaign can be conducted here which may result increased
number of customers for TTT.
Threats:

Financial Statement & Ratio Analysis of TTT Page 13


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

 The concept of Health Tourism is new in Bangladesh. As a result, many people do not
take TTT’s service just because either they are not aware of or they do not understand
this concept.
 New competitors can emerge for TTT in the Health Tourism sector, which can result a
very competitive environment in the future.

1.7 Strategic, Operational and Legal Issues

Strategic Issues: TTT is having problems communicating with their target customers about
Health Tourism concept and TTT’s Health Tourism services within their budget constraints. If
they go for mass marketing, then it will not only be highly expensive, but it would also be
highly inefficient as well. The reason for that is TTT’s target is not the mass population, but
only the upper-middle and upper income level people. TTT is thinking about targeting the
relatively expensive English and Bengali Newspapers which are read by the well-of, such as
The Daily Star and Prothom Alo.

Operational Issues: Currently TTT has a very limited number of employees. Sometimes this
factor causes a problem, especially when there are a lot of works in hand. The employees
find themselves with too much work. So, TTT is thinking about hiring a number of efficient
employees to cope up with the work pressure.

Legal Issues: So far, TTT, Bangladesh has not faced any legal problems since their beginning
of operations in Bangladesh.

1.8 Current Status of the Company

Currently, TTT is doing very well in Bangladesh. They are making profits in all of their
operational sectors. Although the health tourism section is new, but still it is making profits.
Maybe the profit margin is small, but there are a lot of potentials in this sector to grow. TTT
is looking forward to invest more money in this sector in order to create awareness among
and to attract their target market. TTT believes that they are going in the right direction. I
also think the way they are going, they have a bright future ahead of them.

Financial Statement & Ratio Analysis of TTT Page 14


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

Part 2 - Research on Financial Statement & Ratio analysis of TTT

2.1 Historical Background

TTT is not as old an international training management firm that it should have such
significant history. But there are certain events in the past, which make the history worth
mentioning. The history of TTT dates back to 1989, when it was incorporated in Wellington,
New Zealand. “From Training, Technology in NZ to Training & Technology Transfer (TTT)
International”.

TTT's conception, growth linked with the personality of its founder, G.I.A.R Khan, who in turn
was a product of the unique conditions of Training Management. The Khan ran the firm like
a family business. All decisions were centralized with family members and working hours
were long and hard G.I.A.R Khan rose very rapidly but soon found the atmosphere to be too
restrictive for the great number of ideas welling up inside him. In 1999, he left Training,
Technology in NZ and was able to get together Investors to form a new firm to be known as
Training & Technology Transfer (TTT) International.

Within ten years, ‘Training & Technology Transfer (TTT) International’ became the largest
training management firm in World and all that G.I.A.R Khan envisioned, relating to the
facilities, the staf, and relating to the high quality of appearance of the offices, and to the
modern outlook of training management, had been achieved. Internal TTT documents make
clear Khan's ability to motivate his employees to work exceptionally hard. Additionally, the
firm had opened 22 branches worldwide.

Throughout the 1989's, TTT expanded rapidly. Initially, TTT was incorporated in one location
only, Wellington. Ten years later, a firm was created, TTT(BD), with the firm underneath it
TTT(NZ), split into two parts, TTT(NZ), with head offices in Wellington, and TTT(BD), with
head offices also Wellington was used mostly for Third World Countries.

Since its inception, as the new identity of TTT after the Training, Technology NZ in 1989, the
management of the firm has implemented strategies and policies to carve a distinct position
for the firm in the worldwide. Strengthened with the overseas training management and
driven by the strategic goals set out by its board of management, the firm has
invested in revolutionary technology to have an extensive range of services.

This facilitates of TTT commitment to a culture of innovation and seeks out synergies
with clients and service providers to ensure uninterrupted services to its clients. TTT
perceive the requirements of clients and match them with quality products and service
solutions. During the past five years, TTT have emerged as one of the foremost financial
institution in the region endeavoring to meet the needs of tomorrow today.

