Internship Report on

Financial Performance Analysis of Asrotex Group

Prepared By:
ShamsunNaharSistia
ID # 163-11-5330, BBA (Finance)
Department of Business Administration
Faculty of Business & Entrepreneurship
 Internship Report on
Financial Performance Analysis of Asrotex Group

Submitted To:
Md. Kamruzzaman Didar
Assistant Professor
Department of Business Administration
Faculty of Business & Entrepreneurship

Prepared By:
ShamsunNaharSistia
ID # 163-11-5330, BBA (Finance)
Department of Business Administration
Faculty of Business & Entrepreneurship

Date of Submission: October 11, 2020

 Letter of Transmittal
October 11, 2020
Md. Kamruzzaman Didar
Assistant Professor,
Department of Business Administration
Faculty of Business & Entrepreneurship
Daffodil International University, Dhaka-1207

Subject: Submission of Internship Report

I take pleasure in submitting the report on “Asrotex Group.” as a requirement of the BBA
program of the Department Business Administration for your consideration. I have completed
the report in due time and met all the proposed objectives. Apart from the academic
knowledge gained, this internship program and preparation of report has given me the
opportunity to understand the topic related knowledge.

I have tried my best to make this report a comprehensive and informative one. I hope you will
appreciate myendeavor and find the report up to your expectation.
It has to be mentioned further that without your advice and cooperation it would not be
possible for me to complete this report. I shall be gratified to answer any sort of queries you
think necessary regarding this report.

Yours Sincerely,

ShamsunNaharSistia
ID # 163-11-5330, BBA (Finance)
Department of Business Administration
Faculty of Business & Entrepreneurship
 Approval Certificate
This is certify that ShamsunNaharSistia, ID # 163-11-5330, BBA (Finance), is a regular student of
Department of Business Administration, Faculty of Business and Entrepreneurship, Daffodil
International University. She has successfully completed her internship program at Asrotex
Group and has prepared this internship under my direct supervision. Her assigned internship
topic is “Financial Performance Analysis of Asrotex Group”. I think that the report is worthy of
fulfilling the partial requirements of BBA program. I have gone through the report and found it
a well written report. She has completed the report by herself.

I wish her every success in life.

Mr. Md. Kamruzzaman Didar

Assistant Professor
Department of Business Administration
Faculty of Business & Entrepreneurship
 Acknowledgment
In the name of Allah the beneficent the merciful. This paper would not have been possible
without the guidance and the help of several individuals who in one way or another contributed
and extended their valuable assistance in the preparation and completion of this study.

I started this internship report and finally it has been completed. However, the special thanks
goes to my helpful supervisor, Md. Kamruzzaman Didar, Assistant Professor, Department of
Business Administration. The supervision and support that he gave truly help the progression
and smoothness of the internship program. The co-operation is much indeed appreciated.

I’m grateful to all the senior officials of who had created the opportunity to get the practical
knowledge. Besides, this internship program makes me realized the value of working together
as a team and as a new experience in working environment, which challenges us every minute.
Last but not least I am also owed to each person who concerned inside and outside of Asrotex
group in carrying out this report.
 Executive Summary

The study was carried out focusing on the title "Analysis of the financial performance of the
Asrotex Group". The objectives of the study were to analyze the profitability, liquidity and
financial solvency of the Asrotex Group using ratio analysis tools. In addition, the firm intended
to carry out the analysis of the financial relationship and carry out vertical and horizontal
activities of the Asrotex Group. Finally, the study included investigating the problem and
recommending some measures to improve the financial performance of the Asrotex Group. The
study is exploratory in nature. This report is based on theoretical and pragmatic knowledge. This
arrangement is reasonable, which facilitates the application of logical tools. All data was
obtained from the financial statements and operating manuals of the company.
In my report I tried to cover a brief profile of Asrotex Group and the main clients of Asrotex
Group. It also includes the responsibilities of a trader, my activity and the problems I faced and
any recommendations.
Table of Content
 CHAPTER: 01
INTRODUCTION

1.1 Introduction:
Readymade Garments Industry is the leading earning sectors of Bangladesh. Now-a-days
Bangladesh financial sector is very much dependent upon Garments sector. The annual export
income of garments sector is driven from two origin one is woven garments and others is knit
wear. Redimet garments are a 100% export oriented garments. Readymade garments exports
various product in foreign market. The garments sector makes shirts, ladies dress, shorts,
trousers, and others for U.S.A, U.K, European countries.They use high tech machineries to
produce a good quality product. They also attach latest machineries to increase their production
line. Their mission and vision is to profit maximization. The merchandising beliefs of readymade
garments is to keep good relation with their buyers.

