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Internship Report

On
“Financial Position Analysis of Four H Group.”
-A study on Four H group, Monsurabad, Chittagong.
[The internship is a compulsory course of fulfillment of BBA program at Port City Interational
University]

Submitted To

Sharmin Akter
Lecturer Of
Department of Business Administration
Port City International University

Submitted By

Name : Md. Sharik Islam


ID No : BBA-004-05-166
Program : BBA
Major : Finance
Department : Business Administration
LETTER OF TRANSMITTAL

Dated:

To
Sharmin Akter
Lecturer
Department of Business Administration.
Port City International University
Chittagong.

Subject: Submission of Internship Report.

Dear Sir,
With due respect and honor, I am submitting my Internship report on “Financial Position of Four
H Group.”
-A study on Four H group, Monsurabad, Chittagong, based on my three months internship. This
report has been submitted as an important requirement of BBA Curriculum.

The internship program has provided me with an opportunity of having an expose of working
environment and on the job experience of Accounts and Finance departments of one of the best
established Garments Exporters in Bangladesh. I have acquired a sound knowledge and
understanding on the basic system of Garments export. I hope this knowledge and experience
will help me a lot in a diverse way to perform my responsibility in an effective manner.

I hope that you would be so kind to accept my report and obliged thereby.

Sincerely yours

……………………
Md Sharik Islam

ID : BBA-004-05-166
Major: Finance
Department of Business Administration
Port City International University

SUPERVISOR’S CERTIFICATE
This is to certify that the internship report on “Ratio Analysis of Four H Group.” -A study on
Four H group, Monsurabad, Chittagong. In the valid record, the report is done by Md. Sharik
Islam. A student of Port City International University, as a part of fulfilment of the requirement
of BBA program from Port City International University.

The report has been prepared under my guidance and is a record of the bonfire work carried
successfully.

……………………………
Sharmin Akter
Lecturer
Department of Business Administration.
Port City International University
Chittagong.

STUDENT’S DECLAREATION
I hereby declare that, Myself Md. Sharik Islam , ID No: BBA-004-05-166, the student of Port
City International University (Major in Finance). I have completed my Internship Program from
Four H Group. I have prepared this report on Financial Position of Four H Group based on
annual report and other information. In this report I have included all the information, which I
got during my internship period. I have written this report on the basis of my work experience
and observation during the internship period.

I also declare that this report is my original worked and prepared for academic purpose which is
a part of my BBA 4th year and the paper may not be used in actual market of scenario.

………………………..
Md. Sharik Islam
ID : BBA-004-05-166
Major: Finance
Department of Business Administration
Port City Inernational University

ACKNOWLEDGEMENT

I would like to express my deep gratitude to all those who have been helpful in the preparation of
this internship report. It certainly would not have been possible without the help of many people
and I would like to acknowledge my pleasure to all those who had helped me during this entire
process.
First of all, I would like to grateful to the almighty ALLAH, the most merciful and the
benevolent and to his holy prophet Mohammad SM (peace be upon him) who is forever a torch
of gaudiness and knowledge for humanity as a whole, who has enable me to complete this report.

The internship report has been prepared as an internal part of BBA program at National
University of Bangladesh. I am indebted to a number of person for their suggestion, direction
and co-operation that have enable me to prepare this report.

I am grateful to my respected teacher and supervisor Sharmin Akter for her help and cordial
guidance to my work.

I am very much Oblige to Md. Ziaur Rahman, Manager (Accounts) of Four H group, for
support me to collect information and necessary documents.

It will be unwise on part of me if I don’t acknowledgement the superb support of all the officers,
especially the executive officers of accounts departments of Four H group.

I am also thankful to all the staff of Four H group, I am grateful to each and every person of Four
H group, Monsurabad, Chittagong. I really enjoyed this three months.

EXECUTIVE SUMMERY

The report is on the Financial Position Analysis of Four H group. This is necessary for the
successful completion of the BBA program. This report is made with the help of Four H Group
Executives and gaudiness of supervising Manager and some third party sources that are being
appropriately cited.
It is prepared on the basis of my two months practical experience from 10-10-2017 to 10-01-
2018 at Four H Group. The focal point of the report is to overview the whole activity of Four H
group.