Financial Statement & Ratio Analysis of TTT Page 15


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

2.2 Objectives

TTT believes in the phrase “client comes first”. TTT’s objective is to please their client by
fulfilling the financial needs as best as possible. They believe in placing the client at the
center of business and all of the products and services. Service excellence is one of the
objectives of TTT. TTT strives continually on the development of new areas of activities to
distinguish itself in worldwide. TTT focus is on Foreign Training Management as primary
niche of business. TTT’s objective is the complete automation and computerization of all of
its service activities. TTT Training and Development program of its employees is aimed at
developing skills of its employees. It makes positive contribution to the service culture of the
training management system as a whole. They are committed to put all their energies,
resources and time to bring higher value and satisfaction to their client, employees. The
introduction and development of innovative training instrument will another major objective
of TTT.

2.3 Management Structure

TTT is proud of its Human Resource, as almost all the employees have been hand picked by
the management. However, in this section, I would discuss those people who are
responsible for hiring such a bright staf and establishing such a magnificent firm. They are
the higher management of TTT.

The Chairman - G.I.A.R Khan, NZ

Name of the organization - Training & Technology Transfer (TTT)

Board of Directors - Dr. Mohammad Anwar Javed, Regional Director, BD


Gourab Verma, Country Director, India,
M. Hishamuddin, Country Director, Malaysia
Chris Andersen, Country Director, NZ
Laov Him, Country Director, Vietnam
Ray Maria, Country Director, Philippine
Paul Senhkye, Country Director, Thailand

Company Secretary - Rehanna Maria, NZ

Auditors - Grant Thornton, NZ

Registered Office - TTT, Level 9, 111 The Terrace, P.O. Box 10-488,
Wellington, NZ

Financial Statement & Ratio Analysis of TTT Page 16


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

2.4 Financial Statements & Audit

Grant Thornton

TTT LIMITED

Financial Report
For the Year Ended
31 March 2011

Financial Statement & Ratio Analysis of TTT Page 17


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

TTT LIMITED
Grant Thornton
Company Directory
As at 31 March 2011

Nature of Business: Consultancy

Business Location: Wellington

IRD Number: 59-587-439

Company Number: WN 550655

Registered Office: Level 13, AXA Centre


80 The Terrace
Wellington

Bankers: Bank of New Zealand

Accountants: Grant Thornton


Chartered Accountants
Wellington

Financial Statement & Ratio Analysis of TTT Page 18


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

TTT LIMITED Grant Thornton


Trading Account
For the Year ended 31 March 2011

Note Mar 2011 2010


$ $ $

Income
Consultancy Income 6,643,647 7,337,381

Direct Costs
Consultants 144,925 38,238
Project Costs 1,422,599 1,522,030
Project Costs MRO 724,475 363,612
Purchases 4,531 10,099
Travel and Accommodation 846,774 711,912
Project Costs – BARMP 324,246 2,160,362
Project Expenses – Bangladesh 419,528 -
ICDC Project Costs 407,398 1,380,254
AMC Project Costs 64,503 -
HENL Project Costs 28,880 -
SESIP Project Costs 590,846 -
VTEP Project Costs 113,199 -
Total Direct Costs 5,091,904 6,186,508

Cost of Goods Sold 5,091,904 6,186,508

Total Gross Profit (Loss) From Trading 1,551,743 1,150,873

Gross Profit Percentage 23.4% 15.7%

Financial Statement & Ratio Analysis of TTT Page 19


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

TTT LIMITED
Grant Thornton
Annual Report
For the Year ended 31 March, 2011

The Board of Directors present here their Annual Report including Financial Statements of the company for the
year ended 31 March, 2006.

Trading Results
2010
$ $

Net Surplus/ (Deficit) for the Year 4,276 5,860


Retained Earnings at 1 April, 2005 118,580 112,720
Leaving Available for Appropriation 122,856 118,580

Dividends
The Directors recommend that no dividend be paid for the year.