The story of the remarkable success of RMG industry was not always smooth and parallel. It has
faced many daunting challenges including shortage of power supply, lack of modern
infrastructure, lack of proper compliance, low skilled workers, environmental challenges, stiff
competition from other counterparts, and many more agonizing tragedies. One of the tragedies
was the deadliest Rana Plaza building collapse in 2013 which killed 1134 workers and fatally
injured 2500 workers. The aftermath of the incidence was devastating for Bangladesh as
Bangladesh was denied GSP facility to U.S.A, the single biggest importer of Bangladesh’s
apparel. Still now Bangladesh has not been offered back GSP facility, although workplace safety
in Bangladesh has been improved after the inspection of and remediation of garment factories by
the accord and alliance through connect the loopholes in structural, fire and electrical aspects.
Although Bangladesh is still getting GSP facility in European Market at much lower rate,
Bangladesh was hardly hit by the suspension of GSP facility to the Us Market. EU is the second
biggest export destination for Bangladesh, accounting 55% of the total RMG export to the world
in 2016-2017 fiscal years.
According to a 2011 report by international consulting firm McKinney& Company, 80% of
America and European clothing companies planned to move their outsourcing from China and
were considering Bangladesh as the “Next Hot Spot” making it the “Next China”. When
McKinney& Company made the report, export earnings from the RMG industry was
approximately 10 billion USD and now export earnings from RMG sector stands at whopping
28.14 billion US Dollars. (Source: BGMEA) Bangladesh is poised to achieve the target of USD
50 billion by 2021. Goldman Sachs perceives Bangladesh in the “Next 11” emerging countries to
watch for along with the BRICS (Brazil, Russia, India, China, and South-Africa). JP Morgan
includes Bangladesh among its “Frontier Five” emerging economies worth investing in.

With the encouraging indications from the world leading investment and consultancy firms and
the continuing investment, Bangladesh is determined to take the quantum leap for USD 100
billion in next 20 years. Despite many drawbacks, Bangladesh has huge opportunities to become
a global leader in the export of readymade garments and fast fashion apparel.

1.2 Origin of the report:

This report has been prepared and submitted to the Department of Business Administration of
Daffodil International University in partial fulfillment of the requirements for the award of BBA
(Bachelor of business Administration) in Finance.The purpose of the internship program is to
provide a real opportunity to a student to get the exposure of the corporate world. The practicum
program is an integral component of the BBA program, and is equivalent to 3 credit hours. The
duration of the program is 3 months and it requires a student join a suitable company as an intern
for 3 months to perform practical work and submit a practicum report consists of different parts
such as analysis of the company, analysis of the topic part, description of actual task part, and a
research project.

I embarked on the internship program at Asrotex Group at its corporate head office in Banani
Dhaka, Bangladesh on 15th February, 2020. Asrotex Group is one of the leading knitted
garments exporters from Bangladesh, exporting high quality knitted garments to the top retailers
of the world including H & M, Zara, Matalan, Next, Springfield, NKD, Cotton on, Simple,
Samar, Primark, Carrefour, and many more. Its total annual sales revenue is more than 150
million USD.
My internship line attachment was in Finance and Commercial Department (Banking, Supply
chain, and export, custom, bond and audit sections) in close liaison with merchandising
Department.

1.3 Objectives of the report

 Broad Objective:
The most significant objective of the report is to get familiar with the activities of Apparel
industry and analyze the financial performance of Asotex Group.

 Specific Objectives of the Report:

 To find out functional activities of Asrotex Group
 To analyze the financial performance of Asotex Group
 To find out the operational and financial performance of the Asotex Group
 To make some recommendations to improve the situation of the company.

