An Overview of a Non-Bank Financial Institution

COMPANY OVERVIEW OF MIDAS FINANCING LIMITED

BASED ON A 2014-2018 STUDY OF

COMPANY ACTIVITIES

COMPANY OVERVIEW OF MIDAS FINANCING LIMITED

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An Overview of a Non-Bank Financial Institution

BASED ON A 2014-2018 STUDY OF

COMPANY ACTIVITIES

Prepared for:

Md. Humayun Kabir

Lecturer

Department of Business Administration

East West University

Prepared by:

Ibrahim Mahmood Id: 2017-2-10-110

Munira Akter Id: 2017-2-10-252

Musharrat Rashid Mila Id: 2017-2-10-131

Afsana Mahmud Pollobi Id:2017-2-10-098

Asif Hayder Arnob Id-2016-3-10-116

Md. Salman Rahman Chowdhury Id:2017-1-10-298

April 04, 2019

East West University

Letter of Transmittal

4th April, 2019

Kamrul Hassan
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An Overview of a Non-Bank Financial Institution

Lecturer

Department of Business Administration

East West University

Subject: Submission of the report on “COMPANY OVERVIEW OF MIDAS

FINANCING LIMITED”.

Dear Sir,

It is our pleasure to submit this report based on “COMPANY OVERVIEW OF MIDAS

FINANCING LIMITED”, which was assigned to us as a requirement for the course
curriculum.

We have tried our best to make an enrich report and we are glad to submit you for better
consideration. The writing of this report was a great experience to us.

Thank you for your guidance and constant supervision to fulfill this report.

Yours Sincerely,

Ibrahim Mahmood Id: 2017-2-10-110

Munira Akter Id: 2017-2-10-252

Musharrat Rashid Mila Id: 2017-2-10-131

Afsana Mahmud Pollobi Id:2017-2-10-098

Asif Hayder Arnob Id-2016-3-10-116

Md. Salman Rahman Chowdhury Id:2017-1-10-298

Asif Hayder Arnob Id-2016-3-10-116

ACKNOWLEDGEMENT:

To complete our assignment, we had to take help of some respected persons without whom
we would not be able to build our plan. First of all, we are showing our respect to Sir
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An Overview of a Non-Bank Financial Institution

Shafique-ul-Azam Managing Director for his kind help and guidance throughout many
lectures and consults. As well as we want to give thanks Md. Abdul Wadud, FCA
GM (F&A) and Co. Secretary of Midas Financing Ltd for his kind advice, cooperation and
also valuable suggestions. We would like to extent Mohammod Monirul Islam General
Manager (Business Development) of Midas Financing Ltd for his effective monitoring and
also accurate direction. To complete this assignment, we have taken assist from different
books and websites, East West University’s computer lab and library gives us great help to do
the assignment. There are also other persons regarding classmates, friends and teachers
without their help we would not be able to do this so easily.

We would like to thank each and every person who inspired us in completing the
assignments.

EXECUTIVE SUMMARY:

The micro-credit is seen as the most effective development tool nowadays. The institutions in
Bangladesh have a pioneering and leading in this sector worldwide and are recognized
offering the most diverse product line. With the time many Income Generating Activities
moved with the help of micro credit to the stage of entrepreneurship. Nonetheless there was
years ago a big lack for those who have been released of micro credit. This is why MIDAS
Financing Limited started in July 1993 its Micro Enterprise Development Initiative in short
MIDI. The idea was to support graduated entrepreneurs with financing enabling them
investing in their business and give them further perspectives. Additionally, the training tools
of MIDAS give their clients the ability to enhance their business skills.