Transfers
It is not proposed to make any transfer to reserves.

State of Affairs
The state of the company’s affairs at 31 March 2006 was:

2011 2010
$ $

Assets Totaled 1,157,403 898,032

These were financed by –


Shareholders Funds of 122,956 118,680
Liabilities of 1,034,446 779,352
1,157,403 898,032

As required by section 211 of the Companies Act 1993, we disclose the following information:

Nature of Business
The business of the company is Consultancy. The nature of the company’s business has not changed during the
year under review.

Director’s Interests
The Board received no notices during the year from directors that they had an interest in any transactions or
proposed transactions by the company.

Use of Company Information


The Board received no notices during the year from directors requesting to use company information received in
their capacity as directors which would not have been otherwise available to them.

Financial Statement & Ratio Analysis of TTT Page 20


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

TTT LIMITED
Grant Thornton
Notes to the Financial Statements
For the Year ended 31 March, 2011

Statement of Accounting Policies

Reporting Entity
The financial statements presented here are for TTT LIMITED. The financial statements have been
prepared in accordance with the requirements of the Companies Act 1993 and the Financial Reporting
Act 1993.

Measurement Base
Unless otherwise stated the accounting principles recognized as appropriate for the measurement and
reporting of earnings and financial position on an historical cost basis have been followed.

Specific Accounting Policies


The following specific accounting policies which materially affect the measurement of financial
performance and financial position have been applied:

Fixed Assets are stated at cost less accumulated depreciation. Depreciation has been calculated using
the maximum rates permitted by the Income Tax Act 1994. The depreciation rates used are shown in
the Fixed Asset Schedule.

Taxation expense charged against the profit for the year is the estimated total tax for the year in
accordance with the taxation return to the Inland Revenue Department.

Goods and Services Tax: The financial statements have been prepared on an exclusive basis.

Finance leases effectively transfer to the entity substantially all the risks and benefits incidental to
ownership of the leased item, are capitalized at the present value of the minimum lease value. The
leased assets and corresponding liabilities are disclosed and the leased assets are depreciated using the
maximum rates permitted by the Income Tax Act 1994. Lease payments are apportioned between the
finance charge and the capital repayment in a manner calculated to reflect a constant periodic charge
based on the liability outstanding.

Differential Reporting: The entity qualifies for differential reporting as it is not publicly accountable
and there is no separation between the owners and the governing body. The entity has therefore taken
advantage of all applicable differential reporting exemptions.

Changes in Accounting Policies


There have been no changes in accounting policies which have been applied on bases consistent with
those used in previous years.

Financial Statement & Ratio Analysis of TTT Page 21


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

TTT LIMITED
Grant Thornton
Trading Account
For the Year ended 31 March 2010

Note Mar 2010 2009


$ $ $

Income
Consultancy Income 6,643,647 7,337,381

Direct Costs
Consultants 144,925 38,238
Project Costs 1,422,599 1,522,030
Project Costs MRO 724,475 363,612
Purchases 4,531 10,099
Travel and Accommodation 846,774 711,912
Project Costs – BARMP 324,246 2,160,362
Project Expenses – Bangladesh 419,528 -
ICDC Project Costs 407,398 1,380,254
AMC Project Costs 64,503 -
HENL Project Costs 28,880 -
SESIP Project Costs 590,846 -
VTEP Project Costs 113,199 -
Total Direct Costs 5,091,904 6,186,508

Cost of Goods Sold 5,091,904 6,186,508

Total Gross Profit (Loss) From Trading 1,551,743 1,150,873

Gross Profit Percentage 15.7% 11.3%

Financial Statement & Ratio Analysis of TTT Page 22


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

TTT LIMITED
Grant Thornton
Annual Report
For the Year ended 31 March, 2010

The Board of Directors present here their Annual Report including Financial Statements of the company for the
year ended 31 March, 2005.