Here I discussed about the “Financial Position of Four H group.” To discuss this, I have also
given information about the vision, mission, goal, objectives, core values and all related
information of Four H group. By doing this report I am able to gain a vast knowledge hoe to
calculate all financial ratios and evaluate the performance of a company.

To Identify its strength and weakness and to analyses its performance based on the available
data, the report is mainly divided into five chapters.

The First chapter of the report describe the background of the report, its scope, objectives and
methodology.

The Second chapter deals with organization overview of Four H Group, Its history and
development.

The Third chapter describe my job responsibility and observation in Four H group.

The Fourth chapter is Financial analysis and brief discussion about financial performance of
Four H Group.

The Fifth chapter is concern with findings, recommendation and conclusion.

TABLE OF CONTENTS

Topic Page No.


Letter of Transmittal i
Supervisor’s Certificate ii
Students Declaration iii
Acknowledgement iv
Executive Summary v
(Chapter-01)
INTRODUCTION
1.1 Origin of the report 02
1.2 Objectives of the report 03
1.3 Methodology 04
1.4 Scope of the report 04
1.5 Limitations of the report 05
(Chapter-02)
ORGANIZATIONAL PART
2.1 An overview of Four H group 07-08
2.2 Corporate Vision 08
2.3 Corporate Mission 09
2.4 Values 09
2.5 Overall Strategic Objectives 10
2.6 Ownership Structure 10-11
2.7 Strategic Priority 11-12
2.8 Organogram of the report 12
2.9 Products and Services 13-17
(Chapter-03)
Job responsibility and Observation
3.1 My Job Responsibility 19-20

3.2 My Observations 20-21


(Chapter-04)
Financial Analysis of Four H Group
4.1 Starting

4.2 Income Statement

4.3 Retain Earnings

4.4 Balance Sheet

4.5 Ratio Analysis

4.5.1 Liquidity Ratio


4.5.2 Activity Ratio
4.5.3 Debt Ratio
4.4.4 Profitability Ratio
4.6 Weighted average cost of capital

4.7 Cash flow Statement

(Chapter-05)
FINDINGS, RECOMMENDATIONS AND CONCLUSION
5.1 Findings 41

5.2 Recommendations 42

5.3 Conclusion 43

Chapter – 01
INTRODUCTION
o Origin of the report

o Objectives of the report

o Methodology

o Scope of the report

o Significance of the report

o Limitations of the report

1.1 Introduction

This internship is a part of the Bachelor of Business Administration (BBA) program that
provides an on-the-job experience to students. I was placed as a trainee at Four H group,
Munsurabad, Chittagong, which is also head office of Four H Group. This internship program
was my very first on-the-job exposure and provided me with learning experience and knowledge
in several areas. During my internship period, I was able to get accustomed to the working
environment of Four H Group. As the internship continued, I not only learned activities and
operations of the garments industry, but I also gathered some knowledge about basic business
activities of ready made garments. The Ready-Made Garments (RMG) industry occupies a
unique position in the Bangladesh economy. It is the largest exporting industry in Bangladesh,
which experienced phenomenal growth during the last 25 years. By taking advantage of an
insulated market under the provision of Multi Fiber Agreement (MFA) of GATT, it attained a
high profile in terms of foreign exchange earnings, exports, industrialization and contribution to
GDP within a short span of time. The industry plays a key role in employment generation and in
the provision of income to the poor. Nearly four million workers are directly and more than
twelve million inhabitants are indirectly associated with the industry. Over the past twenty-five
years, the number of manufacturing units has grown from 180 to over 4000. The sector has also
played a significant role in the socio-economic development of the country.

Garments industry is the largest export industry for our country and it contributes 75% of total
export. The industry is associated with its strength, weakness, threat and opportunity.

Four H Group pursues decentralized management policies and gives adequate work freedom to
the employees. This result in less pressure for the workers and acts as a motivational tool for
them, which gives them, increased encouragement and inspiration to move up the ladder of
success.

Over all I have experienced a very friendly and supporting environment at Four H group, which
gives me pleasure and satisfaction to be a part of them for a while. While working in different
departments of this company I have found each and every employee too friendly to me to
cooperate.

They have discussed in detail about their respective tasks. I have also participated with their
works.