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An Overview of a Non-Bank Financial Institution

TABLE OF CONTENTS
ACKNOWLEDGEMENT:......................................................................................................4
EXECUTIVE SUMMARY:....................................................................................................5
OBJECTIVES OF THE STUDY............................................................................................7
Main Objectives:....................................................................................................................7
Specific Objectives:...............................................................................................................7
Limitation of The Study:........................................................................................................7
COMPANY OVERVIEW:......................................................................................................8
Historical Background:..........................................................................................................8
ABOUT THE COMPANY:.....................................................................................................8
PRODUCT AND SERVICES:................................................................................................9
Deposit Schemes....................................................................................................................9
Loan & Others Schemes.........................................................................................................9
BASIC BUSINESS ACTIVITIES:.......................................................................................10
ANALYSIS- GROWTH RATE CALCULATION.............................................................11
FINDINGS:.............................................................................................................................16
RECOMMENDATIONS:......................................................................................................17
Promoting Organizing events:..............................................................................................18
CONCLUSION.......................................................................................................................18
APPENDIX.............................................................................................................................21

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An Overview of a Non-Bank Financial Institution

OBJECTIVES OF THE STUDY

Main Objectives:
The main objective of the report is to know the business organization “MIDAS Fnancing
Limited” and see the relationship between theory and practice. Some othe main objectives are
to know about their business activities, how they operate the business and make connection
with the customers.

Specific Objectives:
 To know how to prepare report on a corporation.
 To know the detail information about the organization.
 To know about the financial activities of the organization.
 To find out the differences between theory and practice.
 To acquire knowledge about the management strategy of MIDAS Financing Limited.
 To fulfill the “Managerial Finance (FIN101)” course requirement.

Limitation of The Study:

 Our main limitation was we don’t get the data from primary source.
 As we also prepare report based on secondary data collected from different website.
All the data are not available in secondary sources.
 Lack of time we can’t visit the organization.

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An Overview of a Non-Bank Financial Institution

COMPANY OVERVIEW:

Historical Background:
MIDAS Financing Limited (MFL) is a Public Company Limited by share, incorporated on
May 16, 1995 under the Companies Act 1994 and authorized to commence its business
operation in Bangladesh as per certificate of commencement of business. The Company
obtained license from Bangladesh Bank on October 11, 1999 to operate as a Non-Bank
Financial Institution under the Financial Institution Act 1993. The Company is a listed
Company with Dhaka Stock Exchange Ltd. since October 26, 2002, with Chittagong Stock
Exchanges Ltd. since July 27, 2004 and its shares have been quoted and transacted in stock
exchange in dematerialized form through Central Depository Bangladesh Limited (CDBL)
from March 23, 2005. On June 24, 2012 the registered office of the Company has been
shifted from Nahar Green Summit (2nd Floor) House No. 43, Road No. 16 (New)/ Old 27,
Dhanmondi, Dhaka-1209. MIDAS Investment Ltd., a subsidiary Company of MIDAS
Financing Ltd. holding 99.99% shares was incorporated on 9th April, 2012 under the
Companies Act XVIII of 1994 bearing registration number C-100772/12 with a view to
operating Merchant Banking Business. The Merchant Banker Registration Certificate is yet to
be received from Bangladesh Securities and Exchange Commission.

ABOUT THE COMPANY:

The vision of this company is to be a leading financial institution of the country with
diversified financial services contributing towards development of an enterprising society.
On the other hand, the mission of the company is to provide value added financial services to
valued customers, strictly maintaining the ethical standard in financial operation.
As per the provisions of Articles of Association, the Board of Directors holds periodic
meetings to resolve policy issues and strategies for achieving the organizational goal by the
Management. The Board sets Vision, Mission and Objective of the Company as per
guidelines of Bangladesh Bank and all other regulatory authorities. The Management
operates through further delegation of authority to the heads of departments. The
Management is responsible for preparation of segment plans for every investment center
Mohammed Nasir Uddin Chowdhury is the chairperson of this company. The other directors
of this company are Rokia A. Rahman, M. Hafizuddin Khan, Ali Imam Majumder, Siddiqur
Rahman Choudhury, Abdul Karim, Gulam Rahman, S.M. Azad Hossain, Md. Shamsul Alam,
Md. Shahedul Alam, Md. Atiar Rahaman Ansary.