Trading Results
2010 2009
$ $

Net Surplus/ (Deficit) for the Year 4,276 5,860


Retained Earnings at 1 April, 2004 118,580 112,720
Leaving Available for Appropriation 122,856 118,580

Dividends
The Directors recommend that no dividend be paid for the year.

Transfers
It is not proposed to make any transfer to reserves.

State of Affairs
The state of the company’s affairs at 31 March 2005 was:

2010 2009
$ $

Assets Totaled 1,157,403 898,032

These were financed by –


Shareholders Funds of 122,956 118,680
Liabilities of 1,034,446 779,352
1,157,403 898,032

As required by section 211 of the Companies Act 1993, we disclose the following information:

Nature of Business
The business of the company is Consultancy. The nature of the company’s business has not changed during the
year under review.

Director’s Interests
The Board received no notices during the year from directors that they had an interest in any transactions or
proposed transactions by the company.
Use of Company Information
The Board received no notices during the year from directors requesting to use company information received in
their capacity as directors which would not have been otherwise available to them.

Financial Statement & Ratio Analysis of TTT Page 23


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

TTT LIMITED
Grant Thornton
Notes to the Financial Statements
For the Year ended 31 March, 2010

Statement of Accounting Policies

Reporting Entity
The financial statements presented here are for TTT LIMITED. The financial statements have been
prepared in accordance with the requirements of the Companies Act 1993 and the Financial
Reporting Act 1993.

Measurement Base
Unless otherwise stated the accounting principles recognized as appropriate for the measurement
and reporting of earnings and financial position on an historical cost basis have been followed.

Specific Accounting Policies


The following specific accounting policies which materially affect the measurement of financial
performance and financial position have been applied:

Fixed Assets are stated at cost less accumulated depreciation. Depreciation has been calculated using
the maximum rates permitted by the Income Tax Act 1994. The depreciation rates used are shown in
the Fixed Asset Schedule.

Taxation expense charged against the profit for the year is the estimated total tax for the year in
accordance with the taxation return to the Inland Revenue Department.

Goods and Services Tax: The financial statements have been prepared on an exclusive basis.

Finance leases effectively transfer to the entity substantially all the risks and benefits incidental to
ownership of the leased item, are capitalized at the present value of the minimum lease value. The
leased assets and corresponding liabilities are disclosed and the leased assets are depreciated using
the maximum rates permitted by the Income Tax Act 1994. Lease payments are apportioned between
the finance charge and the capital repayment in a manner calculated to reflect a constant periodic
charge based on the liability outstanding.

Differential Reporting: The entity qualifies for differential reporting as it is not publicly accountable
and there is no separation between the owners and the governing body. The entity has therefore
taken advantage of all applicable differential reporting exemptions.

Changes in Accounting Policies


There have been no changes in accounting policies which have been applied on bases consistent
with those used in previous years.

Financial Statement & Ratio Analysis of TTT Page 24


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

TTT LIMITED

Grant Thornton
Trading Account
For the Year ended 31 March 2009

Note Mar 2009 2008


$ $ $

Income
Consultancy Income 6,643,647 7,337,381

Direct Costs
Consultants 144,925 38,238
Project Costs 1,422,599 1,522,030
Project Costs MRO 724,475 363,612
Purchases 4,531 10,099
Travel and Accommodation 846,774 711,912
Project Costs – BARMP 324,246 2,160,362
Project Expenses – Bangladesh 419,528 -
ICDC Project Costs 407,398 1,380,254
AMC Project Costs 64,503 -
HENL Project Costs 28,880 -
SESIP Project Costs 590,846 -
VTEP Project Costs 113,199 -
Total Direct Costs 5,091,904 6,186,508

Cost of Goods Sold 5,091,904 6,186,508

Total Gross Profit (Loss) From Trading 1,551,743 1,150,873

Gross Profit Percentage 11.3% 9.5%

Financial Statement & Ratio Analysis of TTT Page 25


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

TTT LIMITED

Annual Report Grant Thornton


For the Year ended 31 March, 2009

The Board of Directors present here their Annual Report including Financial Statements of the company for the year
ended 31 March, 2004.