1.4 Methodology:
In making the report, sources were explored for raw data and information. But hardly any
updated data could be found. In the absence of up-to-date information or data, dependence on
secondary data has been inevitable. However, provided that possibly primary data was used. The
data was also collected by interviewing the responsible officials and from some documents and
statements printed by the Asrotex Group and the website. Some statistical and graphical
representations have also been used to know different types of analytical results and
interpretations.
1.5 Limitations of the Study:
As I did my internship program at Asotex Group and worked in the Accounting Department, my
report is based entirely on the analysis of the financial performance of the company. But in
preparing this report I faced little difficulties because, I also have some limitation which are:
 The first limitation is that I was unable to sketch the complete picture of the Asotex
Group's activities in the period of my scheduled internship. So I did my best to focus on
what I had done and also tried to make it consistent with the other part of the report
(because as a new company).
 The second limitation is the lack of intellectual thinking and analytical ability to make
one perfect. I have to make up for quality due to lack of time, which apparently seems to
be the most severe limitation.
 There are not enough records and publications, as well as updated information.
 Another limitation of this report is the company's policy not to disclose some data and
information for obvious reasons, which could be much more helpful.
 Chapter-02
Overview of Asrotex Group

2.1 Background of the Company

With the opening up of the economy of Bangladesh, a substantial change has been observed both
in manufacturing and in service sectors. This has brought sky scrapping employment
opportunities, increases in income level, and changes in consumption pattern and consequently
there emerges a competitive environment in the country. Specifically, the expansion of garments
business, along with customized services, has created a severe implied competition in this sector.
This competition has made the service gap wider as company’s offer better services to their
internal and external customers. The scenario has created an urge to the policy makers to identify
the reasons and brought them into consideration the job satisfaction issue. It will investigate that
officer of Asrotex Group.

Asrotex Group is making mark at home and abroad. The group has been uplifting socioeconomic
conditions of many deprived and destitute people, by providing employment to them.  The group
has been awarded the prestigious national Export Trophy award in the year of 2011, 2012, 2013,
2014, 2015 & 2016 for its outstanding contribution to national GDP by the People's Republic of
Bangladesh and it is one of the prime remittance earners in RMG sector. Asrotex Group is
opening up its horizons across the world with global investment in United States, Mexico,
Germany, Italy, Japan, China, Vietnam, Myanmar, Sri Lanka, Central America and South
America to become a truly multinational company.
3.1 Historical Background of the Company
ASROTEX group established its journey in 1995 as a small manufacture of ready-made knitted
garments and accessories. Over the years, it emerged as one of the leading conglomerates of the
country with substantial establishments along with business diversification into other industries,
such as, IT and Real Estate. The group also operates two independent buying offices. Today the
group is one of the major exporters of RMG to different destination across the globe, particularly
the EU, North America, USA and East Asia. The group has been continued its status as one of the
largest sources of foreign exchange in the RMG sector and a proud recipient of the national Export
Trophy in the year of 2011, 2012, 2013, 2014, 2015 & 2016.
Asrotex Group has 15 sisters concern:
Serial No. Course Name
1. Asrotex
2. RimshadTex Ltd.
3. Fariha Knit Tex Ltd.
4. Ruma Industries Ltd.
5. FarihaDyenchem Ltd.
6. Fariha Trims &Asccessories Ltd.
7. Asrotex Ltd.
8. AsroFashon Ltd.
9. Rich Apparels Ltd.
10. Logic Software Ltd.
11. Standard Holdings Ltd.
12. Fibre 2 Fashion (BD) Ltd.
13. Sensible Fashion Ltd.
14. Platinum Fashion Ltd.
15. Asmoor Digital Shopping.

Table: 3.1sister concern of Asrotex Group

3.2 About the Company

Their goal is one which demands the strongest foundation in the basic elements for success. To
grow to the heights of perfection thru winning the hearts and minds of their clients in total
dedication to quality and commitment to the achievement of total customer satisfaction. Their
goal is Capacity fill up with Profitability and on time delivery. It is very big organization. Now
they are doing business with $150 M. And their target is earn $ 500M by 2021.

3.3 Goal for HR, Admin and Compliance:

To set up a modern administrative structure through ensuring the overall security measures,
accommodation facilities basing on security, applying appropriate technical for retaining the
employees and control irrelevant cost.

3.4 Goal for Customer Focus:

No complaint and no stop order from customers.

3.5 Goal for Security Section:

Ensuring the service and security to the Organization, buyer and Employees.

3.6 Shared Commitment to Perfection:

Expertise in meeting the standards that their customers require is executed by a pro-active staff
and a labor force of trained personnel, from which they draw their strength and tailor production
to their client’s absolute satisfaction.Only materials of the highest quality are selected for use on
their products, from suppliers of good reputation worldwide.

