Financial Performance Analysis of Bangladesh Venture Capital

This report will give us a clear idea about total activities and its financial performance of Bangladesh Venture Capital. Especially this report focuses what financial analysis is and how the liquidity and profitability analysis is used to evaluate the periodic financial success of a Bangladesh Venture Capital. This report will provide an evaluation and analysis of the profitability, liquidity, performance and financial position of the Bangladesh Venture Capital Ltd using figures from the financial statements for three years (2015-2018). In the analysis, financial ratios were used to gain a critical review of the specific areas of evaluation of the company’s performance. The ratios were able to provide a clear concept of the overall performance of the company.

From the ratios we can say that the company has not been profitable mainly because of high expenditures. It doesn’t display the ability of management to acquire deposits at a reasonable cost and invest them in profitable investments. The company has a healthy liquidity position which means that it can rely on its current assets to finance the current liabilities and does not have to commit to long term debts. Gross profit margin is very low That means the company did poor performance to managing its cost of sales. Given the nature of the business, it would have been interesting to evaluate the business by comparing with last year's results and also with the industry benchmark.

Introduction:

Bangladesh is the 8th largest populated country in the world with a large pull of minority population. If they are prepared with necessary skills, good health and effective choices, they present a huge opportunity to transform the future. Bangladesh is a land of an outgoing economy with huge entrepreneurial opportunities. Now, it has 180 million population which have 63% young generation. Each year, around 2 million young are adding to the workforce where only about one third of them are being employed and leaving two third unemployed. Without entrepreneurship development, it is really a big challenge to create new employment for us. It is good time to make this young generation visionary advance and involving them more in entrepreneurial activities and which will, in turn, create more jobs for the economy. The new entrepreneurs don’t have access to the friendly capital (from entrepreneur side) to actualize their ideas or to bring high growth prospects into their innovations especially at their early stages. An enough flow of risky capital (from investor side) in our economy could play a leveraging role to boost up entrepreneurial activities. Generally, the angel investors and venture capital firms construct this portion of risky capital for the new companies. In Bangladesh venture or angel investment culture is just at the developing stage.

Report on A study on start-up business & financial performance analysis concept implementation has been completed for the course requirements of BBA degree under Daffodil International University. I have completed my internship under Bangladesh Venture Capital Ltd and I analysis of BVCL financial portfolio. This report shows the financial performance analysis of Bangladesh Venture Capital for three years.

Origin of the Report:

In today’s world only, education does not make a student’s complete to become competitive with outstanding world. The internship program is an undivided part of the BBA program. Daffodil International University one of the most reputed private University of Bangladesh, has been designed the curriculum of the BBA course such a way that the international standard graduates will be provided. The students are sent to various organizations where they are attributed to one or more project. The internship program exercises a significant importance as it enables a student to be used to the business activities practically. The student gets the chance to work closely with the people the organizations and learn about the functions, responsibility and corporate culture of that organization. This program enables a student to development their intellectual and analytical skills and scholastic aptitudes and to have a real-life learning of the academic knowledge. At the end of the program, the internship is required to place the competence and findings of the project through the waiting of Internship report covering the relevant topics. During this program, supervisor guides each student.

This report is the result of a 90 days internship program in Bangladesh Venture Capital ltd (BVCL). And I analyze the financial portfolio of Bangladesh Venture Capital ltd (BVCL). Bangladesh Venture Capital is the place where I could learn about the business and financial analysis practice. As an intern student, I have got the opportunity to work with this organization for three months and acquire an idea about real business strategy, financial activities, business model and leadership role. When I work in Bangladesh Venture Capital ltd (BVCL), I learn how to plan business model, business strategy and How to invest in right places and What should be the leadership role.

Objectives of the Report:

The main objective of the study is to examine the Financial Performance of Bangladesh Venture Capital Ltd from the period of 2015 to 2018 and evaluates this performance. The other Objectives of this study are:

• To evaluate the financial position and performance of Bangladesh Venture Capital Limited from the period of 2015 to 2018
• To estimate the factors affecting performance of the Bangladesh Venture Capital.
• To calculate the financial ratios and identify the areas of concern.
• To understand the implications in analyzing and interpreting the financial ratios.
• To measure the managerial efficiency of the firm as well as earning capacity of BVCL in future period.
• To suggest better ways for enhancing the performance of the BVCL.

Scope of the Report:

The study gives a lot of knowledge about financial performances of Bangladesh Venture Capital ltd (BVCL). As I was working with the annual reports of Bangladesh Venture Capital ltd, I got the opportunity to learn different parts of financial statements. It consists of my observations and on the job experiences during the internship period. This report includes the financial status and different aspects of Ratio analysis of the company. The biggest scope in this report I am presenting the most recent information about Bangladesh Venture Capital ltd (BVCL).

Methodology of the Report:

This report is made based on my practical and theoretical knowledge and as a project report. This report has been prepared on the basis of experience gathering during on the period of internship. The report required a systemic procedure from the selection the topic. This report focuses on ratio analysis and to conduct, data sources are to be Identified and collected, there to be classified, analyzed, interpreted presented in a systemic manner and key points are to be formed out. In addition, everyday instruction with employees of the company has proved to be an extremely useful source and method for receiving information. Both primary and secondary data has been collected to complete the assign report.

Sources of Data:

All the relevant data concerning this report are collected from two sources,

• Primary Sources:
• Face-to-face conversation with respective officer of the BVCL
• Personal Observations
• Face-to-face conversation with clients
• Secondary Sources:
• Annual Report of the Bangladesh Venture Capital ltd
• Operation manual books
• Website of Bangladesh Venture Capital ltd

Limitation of the Report:

To make a report on various aspects and experiences are needed. But I have faced some barriers to making a complete and perfect report. These barriers or limitations, which hindered my work, are as follows:

• Lack of Sufficient Information
• Lack of experience to prepare such kind of Report
• The time is not adequate to do a complete research
• In some cases, actual data cannot be gathered for non-availability of sources

It is very difficult to collect all the actual information from selected company because of their organizational secrecy.

History of Bangladesh Venture Capital Ltd (BVCL)

Bangladesh is one of the most populated country in the world with a large number of young population. If they are prepared with necessary skills, good health and effective choices they present a plenty opportunity to transfer the future. One of the major problem in overpopulated country is unemployment. Every year almost 2 million graduates enters the job market but they hardly get jobs unfortunately rest of the stay unemployed. It is really a big obstacle for Bangladesh government to create new employments for them without entrepreneurship development.

New entrepreneurs in Bangladesh cannot easily access the market to prove their ideas and innovations. They are facing lots of obstacle especially at their beginning stages. Our economy could play a vital role to push up entrepreneur activities for ample flow of risky capital. Venture or Angel investment culture is just at primary stage in Bangladesh. Bangladesh Venture Capital LTD Company is founded in July, 2015. The company is basically service oriented. Bangladesh Venture Capital ltd (BVCL) is provide beginning stage funds for the new business. BVCL wants to make an investment eco-system for the start-up firms in Bangladesh. It also wants to create a healthy economic culture for all stakeholders. BVCL wants to inspire entrepreneurs to come up with innovation and creation so that they contribute to the national economy.