Trading Results
2009 2008
$ $

Net Surplus/ (Deficit) for the Year 4,276 5,860


Retained Earnings at 1 April, 2003 118,580 112,720
Leaving Available for Appropriation 122,856 118,580

Dividends
The Directors recommend that no dividend be paid for the year.

Transfers
It is not proposed to make any transfer to reserves.

State of Affairs
The state of the company’s affairs at 31 March 2004 was:

2009 2008
$ $

Assets Totaled 1,157,403 898,032

These were financed by –


Shareholders Funds of 122,956 118,680
Liabilities of 1,034,446 779,352
1,157,403 898,032

As required by section 211 of the Companies Act 1993, we disclose the following information:
Nature of Business
The business of the company is Consultancy. The nature of the company’s business has not changed during the year
under review.
Director’s Interests
The Board received no notices during the year from directors that they had an interest in any transactions or
proposed transactions by the company.
Use of Company Information
The Board received no notices during the year from directors requesting to use company information received in
their capacity as directors which would not have been otherwise available to them.

Financial Statement & Ratio Analysis of TTT Page 26


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

TTT LIMITED
Grant Thornton
Notes to the Financial Statements
For the Year ended 31 March, 2009

Statement of Accounting Policies

Reporting Entity
The financial statements presented here are for TTT LIMITED. The financial statements have
been prepared in accordance with the requirements of the Companies Act 1993 and the
Financial Reporting Act 1993.

Measurement Base
Unless otherwise stated the accounting principles recognized as appropriate for the
measurement and reporting of earnings and financial position on an historical cost basis have
been followed.

Specific Accounting Policies


The following specific accounting policies which materially affect the measurement of financial
performance and financial position have been applied:

Fixed Assets are stated at cost less accumulated depreciation. Depreciation has been calculated
using the maximum rates permitted by the Income Tax Act 1994. The depreciation rates used
are shown in the Fixed Asset Schedule.

Taxation expense charged against the profit for the year is the estimated total tax for the year in
accordance with the taxation return to the Inland Revenue Department.

Goods and Services Tax: The financial statements have been prepared on an exclusive basis.

Finance leases effectively transfer to the entity substantially all the risks and benefits incidental
to ownership of the leased item, are capitalized at the present value of the minimum lease value.
The leased assets and corresponding liabilities are disclosed and the leased assets are
depreciated using the maximum rates permitted by the Income Tax Act 1994. Lease payments
are apportioned between the finance charge and the capital repayment in a manner calculated to
reflect a constant periodic charge based on the liability outstanding.

Differential Reporting: The entity qualifies for differential reporting as it is not publicly
accountable and there is no separation between the owners and the governing body. The entity
has therefore taken advantage of all applicable differential reporting exemptions.

Changes in Accounting Policies


There have been no changes in accounting policies which have been applied on bases consistent
with those used in previous years.

Financial Statement & Ratio Analysis of TTT Page 27


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

1 2.5 Ratio Analysis

Ratio analysis includes calculating diferent ratios for the Organization of the figures taken
from its financial statements. The basic purpose of ratio analysis is that absolute figures
often give misleading image so comparison with other figures is necessary which can be
done through ratio analysis.

Profitability Ratio:

Return on Assets:

Net profit after tax x 100


Total assets

2009 2010 2011


ROA 11.3 15.7 23.4

ROA is the most comprehensive measure of firm’s earning capacity. Net profit margin
ignores efficiency concept. ROA takes both perspectives into account. That’s why it is most
widely used indicator for representing the earnings of firm over time period. Higher it is
better it is. An increasing trend of this ratio signifies increased efficiency of management of a
firm to improve upon its earnings capacity.

ROA shows increased trend in 2009, 2010, and 2011 and reaches 23.4% to its peak.

Return on Equity:

Net profit after tax x 100


Share holder’s Equity

2009 2010 2011


ROE 20.37 25.72 9.17

This is another measure of overall performance of firm. This ratio is of great importance to
the present and prospective shareholders as well as the management of the company. As
the ratio reveals how well the resources of a firm are being used, higher the ratio better it is.