Their quality control begins with the choice of material and continues through all stages of
production till the end product. An in-house washing unit is an added advantage to meet the
present trend in the jeans washing fashion. Their washing unit is capable to handle all kinds of
enzyme washing, tinting, dyeing, as well as dry processes like hand brushing and other all kind
of dry process including chemical sprayings.The effluent treatment plant which is built for
purifying waste water to help maintaining healthy environment.
To ensure that production schedules are adhered to, they have installed their own power supply a
4 MW generator that totally runs the production lines, that guarantees an un-interrupted
productivity.

3.7 Compliance:

They have certifications & audit of-

WRAP CIT UKAS OCS

BSCI OE AZA ISO 9001

GOTS ACCORD SEDEX USC&BP

 3.8 Company Overview
Subject Explanation

Company Name Asrotex Group

Type of Enterprise 100% Export Oriented Garments Manufacturer

Full Name Md. Asadul Islam

Titles Owner

Position Managing Director

Address Corporate Office: House#85, Road # 4, Block# B,

Banani Dhaka–1213, Bangladesh
Tel 88 0255034403, 55o33575

Fax 88-02-9891521

Email [email protected]

Website www.asrotexgroup.com

Logo

Table: 3.2 Company Overview

3.9 Factory Profile

1. FarihaKnit TexLimited
Year of Establishment: 1997
Company Location: Baroybogh, Enayetnagar, Fatullah, Narayangonj.
Capacity:2, 88,000 SAH (monthly).2.16 Million Pieces/month.
Numberof Line:60
NumberofMachine: 1200
Major Buyers: NEXT, H&M, NKD, KMART (Aus), ALDI,
LIDL, E.LECLERC, WALMART, SPRINGFIELD, TAKKO, MANGO,
SFERA, LEFTIES, BHS, SIPLEC, AEROPOSTALE, SPORTS, DIRECT,
COTTONON (Aus), CARREFOUR, MATALAN, PEACOCK etc

Production Area: 5, 00,000 sq. ft

Specialization: 100%vertical setup

2. Asrotex
Year of Establishment: 1995
Company Location: Dharmagonj, Enayetnagar, Fatullah, Narayangonj-1420
Capacity: 124800SAH (monthly), 0.936 Million Pieces/month
Number of line: 26
Number ofMachine:520
Major Buyers: BRICE, E.LECLERC, ALDI, LIDL, ZARA, BIEDRONKA, LAGER 157,
NORMA.
Production area: 1, 20,000 sq. ft

3. Asrotex Limited
Year of Establishment: 2005
Company Location: NotunBazar, Bathjury, Sreepur, Gazipur.
Capacity: 1, 34,400 SAH, 1.008 Million Pieces/month
Number of Line: 28
Number of Machine: 660
Major Buyers:OVS, NEXT,CONBIPEL,CACHE, CACHE,SPORTS, DIRECT,COTTONON, CAR
HARTT, MATALAN,FOREVER 21, RIVER ISLAND etc
Production Area: 1, 00,000sq.ft.

4. RichApparelsLtd
Year of Establishment: 2013
Company Location: B-111, BSCICI/A, Fatullah, Narayanganj-1400
Production Floor: 70,000sft
Production Capacity: 76,800 SAH, 0.576 Million Pieces/month
Number of Line: 16
Number of Machine: 320
Major Buyers: INDIGO, TAKKO.

3.10 Organogram of Asrotex Group

Figure: 3.1 Groups HR
Figure: 3.2 Group M&M
3.11 Corporate Governance:
Corporate governance is the set of procedures, customs, policies, laws, and institutions affecting
the way a corporation (or company) is directed, administered or controlled. Corporate
governance also encompass the relationships among the many stakeholders involved and the
goals for which the corporation is governed. The principal stakeholders are the shareholders, the
board of directors, employees, customers, creditors, suppliers, and the community at large. Good
corporate governance is the key to the integrity of corporations, financial institutions and
markets, and central to the health of our economies and the stability.