1.2 Origin of the Report

Internship program is the most important period for a BBA student. The duration of internship program
is 3 months, which carries a best learning process to know about the organization and cope up the
environment in such a way like professional employees. The experience that got by an intern during the
internship period will make them more smart and professional in their future job sector. I was started my
internship at Four H Group, Munsurabad, Chittagong, from October 10, 2017 and ended in January 10,
2018

1.3 Objectives of the Report


The main objectives of the report is fulfillment the requirement of BBA Program. For this I have
to attach with an organization and I choose Four H Group. I have acquired some practical
knowledge along with my academic knowledge. The objectives of the report may be viewed as-
 Broad Objectives
 Specific Objectives

1.3.1 Broad Objectives

The broad objective of the report is to complete the internship program and submit a report. As
per requirement of BBA program of National University of Bangladesh, one student must need
to work in a business organization for three months to acquire practical knowledge about actual
business

1.3.2 Specific Objectives

 To present an overview of Four H Group.


 To find on-the-job experience.
 To develop the theoretical knowledge by practical knowledge.
 To observe the major outline of Ready Made Garments export.
 To observe export market of Four H Group.

1.4 Methodology

The report is descriptive in nature. To prepare a report gathering data is very important. The
information was collected from both primary and secondary sources of data. Regarding the
information required was collected within the organization.

1.4.1 Primary Data

 Practical desk work.


 Face to face conversation with the respective officers.
 Collect Data from Audit department.

1.4.2 Secondary Data

 Study on Annual Reports of Four H Group.


 Online data from Four H Group website.
 Analysis several articles related on financial analysis importance through internet.

1.5 Scope of the Report

As I was working in the Four H Group I got the opportunity to learn different part of production
operation of Readymade garments Product.. As my main concern was to identify the problems
and prospects of RMG products, I spent much time in this purpose. As I was attached to the
workforce in this Company, I had to deal with so many workers who are working in the company
to the problems they face their. Moreover, for gathering information about prospects of RMG
products I conducted with my supervisor and the General Manager (Administration division &
Company secretary).

1.6 Significance of the Report

As a student, I have learned about a Ready Made Garments Industry. I also have learned the
report writing, as a great deal of theory is included in this report. It will be also benefited for the
people who are interested to know about Four H Group. Here I tried to evaluate the financial
performance and position of Four H group through different ration analysis which will helpful
for he user of this report to evaluate financial position of Four H Group.
1.6 Limitations of the study

1. The study was conducted only within the local unit of Four H Group.

2. The duration of the study was very limited to collect sufficient data.

3. Every organization has its own secrecy that is not revealed to others. While collecting data I
did not get some information, which is very essential to prepare my report.

4. Due to lack of experience, there is a chance of having some mistake in the report though
best effort can be applies to avoid any kind of mistake.

5. My supervisor and the workers are very busy so that some times they did not give enough
time to me.

Chapter- 02
ORGANIZATIONAL PART

o Overview of Four H Group


o Operation Management
o Distribution Management
o Current products
o Current Buyers
o Four H Group future projects
Four H Accessories

2.1 Overview of Four H Group

At the zero hour of Four H Group, there was a strong emotion with a belief to grow the business.
2003 would be marked as a founding year of Four H Group. Four H Fashions Ltd., starting with
86 machines, a single facility, turns into a Group of companies. With a view to analysis of the
facts & figure of Four H Group, we are furnishing the following information. Four H an
integrated manufacturer and exporter of premium quality under wear and intimate wear in full
range of fashion and casual categories in all of the seasonal, ages, sizes categories for ladies, men
and for the children. To name of you these items include brief, bikini, hi cut, thong, hipster,
thermal top–bottom, Nightwear, came, etc. Established in 2003, Four H host as integral group
concern linked at vertically and horizontally in an industry premises configure with all of
necessary infrastructure and facility such as factory building having in total of one million square
feet working floor, 5000 KW per hour capacity are power back up. ETP to calm a group as an
industrial assurance and reveal other like inspection room for its buyer and their representative, it
has some design and development section with top of the line and master expertise and computer
added marking system. To help this in the tailoring expertise in the minimizing re-suggest of
fabric optimizing and ensuring identical re-production including sample. It includes advance
electric system to generate market for cutting fabric. Confirming and locally as well as globally
accepted a factories and labor laws a vision and invention. Four H Group graded a height of
ethical and group practices for its nearly 13,164 employees and staff members. It maintains a
very high order of industry relation

Section/ Department Number

Head Office 682

Factory 14758

Ware House 495

Security & Others 510

Total Man power 16445 Persons.

