Comparison of financial performance analysis of Malek Spinning Mills Ltd and its subsidiaries

Abstract

This report "Financial Performance Analysis of Malek spinning Mills Ltd and its subsidiaries" is prepared to fulfill the partial requirement of the internship program of MBA, BRAC Business School, BRAC University. The topic of study was selected upon consultation with course Supervisor of respective department. In the organization part of this report a details description of Malek Spinning Mills Ltd. (MSML) and its subsidiaries in terms of their managerial operation, finance operation and production operation and so on. The textile industry plays a vital role in the socio-economic development of Bangladesh. This study is designed to review the financial performance of Malek Spinning Mills Ltd and its subsidiaries. In the second chapter, I have shown the information about the organization, their governance, ownership structure, vision mission, business process etc. these will provide a quick knowledge about the organization. The Financial Performance of this industry and its subsidiaries are measured in terms of Ratio (Liquidity, profitability, activity and solvency ratios and official records as well as primary data collected by interview. It was observed from the study of the financial statement of the textile industry. I also focused on trend analysis because I though it is important to analyze trends in ratios as well as their absolute levels. Trend analysis gives clues as whether a firm’s financial condition is likely to improve or to deteriorate. Comparisons are then made to the base year by expressing the other years’ amount as a percentage of the base years’ amounts. That the profit earning capacity, liquidity position, financial position and the performance of the most of the textiles are not in sound position. The reasons behind this position of the industry are inefficiency of financial management, absence of realistic goals, strict government regulation and increased cost of raw-materials, labor and overhead. The financial performance should be improved immediately. Therefore the appropriate authority should take measures for the removal of above problems. Malek Spinning Mills Ltd. is supposed to be Bangladesh's largest textile company. MSML it has targeted the industries the company needs most for progress and improved living standards. Is also focused on those industries, which make the most of Bangladesh's competitive advantages in the international market.