S.L. Name Designation

1 Mr. Md. Asadul Islam Managing Director
2 Mr. Md. Mamun Bhuiyan Chairman, FKTL
3 Mr. Sharif Hossain Bhuiyan Chairman, Asrotex Ltd.
4 Mr. PromodhNirodadarshiAbeykoone COO, FKTL
5 Mr. Hasan Murad Director, Asrotex
6 Mr. Rupak Chakraborty Director, M&M
7 Mr. Iqbal Hossain Bhuiyan Director, FKTL
8 Mr. Mostak Ahmed Director, FKTL
9 Mr. Md. Abdur Rahim AGM, HR & Admin
10 Dr. Mohammed Golam Rabbani Finance Adviser
11 Mr. Md. Shakhawat Hossain Bhuyain Director, Asrotex Ltd.
12 Mr. M.K. NalinSurangaWijedasa CFO
Table: 3.3Corporate Governance
3.12 Mission
Asrotex group empowered people work as a team for sustainable businesses relying upon long-
term partnership with customers, quality of products and services, integrity and ethical business
practices, and high standards of workmanship.
3.13 Vision
Our vision is to emerge as the first choice of our stakeholders based on quality of our employees
and the products/services we offer.

3.14 Strategies
The strategies of Asrotex Group include:
To seek for customers best satisfaction & earn their confidence.
To manage & operate the company in the most effective manner.
To recognize customers needs & monitor their perception towards meeting those
requirements.
To analysis& updates policies, procedures & practices to enhance the ability to extend
better services to the customers.
To instruct& develop all employees & provide them adequate resources so that the
customer’s needs are reasonably addressed.
To boost organizational efficiency by communicating company plans, polices &
procedures openly to the employees in a timely fashion.
To cultivate a congenial working environment.

3.15 Customers
The customers of Asrotex Group are particularly the EU, North America, USA and East Asia.
SL No. Buyer Name Logo
01. H&M

02. LIDL

03. KIABI

04. Primark
05. TAKKO

06. Carrefour

07. AERO

08. ALDI

O9. BRICE

10. Disnep

11. Etam

ccccc JayJays

13. INDITEX

14. JOCKEY

15. Kmart

16. E-LECLERC

17. MANGO

18. Next

19. OVA
 20. PRIMARK

21. SANMAR

22. Siplec

23 SPRINGFIELD

24 TARGET

25 Wal-Mart

26 ZARA

Table: 3.4 Customers

3.16 Bankers
EXIM Bank, Standard Chartered Bank, BRAC Bank, HSBC Bank.

3.17 Products of Asrotex Group

Readymade garment products are the chief export items of Bangladesh to support the country.
In its prime venture and to take the opportunity of an already established products market
Asrotex has focused on the readymade apparel sector. Asrotex Group’s product line includes:

1. T-shirt ( Girls& Gents)

2. Trouser
 3. Polo Shirt
4. Tank-top
And the Raw Materials that they use are:
1. Fabrics
2. Color
3. Cloths

The local market of Bangladesh is the source of the raw materials but the machines that are used
to manufacture the products are mostly from Japan, German, Malaysia, India, and Switzerland.
As Asrotex Group is a composite garment, it will always give continuous effort to ensure the
different types of quality product within desirable time through specialized procedures and good
management workforce.

3.18 Quality Assurance:

Focus is on quality rather than quantity. They are committed to produce at the highest level &
never comprise quality with quantity. They have earned a reputation for being a marker of
quality garments in our never ending quest for quality; Asrotex Group ensures strict quality
control measures where each product has to go through a series of thorough scrutiny.

3.23 Production
Men’s: 30%
Ladies: 40%
Children/Kids: 30%

3.24Turnover
Existing turnover USD 150 million, by the year 2017-2018 turnover USD 200 million

3.27 Internal Environment of Asrotex Group:

3.27 .1 Marketing:
Asrotex Groups most of the customer are from Europe, Asia, Germany, USA, UK, & Franch.
Asrotex Group has their specific buyer that’s why they don’t need to follow any kind of
marketing strategy. They have some of merchandisers and they motivate their buyer to buy their
product.
3.27 . 2Finance:
Because of privacy I can’t collect their financial statement. And also in their web site they don’t
share their any kind of financial information.
3.27.3 Human Resource Management:
Asrotex Group has good Hr Practice. They follow a systematic recruitment & selection, training,
compensation & benefits, performance appraisal process and they have worker participation
committee for negotiation (worker and employer).
3.28 External Environment of Asrotex Group
3.28.1 General Environment
By undergoing general environment factor analysis of PEST Asrotex Group can handle many
assumptions and also can adapt quickly and effectively to the change of external conditions.
3.28 .2 Political:
In our country, political situation is not so good. Since 2012 to till now they face political
problem many times. Strike is one of the common political problems.
3.28.3 Economical:
Economic condition is also become one of the factors that influence Asrotex Group, business
process as this company is recognized outside the country. Their economical condition is so
good that they can establish more garments industry.
3.28.4 Social:
Globalization, lifestyle, culture etc are a social factor that gives a huge impact to Asrotex Group
business development. The reputation of Asrotex Group also goes up and many of the foreign
buyers are interested to buy their product. Social factor have positive effect on Asrotex Gropup.