Net Profit Margin Ratio and Gross Spread Ratio:

2009 2010 2011


Net profit margin 8.31 12.14 4.19
Gross spread ratio 28.12 35.54 34.51

Net Profit Margin: Gross Spread Ratio:


Net Profit After Taxes x100 Net Mark-up income
Sales Gross Mark-up income

Financial Statement & Ratio Analysis of TTT Page 28


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

Net profit margin measures the percentage of sales revenue remaining after all cost and
expenses, including interest and taxes have been deducted. The net profit margin has also
decreased to considerable low level of 4.19% from previous year’s 12.14%.

Gross spread ratio measures the percentage of sales revenue earned to the gross mark up
after deducting the markup expense. Gross spread ratio has decreased slightly compared to
2010 and it was lowest 28.12% in 2009.

Debt Management Ratios:


Debt Ratio = Total Liabilities / Total Assets

Debt ratios tell us about the firm’s overall debt position and as well as it mixes of equity and
debt. These ratios will also give general idea about the level of financial risk faced by firm.
This ratio measures the portion of total assets financed by the firm’s creditors. Higher this
ratio, the greater the amount of other people’s money being used in an attempt to generate
profits. Even though debt ratio is in decreasing trend but this ratio is very high. Higher this
ratio means higher the financial risk so it’s a negative sign for firm.

Debt to equity compares the debt size as compared to equity. The Debt to equity is lowest in
FY10 and it has increased slightly in 2011. However the deposits make the 90.5% of the total
debt. The ratio of deposit time capital shows the deposit size as compare to the invested
capital. The debt management figures show that the assets of the firm have become less
leveraged till 2010. This was due to the fact that the debt has increased but equity has
increased by a greater percentage in recent years. But it increased slightly in 2011. Equity
increased by 5%in FY11. However, liabilities rose by 6.1%.

2009 2010 2011


Debt to equity 21.52 19.28 19.47
Debt Ratio 0.96 0.95 0.95
Deposit times capital 19.56 16.84 17.64

Portfolio management ratios:


Portfolio refers to the assets held by an investor taken as a group. From the point of view it
means how the firm is maintaining its advances, investments and lending to financial
institutions with respect to its total assets. The portfolio of the firm should be so that it
contributes to overall profitability of the firm.

“Portfolio management deals with managing Advances, investments and lending to financial
Institutions with respect to the total assets of the firm”

Financial Statement & Ratio Analysis of TTT Page 29


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

Advances to total asset ratio:


Advances x 100
Total Assets

2009 2010 2011


54.40 % 54.42% 51.72%

This ratio indicates proportion of advance to total assets. This is main earning assets of firm.
It has two distinct features. It is most risky earning asset and highest return getting asset. As
we know a proper balance should be maintained between risks and return so firm should
120 attain such level of advances. However a rising trend is desirable. It indicates firm ability
to compete in the market and generate sufficient subsequent deposits.

Rate of lending ratio:


This is comparison of mark up earned with the investment, advances and lending to financial
institutions.

Formula:
Rate of lending = Mark up\interest received x100
Investment+ advances + lending to financial institutions

2009 2010 2011


Mark up\ interest earned. 21,191,470 25,783,871 31,046,583
Investment 56,502,210 88,491,564 75,973,238
Advances 149,999,325 171,198,992 192,671,169

Financial Statement & Ratio Analysis of TTT Page 30


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

a. Calculation

Years Working Rate of Lending


2011 31,046,583/271,959,907x10 11.42%
0
2010 25,783,871/263,142,615x10 9.80%
0
2009 21,191,470/218958188x100 9.60%
Comments: In current year, the firm has increased in rata of lending because in this year
mark up income increased and little bit increase in advances, remaining things are nearly
same, so in this year the firm has increased in its rate of lending ratio.

b. Rate of Deposit

Formula:
Mark up expensed x100
Deposit + Borrowing

Years Working Rate of Deposit


2011 20,331,194/314,423,083x10 6.47%
0
2010 16,620,963/294,404,538x10 5.65%
0
2009 15,232,886/247903521x100 6.14%
Comments: The reason of increasing in this ratio is that in this year mark up expenses
increase more as compare to the deposit +borrowing ratio. This is not a good sign for the
firm.