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An Overview of a Non-Bank Financial Institution

PRODUCT AND SERVICES:

MIDAS FINANCING LIMITED (MFL) is a Public Company Limited by share, incorporated
on May 16, 1995 under the Companies Act 1994 and authorized to commence its business
operation in Bangladesh as per certificate of commencement of business. The Company
obtained license from Bangladesh Bank on October 11, 1999 to operate as a Non-Bank
Financial Institution under the Financial Institution Act 1993. MIDAS FINANCING
LIMITED deal with the financial assets. Their vision is to provide value added financial
services to valued customers, strictly maintaining the ethical standard in financial operation.
Some of the products and services of MIDAS FINANCING LIMITED are:
Deposit Schemes
 Term Deposit Scheme
 Monthly Deposit Scheme
 Monthly/Quarterly Income Deposit
 Double Money Deposit Scheme
 Triple Money Deposit Scheme
 Millionaire Deposit Scheme

Loan & Others Schemes

 Housing Loan
 Auto Loan
 Call Money
 CCS Program
 Lease Financing
 MIDI Program
 SED Program
 LLS

BASIC BUSINESS ACTIVITIES:

MIDAS strongly believes that micro and small enterprises provide an excellent room for
creation of new employment opportunities and development of new base of entrepreneurship
in the country. Its enterprise development program aims at strengthening the strategic
position of micro and small enterprises between large scale , capital intensive and
sophisticated firms and very small scale, informal and less sophisticated enterprises.

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 Balance with Bangladesh Bank Growth
Rate
An Overview of a Non-Bank Financial Institution
80%
70%
60%
50%
40%
30%
20%
10%
0%
2012 2013 2014 2015 2016 2017 2018 2019

Balance with Bangladesh

Bank

Growth
Year Amount Rate
2013 68143486
2014 72783464 7%
2015 80447090 11%
2016 139568181 73%
2017 180837981 30%
2018 190896682 6%

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 Balance
Balance with
with other
Chart bank
Title and
Bangladesh financial
Bank Growth
institution
Rate
15%
200%
8%
60% Growth Rate
An Overview of a Non-Bank Financial Institution
100%
6%
40%
80%
150%
10%
80%
70%
4%
20%
100%
60%
60%
Balance
5%
2%
0%
40% with other bank and financial
50%
50% 2012 2013 2014 2015 2016 2017 2018 2019
institution
0%
-20%
20%
0%
40% ANALYSIS- GROWTH RATE
2012
0% 2013 2014 2015 2016 2017 2018 2019
0%2012 2013 2014 2015 2016 2017 2018 2019
-2%
-40%
30% 2012 2013
2012 2013 2014
2014 2015
2015 2016
2016 2017
2017 2018
2018 2019
2019 CALCULATION
-20%
-5%
-50% Growth
Balance
-4%
-60%
20% with Bangladesh
Year
-40% Amount Rate
Bank
10%
-6%
-100%
-80%
-10%
-60%
2013
0% 282634716 Interpretations: In the year of 2018 growth
2012 2013 2014 2015 2016 2017 2018 2019
2014 502029077 78% rate is minimum and in the year of 2016
2015 326621485 -35%Growth growth rate is maximum
Year
2016 Amount
474416305 45% Rate
2013
2017 68143486
314624699 -34% Borrowing from other Banks and
2014
2018 72783464
312716984 -1% 7% Financial Institutions
2015 80447090 11% Growth
2016 139568181 73% Year Amount Rate
2017 180837981 30% 2013 2155047143
2018 190896682 6% 2014 955712246 -56%
2015 1411028041 48%
Fixed Assets 2016 1336884759 -5%
Growth 2017 1394821193 4%
Year Amount Rate 2018 1471140743 5%
2013 511399916
Cash
2014 in Hand
545857955 7%
2015 525618594 Growth
-4%
year
2016 Amount
512586301 Rate
-2%
2013
2017 24894195
499654700 -3%
2014
2018 10095111
488748379 -59%
-2%
2015 4415936 -56%
2016 10881991 146% Interpretation: Here the minimum growth rate is in
2017 14749782 36% the year of 2014 and the maximum is in 2015.
2018 11714722 -21%

Interpretation: Growth rate is minimum in 2014 and maximum in 2016.