Four H Group provides hygienic canteen and supreme medical facilities, care for maternity
privilege & childcare for the working of children. And of course it provides other compensation
and remittance.

Four H offer an atmosphere, face and comfortable to successfully fight occupation, hazard the
situation like fire incident operational skills and share common attitude towards right rationality
and productivity, the optimistic capacitate laboratory to conduct highly calibrated test protocol to
ensure unlimited standard of dyeing quality its buyer seek for. It has testing facilities like spectra
photo meter, rubbing, fastness, both dry and wet condition, perspiration, color and washing
fastness, stretch and recovering of spandex fabric etc. It has input water treatment facility a
testimony to Four H is share responsibility to the environment all of its dyeing refuses are
properly challenges into this 100 Quebec meter of per hour capacity. A few an treatment plan of
most contemporary technology with large dehydration it clam a view end chemically and
biologically before realizing that back into the eco system i save manner.
On the way to itself judging the friendly nest to the workers government has awarded 4H best
knitwear factory in Bangladesh export trophy winner GOLD and SILVER in 05-06/06-07/08-09
and Govt. certified as most complaint company with WRAPS accredited , Sexed registered ,
Organic certified. Four H Group is fully vertical to fit the export demand of using highly
sophisticated machine of world’s most luxury and demanding brands. It is manufacturing all
righting of knit fabric such as single and double jersey , cotton eglantine , rib cotton eglantine ,
interlock, thermal and many more.

2.1.1 Vision

Our vision is to create more employment opportunity for our society. Alone side employment
generation we would like to launch new technology in our production sites to compete the
growing competition.

2.1.2 Mission

We are strongly commitment to provide a safe healthy. Socially and Environment friendly
workplace to all of our employees and valued customers in our on going apparels manufacturing.
We are working to set-up this project fully Sound in Social Compliance and Environment
Compliance as well as supply chain security activities as per Legal requirements along with
following the customer’s requirements. In this connection we start work to develop HRM
program for optimum utilization of Manpower resource by the training & development programs
to meet the needs of Global Markets as of the export oriented Manufacturing organization in this
country to maintain highest standard of business practices.
2.2 Operation Management

The objective of 4H supply chain management is to balance the flow of materials with customer
requirements throughout the supply chain, such that costs, quality and customer service are at
optimal levels. JIT emphasizes reduction of waste, continuous improvement. SCM encourages
cross-training, satisfying internal customer demand, moving products through the production
system quickly, communicating and customer demand forecast and production schedules up
supply chain and seeks to optimize inventory levels across the entire supply chain.

The supply chain management of 4H outcomes of better customer service, lower cost, and higher
quality should be starting to sound familiar. To sustain and improve competitiveness, firms must
offer higher quality product and service than their compaction. Through better process
integration and communication, trading partners along the chain realize how poor quality
products and service can case negative chain reaction to take place, such as grater level of safety
stock throughout the supply chain, lost time and productivity due to product and component
repairs, the increased cost of customer return and warranty repaired and finally loss customers
and damage to reputations.

2.2.1 Four H Group Operation Team


Managing Director G. S. Jamil (E-mail:
jamil@fourhgroup.com)
Business Planning Team A.M. Alamgir (E-mail:
alamgir@fourhgroup.com)
M. A. G. Hannan (E-mail:
hannan@fourhgroup.com)
Mohammed Feroz Haider (E-mail:
feroz@fourhgroup.com)
Md. Shahidul Islam (E-mail:
shahid@fourhgroup.com)
Anowarul Kabir Chy (E-mail:
anowar@fourhgroup.com)
Merchandising & Operational Akbar Siraj (E-mail:
Team akbar@fourhgroup.com)
Md. Sharafath Ullah (E-mail:
sharafath@fourhgroup.com)
Shakil Ahmed (E-mail:
shakil@fourhgroup.com)
Social Compliance Monitor Shahed Iqbal (E-mail:
Dept. iqbal@fourhgroup.com)