3.28 .5 Technological:
Asrotex Group produces their product using latest technology. The machines that are used to
manufacture the products are mostly from Japan, China, German, Malaysia, India, and
Switzerland. So, we can say that, there technological factor are strong.
Chapter 03
Industry Analysis

3.29 Industrial Environment:

3.29 .1 Porter’s 5 Force On Asrotex Group
Porter 5Force’s is a framework for industry analysis and business strategy development relative
to the competitors of the firm.

Threat of New
entrance

Bargaining power Competitive Bargaining power of

of supplier rivalry buyers
 Threat of substitute

Porter’s 5 Forces

3.29 .2 Threat of substitute (low):

Asrotex Group has itself positioned for long term success on the RMG sector. Threat of
substitute is low.
3.29. 3 Bargaining power of buyers (Moderate):
Asrotex Group’s bargaining power of buyer is strong. Most of their customers are foreigner.
They receive order from Europe, USA, Asia, Germany, and UK.
3.29 .4 Bargaining power of supplier (Low):
Asrotex Group has 17 business organization and most of them are garments industry. They
have their own supplier. They can get their material from their own garments industry.
3.29 .5 Threat of New entrance (Low):
Asrotex Group has low risk of new entry threats because of their strong brand name and good
financial condition.
3.29 .6 Competitive rivalries (High):
In competitive RMG sector Asrotex Group has already strong brand name. Others garment
company as like Hamim Group, Square Tex Ltd. Vidalia Texetc are their surrounding competitors.
Also they have others RMG competitors.

3.30 Strategic Factor analysis:

Asrotex Group’s SWOT analysis is given bellow:

3.30 .1 Strengths:
 Availability of law cost and skilled manpower
  Market reputation or strong brand image
 They have their own supplier.
 No bank liabilities
 On time delivery
 Single point control in management operation.

3.30 .2 Weaknesses:
 Depending on Europe market
 Lack of knowledge of the workers
 Limitations for some modern machinery in some specific sector
 Only specialization on knit manufacturing
 Lack of high skilled labor
 Political unrest situation, which making buyers step back in some cases

3.30 .3 Opportunities:
 Attracting new buyers by establishing new buying house
 Establish showroom
 More options of new employment
 Expand the merchandising area
 Expand international business all over the country.
 Scope of building a green factory at Gazipur.
 Extreme potentially for woven manufacturing.
 Chance of a massive business growth which is $ 500M ( current business is $ 150M ) in
2021 which means more job for the people
3.30 .4 Threats:
 Wage hike of the worker
 Rise of competitiveness in export market
 Rise of price of raw materials
  Political unrest situation of the country
 Global recession
 Knit wear price down fall
 Less demand, more supply of good.
 Geographical and environmental change.

IFAS (Internal factor Analysis)

Internal Strategic Factors Weight Rating Weighted Comments
score

Strengths:

01. Availability of law cost and skilled 25 5 125 Competitive

manpower advantage
02. Strong brand image 15 4 60

03. They have their own supplier 10 3 30

Weakness:

01. Lack of knowledge of the workers 25 5 125 Low

performance
02. Limitations for some modern 15 4 60
machinery

03. Depending on Europe market 10 3 30

Total score 100

 Table: 3.5 Internal Factor Analysis summary

EFAS (External Factor Analysis)

External Strategic Factors Weight Rating Weighte Comments
d
Score
Opportunity

1. Attracting new buyers by establishing 25 5 125 Reputation

new buying house.
2. More options of new employment 15 3 45

3. Expand the merchandising area 10 4 40

Threats:

1. Rise of competitiveness in export 25 4 100 Loss position

market.
2. Rise of price of raw materials 10 3 30

3. Political unrest situation of the country 15 5 75

Total score 100

 Table:3.6 External Factor Analysis summary
SFAS (Strategic Factor Analysis)
Strategic Factors Weig Rating Weigh Short Interm long Comments
ht ted ediary
Score
S1.Availability of law cost 25 5 125 x Competitive

and skilled manpower advantage

W1.Lack of knowledge of 25 5 125 x Low

the workers performance

O1.Attracting new buyers 25 5 125 x Reputation

by establishing new buying

house.
T1.Rise of competitiveness 25 4 100 X Loss position

in export market.