Interpretation: In the year of 2015 the Growth Rate is minimum and in the year of 2014 the
growth rate is maximum.

Interpretation: Here the minimum growth rate is in 2015 and maximum is in 2014.

Interest
Growth Interpretation: Here the minimum growth rate is
Year Amount Rate in the year of 2016, and maximum is in 2018.
2013 2156
2014 2230 3%
2015 2321 4%
2016 2167 -7%
2017 2093 -3% P a g e 10 |20
2018 2331 11%
 Other Assets
Chart
Chart
ChartGrowth
Title
Title
Title Rate
50%
80%
40%
50%
30%
An Overview of a Non-Bank Financial Institution
30%
60%
40%
60%
20%
40%
30%
0%
40%
10%
10%
Statutory
20%
20%
0% Reserve
20%
2012 2013 2014 2015 2016 2017 2018 2019
-10%
0%
10%
0%
2012 2013 2014 2015 2016 2017
0%
Growth
2018 2019
-20%
2012 2013 2014
2014 2015
2015 2016
2016 2017
2017 2018
2018 2019
2019
Year
-20%
2012 2013
0%
-30% Amount Rate
2012
-10%
-20% 2013 2014 2015 2016 2017 2018 2019
2013
-40%
-10%
-40% 118739104
Investment
-40%
2014-
-60%
-50%
-20% in securities
118739104 0%
2015
-60%
-30% 125242834 5%Growth Interpretation: Here the minimum growth
Year
2016 Amount
61072846 Rate
-51% rate is in the year 2014 and the maximum
2013
2017 355994073
80227958 31% growth rate is in the year 2017.
2014 206531495 -42%
2018
2015 80693788
262589134 1%27%
2016 266064975 1% Interpretations: the growth rate is minimum in
2017 346801198 30% the year of 2014 and maximum in 2016
2018 421576391 22%
Other Assets
Growth Interpretation: Here the minimum growth rate
Year Amount Rate is in the year of 2016, and maximum is in
2013 273744925 2017.
2014 190649677 -30%
Lease, Loans and Advances
2015 284214857 49%
Growth
2016 169146822 -40%
Year Amount Rate
2017 281069208 66%
2013 5080960525
2018 317468841 13%
2014 4552683867 -10%
2015 6030969351 32%
2016 8771092786 45% Interpretation: Here the minimum growth rate
2017 10099435603
Other Deposit 15% is in the year of 2016 and the maximum is in
2018 9872229012 -2% 2017.
Growth
Year Amount Rate
2013 23584968
Interpretation: Here the minimum growth rate is in
2014 24026318 2%
2016, and the maximum growth rate is in 2015.
2015 37639572 57%
2016 18827275
Other Liabilities -50%
2017 17447824 -7%
Growth
Year Amount Rate
2018 18282806 5%
2013 1316911072
2014 1615981623 23%
2015 1279204362 -21%
2016 1249316825 -2%
2017 1240111777 -1%

2018 1385169573 12%

Interpretation: Here the minimum growth rate is in the year of 2015 and the maximum is in
2014

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 Chart Title
80%
50%
70%
An60%
Overview of a Non-Bank Financial Institution
40%
50%
30%
40%
Total
30% Liabilities
20%
20%
10%
10% Growth
Year
0%
0% Amount rate
2012 2013
2012
-10% 2013 2014
2014 2015
2015 2016
2016 2017
2017 2018
2018 2019
2019
2013 6163111678
-10%
2014
-20% 5383129935 -13%
2015 6584699155 22%
2016 9242412458 40%
2017 10337418116 12%

2018 10223508972 -1%

Interpretation: Here the minimum growth rate is in the year of 2014, and the maximum
growth rate is in 2016.