Accounts & Finance Sahadat Uddin Sa'dat (E-mail:


sahadat@fourhgroup.com)
Md. Shahidul Islam (E-mail:
accounts@fourhgroup.com)
Commercial Jasim Uddin Ahamed (Email:
jashim@fourhgroup.com)
Md. Shahed Ali (Email:
import@fourhgroup.com)
Nowshad Chowdhury (Email:
mitu@fourhgroup.com)

Technical (Sample & Pattern) Md. Abdur Razzak (Email:


razzak@fourhgroup.com)
Md. Azad Bhuiya (Email:
azad@fourhgroup.com)
HR & Admin Md. Mahbubur Rahman (Email:
mahbub@fourhgroup.com)
Ms. Naina Islam (Email: naina-
hr@fourhgroup.com)

2.3 Distribution Management

Our 4H Company use own transport service from factory to cargo ship and this finished product
are distribution in many countries.
2.3 Procurement Management

The primary goal of 4H Group of purchasing are to ensure uninterrupted flows of raw materials
at the lowest total cost, to improve quantity of the finished goods produced and to optimize
customer satisfaction. Purchasing can contribute to these objectives by actively seeking better
materials and reliable suppliers, working closely with and exploiting the expertise of strategic
suppliers to Improve the quality of raw materials.

2.4 Current Products

User Item Product Picture

Men Boxer,T-shirt

Women Bra,Panty,Sleepware

Boys T-Shirt, Sleepware


Girls Sleepware, Lingerie

Baby Babyware/Body suit

2.5 Current Buyers

Client Name Logo

C&A

Calvin Clain

Celio

Etam

H&M

Lamour International

Lindex

Loblaw’s
Next

Oviesse

Primark

Client Name Logo

PVH

Tesco

WM
2.6 Four H group future projects

Divine Design-2

 Construction Started in June 2015


 Estimated completion in June 2017
 Total swing line: 30 Line
 15 for Men's Underwear
 15 for Lingerie
 Production Capacity: 1560000 pcs

Four H Composite

 Construction Will Start in 2016


 Estimated completion in 2018
 50000 Square Feet
 40 Swing Lines
 Production Capacity: 2080000 pcs
 30 Knitting Machines
 Production Capacity: 15000 kg per day

Trinity Apparels Ltd. (Myanmar)


 Project started in 2015
 Estimated completion in 2016
 20 Sewing Lines
 400 Machines
 Production Capacity: 1040000

2.7 Four H Accessories

Poly Bag

 Poly Blower Machine 2


 Poly Printing Machine 1
 Poly Bag Cutting/Sealing.
Label

 Rotary Printing Machine 3


 Cutting/Folding Machine 2
 Packing Machine 1

Corrugated Carton Box

 Paper Cutting
 Glue Pasting
 Fly Pressing
 Dye Cutting + Manual Print

Elastic
Chapter-3
JOB RESPONSIBILITY AND OBSERVATION

o Job Responsibility
o Job Observations
3.1 Job Responsibility

I was assigned at the Four H Group, Munsurabad, Chittagong, to complete my internship


program. During my three (3) months internship program I enjoyed the work at the bank but
most importantly I learned how to work under pressure with great responsibilities. Throughout
this time I have got the opportunity to work with different department of Four H Group. There
are various departments in Four h group but I specifically worked on following sector:

 Cash
 Banking
 Billing
 Taxing

3.1.1 Cash Department

The first week I was in the Cash Department. Generally they don’t usually put interns in this
department but I was lucky to see firsthand what happens behind the counter. I did have much
responsibility in that department as I was not to mess with their hectic and hasty transactions, but
they eventually make me habited in cash. My responsibilities in this department were just to
assist them in any way possible. I learned the following from this department:

 Counting money in various ways


 Use the counting machine
 Input transaction in Tally software
 Counting the vouchers
 Maintain check register book in proper way

3.1.2 Banking Department

As Four H group is concern with a large scale of Ready Made Garments Products, It has a
banking department larger than I thought because most of the import and export related
transaction take place through bank. It is one of the most important departments I worked on. I
worked here more days than other departments and the major learning from this department:
 Entry monthly transaction through LC in excel sheet.
 Calculation of loss or gain from exchange of USD.
 Dissevers salary into respective accounts.
 Entry monthly transaction through LC in Tally software.