Administrative expense to deposits ratio:

Formula:
= Admin expenses x 100
Deposits Calculation

Years Working Advances to total assets


2011 10,471,399/300,732,858x10 3.48%
0
2010 8,272,587/273,173,841x100 3.03%
2009 5,874,745/239,509,391x100 2.45%
Comments: This is very bad impression for the firm because this ratio should not be
increased from 3%, but as compared to previous year, there is big increase and it crossed the
alarming point that is not better for the firm. The reason of increasing in the admin expense
is that firm has paid more to its employee, rent increase, entertainment allowance increase,
so the firm should take some necessary steps to overcome on it.

Financial Statement & Ratio Analysis of TTT Page 31


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

Advances to deposits ratio:

Formula:
= Advances x100
Deposits Calculation

Years Working Advances to Deposits


2011 192,671,169/300,732,858x100 64.07%
2010 171,198,992/273,173,841x100 62.67%
2009 149,999,325/239,509,391x100 62.62%
Comments: The reason of increasing in this ratio is that firm has more sanctioned loan in this
year as compared to previous year. The reason of increasing in this ratio is the stock market
in which there was no more opportunity for investment because of its recession. Firm should
increase this ratio at least 70%.

Cash reserve ratio:

Formula:
= Cash & balance with Bank x100
Deposits Calculation

Years Working Cash Reserve Ratio


2011 32,687,335/300,732,858x10 10.87%
0
2010 29,436,378/273,173,841x10 10.78%
0
2009 27,859,360/239,509,391x10 11.63%
0
Comments: It is a good sign for the firm that firm is fulfilled the requirement of SBP. This
ratio is considered good because it is between the 6-13%.

2.6 SWOT Analysis on Financial Position of Company

SWOT is stands for strengths, weaknesses, opportunities and threats. SWOT analysis is a
careful evaluation of an organization’s internal strengths and weaknesses as well as its
environmental opportunities and threats. In SWOT analysis the best strategies accomplish an
organization’s mission by exploiting an organization’s opportunities and strengths while
neutralizing its threats and avoiding its weakness. During my internship I also observe these
factors of TTT and made a conclusion which is as follows:

Strengths
• Healthy equity base with continuous growth trend

Financial Statement & Ratio Analysis of TTT Page 32


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

• Strong footage of paid up capital


• Rapid growth in business figures
• Investments also increases over time period
• Operating fixed Assets & Other Assets also increases

Weakness
• Low control over administrative expenses
• Provision on Investments showing increase

Opportunities
• Control over admin expenses leading toward increased profitability
• Efective and efficient utilization of strong financial footage

Threats
• Huge provision against investments / decrease in value of investments
• Increasing trend of total expenses
• Decreasing trend in profitability

Financial Statement & Ratio Analysis of TTT Page 33


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

2.7 Projected Financial Statement for 2012

2012 (US$)

Income
Consultancy Income 7,643,647

Direct Costs
Consultants 244,925
Project Costs 2,422,599
Project Costs MRO 824,475
Purchases 9,531
Travel and Accommodation 946,774
Project Costs – BARMP 424,246
Project Expenses – Bangladesh 519,528
ICDC Project Costs 507,398
AMC Project Costs 74,503
HENL Project Costs 38,880
SESIP Project Costs 690,846
VTEP Project Costs 690,846
Others 213,199
Total Direct Costs 7,607,750

G. Total 15,251,397

Financial Statement & Ratio Analysis of TTT Page 34


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

2 2.8 Financial Analysis

Financial Analysis of the business of the customer constitutes the most important part of a
proposal. Firm makes an analysis on liquidity, leverage and profitability of his business.
Finally along with other information firm must himself gives his comments and
recommendations for the proposal.