Term Deposits
Growt
Year Amount h Rate
2013 2667568495
2014 2787409748 4%
2015 3856827180 38%
2016 6637383599 72%
2017 7725037322 16%
2018 7348915580 -5%

Interpretation: Here the minimum growth rate is in the year of 2018, and the maximum is in
2016.
Total Assets
Growth
Year Amount Rate Interpretation: Here the minimum growth rate is
in the year of 2014, and maximum is in 2016.
2013 6597771837
2014 6080630648 -8%
2015 7514876445 24%
2016 10396457360 38%
2017 11817938638 14%

2018 11696116478 -1%

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An Overview of a Non-Bank Financial Institution

FINDINGS:
Here, I have summarized the findings of this report in pointing out what can or has to be by
the MIDI program of MIDAS Financing Limited.

 MFL is a public limited company.

 MFL has a remarkable reputation in the market.

 MFL has a wide distribution channel all over the country.

 Environment is customer friendly.

 MFL does not go for aggressive in sales and marketing strategy.

 MFL do not have separate sales forces to approach the potential customers.

 MFL does not have a marketing plan in a broad aspect.

 Most of its customers are referred by the current customer.

 Brochure of MIDI program is out dated.

 MFL yet approach most of the corporate customer.

 Advertisement and media communication are hardly seen to communicate the offer of
MFL.
 There is no separate marketing department.

 Management is efficient, experienced and highly qualified.

 Business growth is high.

 Advertisement and media communication are hardly seen.

 Brand name of MIDAS provides some extra value to MFL.

 Cost of fund is high in NBFI in compare with bank.

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An Overview of a Non-Bank Financial Institution

RECOMMENDATIONS:
I would like to recommend the following points-
The program

 Cost & time can be saved through using advanced management information    
system.
 No necessity to go down with the minimum ceiling.
 Incentive system for Extension officers: providing bonuses for maintaining high
repayment rates and new client growth. Give loaners feeling that you care about him
personally, not only as client.
 Improve the selection process. This is the most essential point in having clients with
excellent repayment performance in the future.
 Expanding MIDI Program in other areas, the focus should be set to urban and sub-
urban areas (like Sylhet or Rajshahi). When MFL is located primarily in several big
and smaller cities, at the same time it also covers some of the rural areas. In near
future the rural will be more effective but it needs time to have those areas developed
gradually (mostly those entrepreneurs take micro-credit). But it is too risky to expand
rural areas at a time.
 Of course, the concentration should lie on the biggest growing areas and the potential
enterprise development. It should not be forgotten at which areas the competitors are
located.
 Attract the clients to make voluntary savings. That gives them the possibility to have
investment capital at the end of the repayment phase.
 Prepare a questionnaire for the loaners for beneficiaries to evaluate the whole MID1
loan process at the end of the repayment phase. Usable may be given which enables
MFL to understand easier the problems and obstacles for the entrepreneurs. Besides
during meetings with the clients also it can be talked about program related problems
or improvements. Extend the target group to other sectors; also new programs can be
initiated through which new target groups can be reached. The MIDI program can
also be divided into sub-programs.
 New programs can be started depending on the location.
 Diversification of the product should be a must as well as the expansion to other
places because as we have seen the micro-enterprise sector attracts more interest by
government, World Bank, foreign institutions, banks and NGOs, Commercial banks
have the advantage of a wide branch network and that the credit scheme is one of
many.
 More detailed analysis should be done by the MIS (Management Information System)
in order to study more detailed the developments, strengths and weaknesses of the
lending performance. For examples: percentage of borrowers concerned to the amount

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An Overview of a Non-Bank Financial Institution

of loan, percentage of the location of the borrower enterprises, percentage of the sick
projects or overdue products related to the loan range.
 Organize awareness through workshops
Promoting Organizing events:

 Organizing interesting or unusual activities— fairs, public information desk by big

public events.
 Intensify the promotion for women through women’s organizations (like WEA or
WEB)
 Intensify the cooperation with newspapers, radio, television, etc.
 Strong personal contact with the client and good experiences of the borrower with the
MIDI program will lead the clients to recommend the program.
When a client is a new borrower of MIDI then s/he should be asked how s/he got informed
about MFL. (Can I really broach the target group with my advertisements? Which promotion
techniques are more effective?).