Table:3.7 Strategic Factor Analysis summary

TOWS Matrix
Internal factor Strength Weakness

S1.Availability of law cost W1.Lack of knowledge of the

and skilled manpower employees.
S2. Strong brand image W2.Limitations for some
modern machinery

External Factor
Opportunity SO WO
O1.Attracting new buyers Using strong brand image & If they increase employment,

by establishing new buying establishing new buying they can minimize their

house. house Asrotex Group can weakness and then they don’t

O2.More options of new attract new buyer. need modern machinery.

employment
Threats ST WT

T1. Rise of competitiveness Available of law cost and Knowledgeable employees can

in export market. skilled employee can produce cope up unrest political

T2. Political unrest situation more products and export situation. And if they bring

of the country the products that’s reason some modern machinery they
they can minimize their can overcome weakness and
threat minimize the threat
Chapter 04
Theatrical Analysis
4.1
Chapter 05
Financial Analysis of Asrotex Group
5.1
Ratio analysis of Asrotex Group:

 Net Profit Margin:

Net profit margin (also known as "profit margin" or "net profit margin ratio") is a
financial ratio used to calculate the percentage of profit a company makes from its total
revenue. It measures the amount of net profit a company makes per dollar of revenue
earned. Net profit margin equals net profit (also known as net income) divided by total
revenue, expressed as a percentage.

Net Profit Margin= (Net Profit / Net Interest Income) x 100

Year 2017 2018 2019
Net Profit Margin 2.46% 3.24% 3.50%

Net Profit Margin

3.24 3.5
2.46

2017
2018
2019
Interpretation: The proportion reveals the overall benefit of the concern, which is why it is
extremely beneficial for owners and future financial specialists. We see that the net revenue is
positive every year. The ratio 2.46% in 2017, 3.24% in 2018, 3.5% in 2019.Thats means it make
rising profit every years.

 Return on Equity Ratio(ROE):

Profit for equity is a percentage that estimates a firm's productivity by discovering the
benefit an organization creates with the money that investors have contributed. The
ROE is reported as a rate. In general, the higher this arrival, the happier the owners are.
Increasing ROE advises an organization to expand its ability to create benefits without
requiring as much capital. It likewise shows how well an organization's administration is
sending investor capital. Declining ROE is typically a problem.

ROE=Net Income / Total Equity

Year 2017 2018 2019
ROE 7.12% 9.5% 10.12%

Return on Equity Ratio(ROE)

9.5 10.12
7.12

2017 2018 2019

Interpretation:From the graph we can see that the ROE ratio of the company was7.12%, 9.5%,
10.12% respectively during the year 2017 to 2019.From this ratio it is noticed that there was
net income is good for every each year. For this reason it shows the positive return on equity of
the company.

 Return on Assets(ROA):
The return on assets ratio, often called the return on total assets, is a profitability ratio
that measures the net income produced by total assets over a period of time, by
comparing the average total of assets with total assets over a period of time . In other
words, measuring the ratio of assets to RO is how an organization can efficiently manage
its assets to generate profits over a given period of time.

Since the sole purpose of a company's operations is to generate income and make a
profit, this report helps both management and investors see how well a company can
convert its investments into profit. Since capital goods are often the largest investment
of most companies, you can consider ROA companies as a return on investment. In this
case, the company invests money in capital goods and the profit is measured in terms of
criteria.

ROE=Net income / Total Asset

Year 2017 2018 2019
ROA 4.41% 6.1% 5.56%
 Return on Assets(ROA)

0
2017 2018 2019

Interpretation:This proportion is determined to quantify the after-cost benefit versus the sum
of the resources invested in the cumulative benefits to determine whether the resources are
being used appropriately or not.The return on equity of Asrotex Group was negative. This is an
unacceptable position. In 2018, it was only 6.1%, which was higher in 3 years, but especially
below the norm.