3.1.3 Bill Department

This department is a sensitive department as this department is responsible to pay the suppliers
through checking all the related documents attached with bill. I worked in this department more
than 15 days and I learned here:

 Checking bills in a proper way.


 Adjust the bill with inter suppliers.
 Making journal entry in tally software.
 Making payment through check to suppliers.

3.1.4 Tax department


Tax is a compulsory payment to government is thus important sector for any organization. A
export related organization must pay a certain amount of taxes to govt. and its need to be
calculated. Working for 15 days in this department I learned about:

 Source Tax.
 Taxation system for Ready Made Garments Industry.
 Deduction of tax from party payment.

3.2 Observation

Working at Four H Group was a great experience for me. I have learnt many things from them.
From my little knowledge what I have observed and some recommendations are as follows:
It was very interesting working at a Garments Industry. The people there are really nice and
talented. The things that I have noticed and observed are:

 Work environment is very friendly and employees are co-operative.


 Employees are active and sincere to their assigned job responsibilities.
 Work is never left pending for the next day unless it is absolutely necessary.
 The work process could be made faster with better computers and operating systems.
 There is always a rush of customers so there is no standard on what the employees do
throughout the day. The work activities of an employee are set, but what to do when
varies along the day.
 The work activities are always set and divided for each of the employees. This is the way
it should be, but when I saw it firsthand it was remarkable. Each and every employee has
a certain set of responsibilities. He/she carries out those responsibilities throughout the
day. It is also easy to assign duties that way. Even though this is the case, I often saw
other staff members helping each other out.
 There is less coordination between casual staffs like tea boy, peon and cleaner
Chapter 4

Financial Analysis

4.0 Starting

The three main financial statements are the profit and loss statement (the income statement), the
balance sheet, and the cash flow statement. Each of the financial statements may show a different
perspective of the company, but each financial statement is designed to show you the money
where the money came from, where the money went, and where the money is right now.

Applying financial ratios and accounting formulas to the financial statements can provide
valuable insight into the company’s profitability, financial strength, and efficiency of operations.
Findings
Recommendation

Garments sector plays a very important role to earn foreign exchange to our country. A large
number of foreign money comes Garments sector plays a very important role to earn foreign
exchange to our country. A large amount of foreign money comes from the exporting of
Garments. However a large number of workers maintain their live on this sector. Specially the
women. So, government should take special nursing in garments sector. That’s IT sportswear ltd
is one of the leading export oriented garment in the country though its overall performance is
well Some extra points are given to accelerate the present position :

 The authority should be positive about audit. They have to realize that audit gives them the
opportunity to justify their work.
 That’s It sportswear Ltd. should follow international standard to making financial position and
also analyzing the balance sheet through various ratios for determining efficiency, profit-earning
capacity, financial solvency etc.
 Cost control system must be implemented at every stage in the organization.

 They should determine yearly inventory cost like ordering cost, carrying cost acquisition cost
separately.

 They should determine optimum level of inventory.

 They should computerize their every level of inventory.


For purchasing raw materials, the company should follow acquisition procedure strictly.
 Inter project fund transfer should be kept by using proper accounting standard.
 Adequate training facilities provided for personnel for development .Should follow a specific
inventory costing method, in the context of rising trend in raw materials price.

 Sound communication should be established between managing directors to Head office


auditors. Steps to be taken to provide proper data & information.

 Most of the officer has to motive to teach every employees and researcher of their own
inspiration.

 A specific department for training and research, which will provide adequate training and
research facilities for personnel for development.

 Every department will communicate their problem with other department of the company

 Medical facilities should be improved.

 Effective personnel management should be set up.

 Proper steps should be taken to stop power failure.

 Various motivations will be provided to workers for sound production.


Conclusion

After we do all the analysis and strategic plan from various aspects we can believe that That’s It
sportswear ltd. will go and sustain competitively in the market. Because from our financial plan,
income statement, ratio analysis we see that the company has good aspect in the future just it
need to catch up in some points where it can improve further more. As day by day the sales
quantity of the company increased it can offer better product with a competitive price to the mass
also. Furthermore day by day this company is looking forward to hire some expert employee
who can really turn out the company as number one in the country. We as a team give value in a
good customer service, trustworthy, honesty and quick feedback and we believe that can push
our company in a place where we want see after a certain period.