CONCLUSION
In Bangladesh commercial Banks have spread their command in financial system, but we
have to recognize the fact that non-Bank Financial Institutions are also significant for smooth
economy. There are 34 non-financial institution Company like MIDAS is providing some
additional and dynamic financial services which helped them to become well known. In one
hand they are providing support for those financial sectors that was not served by commercial
bank. As an efficient company MIDAS helps in minimizing risk which in turn helps the
economy as a whole. As MIDAS becoming stronger and efficient day by day it can be hoped
that if they get necessary support from government it will be able to play a more historic role
in the economic development of Bangladesh.
I also find that Midas specialize in providing you with instant cash through the purchase of
accounts receivable or debts outstanding which is a financing technique known as Factoring.
Factoring moves your cash flow forward creating immediate cash to improve your financial
position and increase your purchasing power.
As the Non-banking financial institution it is searching for new area of business and collect
information about the potential sector as well as to prepare strategy for getting competitive
advantage.
Lastly, I can said that the Non-banking financial institution have huge opportunity to increase
business and profit in the Bangladeshi economic. Its plan should be innovative to do these
jobs.

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An Overview of a Non-Bank Financial Institution

BIBLIOGRAPHY
Anon., 2013-2018. Financial Statements, Dhaka, Bangladesh: MIDAS Financing Limited Bangladesh.

Anon., 2015-2016. Financial Performance, Dhaka, Bangladesh: MIDAS Financing Limited Bangladesh.

Anon., 2016-2018. Business Activities. [Online]

Available at: http://www.mfl.com.bd/index.php/home/gallery
[Accessed 2019].

Anon., 2016. Auto Loan. [Online]

Available at: http://www.mfl.com.bd/index.php/home/auto_loan
[Accessed 2019].

Anon., 2016. Home Page. [Online]

Available at: http://www.mfl.com.bd/index.php/home

Anon., 2016. Housing Loan. [Online]

Available at: http://www.mfl.com.bd/index.php/home/housing_loan
[Accessed 2019].

Anon., 2016. Monthly Deposit Scheme. [Online]

Available at: http://www.mfl.com.bd/index.php/home/monthly_deposit_scheme
[Accessed 2019].

Anon., 2016. Monthly/Quarterly Income Deposit Scheme. [Online]

Available at: http://www.mfl.com.bd/index.php/home/quarterly_income_deposit
[Accessed 2019].

Anon., 2016. Term Deposit Scheme. [Online]

Available at: http://www.mfl.com.bd/index.php/home/term_deposit_scheme
[Accessed 2019].

Anon., n.d. Call Money. [Online]

Available at: http://www.mfl.com.bd/index.php/home/call_money

Bangladesh, MIDAS Financing Limited, 2014-2015. Annual Report, Dhaka, Bangladesh: MIDAS
Financing Limited Bangladesh.

Limited, M. F., 2016. About MFL. [Online]

Available at: http://www.mfl.com.bd/index.php/home/about_mfl
[Accessed 2019].

MIDAS Financing Limited Bangladesh, 2014-2015. Annual Report, Dhaka, Bangladesh: MIDAS
Financing Limited Bangladesh.

MIDAS Financing Limited Bangladesh, 2014. Annual Report, Dhaka,Bangladesh: MIDAS Financing
Limited.

MIDAS Financing Limited Bangladesh, 2016. Annual Report, Dhaka, Bangladesh: MIDAS Financing
Limited Bangladesh.

MIDAS Financing Limited Bangladesh, 2017. Annual Report, Dhaka, Bangladesh: MIDAS Financing
Limited Bangladesh.

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An Overview of a Non-Bank Financial Institution

APPENDIX

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