2.9 Research Methodology

I developed a survey questionnaire to collect my primary data. I used close ended & open
ended both kind of question in the questionnaire. The questionnaire was developed by me and
Professor Dr. Abdul Hanna Chowdhury approved it. I used two sources in my research and
the sources are:

Primary Source: To make a beginning for my research, I took 03 (Three) years of TTT’s
accounts statement section as my representative sample. I took their idea, opinion and view
about my topic through questionnaire survey. This helped me to get my required primary
data.

Secondary Source: I used internet and search websites, links, e-newspapers, e-magazines, e-
books etc. to get better information on the topic. I also checked for some references like
journals, newspaper articles, and publications etc. for necessary data.

Problems

I did my internship in TTT, Dhaka Branch, Bangladesh. I have analyzed some problems in the
firm.
• Staf strength is low
• It has a very congested space.
• Professional jealousy among the employees.
• Employees are not getting benefits as compared to their work.

2.10 Recommendations

I spent Six weeks of my internship in Dhaka Branch. During these weeks, I felt myself to be a
part of TTT. Even, this was my first experience of working in a international organization.
Before this I know a little about the training management firm, its working system and
environment, so I learned a lot from this experience. Based on my experience & observation
regarding the operations and policies of TTT, there are some recommendations which
include short term as well as long term issues for the improvement.

There is no efficient method introduced by TTT for his assessment of performance of


employees. Promotions are completely relying on higher management like managers est.’s
there can be some sort of favoritism. So to avoid all this, there should be a proper method to
judge the employees.

TTT needs to use more marketing channels to make the public aware of its services. In the
age of competition TTT has to realize the importance of marketing.

Financial Statement & Ratio Analysis of TTT Page 35


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

TTT should continue to expand its business, by increasing its portfolio through aggressive
market penetration strategies.

TTT needs to improve its website. More information relating to financial performance of the
service should be available on the website.

TTT should evolve a very serious management policy to attract multi national corporations
as its clients. This action, if actualized, would not only prove to be highly profit generating,
but it would also contribute a lot towards TTT’s image building.

The number of women hired by TTT is very less. TTT should employ more women. Moreover
it should also recruit women for working in “Credits”.

One of the most pressing needs of the time is to advertise TTT in the electronic media. TTT
has not, till date, employed advertisement in electronic media as a full fledge marketing tool.
I think it is high time that TTT does this.

Financial Statement & Ratio Analysis of TTT Page 36


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

2.10 Conclusion

The two months spent at TTT Dhaka Branch were, no doubt a source of great learning for me
about a lot of things particularly working in TTT’s atmosphere. It’s my quite first experience
to do work practically in some management services organization. This practical training
program did not only help me acquire loads of knowledge about the predominant functions
performed by management companies, but also imparted a lot of training as regards the set
of behavioral traits which distinguish a particular person from the rest of the lot in a
professional environment.

During my internship I concluded that currently TTT has a high competency and is not facing
any type risk. Due to highly trained professionals it is used to make progress leaps and
bound. The main objective of firm is to build strong relationship with the customers and
make them believe that TTT is right for them by providing efective and efficient services. It
has also created a strong goodwill and trust in the worldwide. At this point it is significant to
write a word of gratitude for the institute, which makes it sure, that all the students get an
exposure to practical life in relatively well-reputed organizations.

I must underscore the fact that writing this internship report was an evenly memorable
experience as actually doing the internship. I honestly tried my level best to come up with an
original piece of writing that could serve as a vivid proof of the fact that students at
………………………..college name……………………….., University ………………….name, Dhaka, are
certainly doing the internship.

Financial Statement & Ratio Analysis of TTT Page 37


FINANCIAL STATEMENT & RATIO ANALYSIS OF TTT

Appendix: TTT NZ Registration

Financial Statement & Ratio Analysis of TTT Page 38