 Debt-Equity Ratio:
Debt-to-equity ratio (also called "debt-to-equity ratio", "risk comparison"), is a
comparison that calculates the weight of total liabilities and liability against all owners
of costs. Unlike sample expense which uses all assets as a whole, the D / E ratio uses all
equivalents. These graphs show a company's capital structure on a regular basis for
expenses or investments.
 Debt to Equity Ratio=Total Liabilities/Total Equity
Year 2017 2018 2019
Result 0.56% 0.61% 0.59%

Debt to Equity Ratio

0.62

0.61 0.61

0.6

0.59 0.59

0.58

0.57

0.56 0.56

0.55

0.54

0.53
2017 2018 2019

Interpretation:The debt-to-equity ratio presents the company's debt versus the company's
equity. Debt helps reduce non-operating costs of businesses. A certain level of debt is useful for
the business, but when it exceeds the norm, it is a cause for concern. Asrotex Group equity
ratio is below the standard, so it should be increased.
Chapter-06
Findings, Recommendations& Conclusion
6.1 Findings of the study:
 Asrotex Group is a Group of company, there business are- Asrotex Group Dyeing
Division Our goal is to improve textile quality and reduce costs, while keeping our
production in line with the latest fashion trends. Our textile manufacturers ensure that
we use the latest technology while ensuring cost savings and high quality fabrics in our
dyeing plants.
 Color correction system in the coloring process
 Low mechanical friction fabrics
 Pure white bleached fabrics
 The Most Advanced Washing Techniques
 Rain Wash
 Ultra-Soft Wash
 Silicon Washes

 The ASROTEX Group clothing division offers an exciting range of men's, women's and
children's clothing, created using our highest quality fabrics. We produce T-shirts,
sweatshirts, polo shirts, fast fashion clothing, sportswear and sleepwear. We are
developing more and more fabrics for regions of the world. We work with all major
retailers and importers on all continents. Our quality clothing has earned worldwide
recognition and praise.

 The net profit margin in 2017 was (2.46%), in 2018 it was (3.24%), and in 2019 it was
(3.5%). In addition, the net profit margin in 2018 was higher than in 2017 and 2019. Also
the company's net profit margin was comparatively good in 2018. At the same time, the
operating profit ratio in 2017 was (2.46%), in 2018 it was (3.24%), and in 2019 it was
(3.5%). In addition, the operating profit ratio was the highest in 2018 and the lowest in
2017. The organization had a good position in 2018 and a very poor one in 2017. Thus, it
is clear that the company's operating profit situation was good in 2018, but in 2017 it
was bad.
 The return on equity ratio in 2017 was (7.12%), in 2018 it was (9.5%), and in 2019 it was
(10.12%). Moreover, the return on equity ratio in 2016 was higher than in other years.
In addition, the return on assets indicates a negative performance for the company. At
the same time, the return on assets ratio in 2017 was (7.12%), in 2018 it was (9.5%), and
in 2019 it was (10.12%). However, the return on assets ratio in 2018 was higher than in
2017, and in 2019 it was.

 The graph show of the company’s Return on Asset Ratio in 2017 was (4.41%), in 2018
was (6.1%), in 2019 was (5.56%). But the company return on asset better than
2017,2029 to 2018.

 The debt ratio in 2017 was (0.56%), in 2018 - (0.61%), in 2019 - (0.59%). Obviously, the
debt ratio in 2017 was lower than in 2018 and 2019. In 2017, the company had a small
amount of debt, because it was in the midst of a monetary crisis, it borrowed funds from
various sources.
6.2 Recommendations
 Asrotex Group understands that relationships of all those around us are critical to the
success and growth of our company.
 In addition to further strengthening our experience and competencies in the RMG
sector, ASROTEX Group plans to diversify into various industries where human well-
being will be at the center of attention. The vision of our leadership has brought us here
today and we are not going too far, we have just arrived.
 From the very beginning to the end of all processes in our production, we care about the
environment and our responsibility to protect the land on which we live. Social
responsibility is paramount in everything we do
 Asrotex Group owns and operates production and accessories facilities globally
 The Asrotex Group offers many opportunities for the enterprising people. If you have a
desire to succeed and grow in the exciting apparel industry, please contact us as we are
always looking for new talent.
 We warmly welcome companies from all over the world as our development partners in
the fields of agribusiness, automotive, ceramics, distribution, electronics, food,
healthcare, leather and leather goods, lighting, medical equipment, pharmaceuticals,
plastics, electricity, professional development, real estate. Renewable energies,
shipbuilding, telecommunications, tourism, transportation or any other promising
industry that will meet the needs of a huge population of more than 160 million people.
6.3 Conclusion
References