Internship Report

On

Financial Performance Analysis of

PRAN-RFL Group
 Internship Report
On Financial Performance Analysis of
PRAN-RFL GROUP

Prepared for
Safina Haque
Senior Lecturer, BBA Department
UODA

Prepared by
Md. Shahriar Islam
ID: 021181055
Batch: 58th
Department: Finance
UODA
Submission Date:
 1.0 Executive Summery
Internship program is a scope for acquiring practical knowledge after successful completion of
academic curriculum. Theoretical knowledge gets a complete shape only when it is applied in a
practical field. I have accomplished my internship program at PRAN-RFL Group
Bangladesh. During 3 month of my career in the Finance Department, I tried my best to get
knowledge about their overall Financial performance.
This report is based on “Financial Performance Analysis of PRAN-RFL Group” This report
takes a look at the overall production and the view that how PRAN-RFL maintains the
production procedure and the factors that affecting the production as well. This report is to find
out what is the most important factor behind increasing level of their Assets , the problem areas
for
lower production so that PRAN-RFL can improve the current situation of low productivity hence
lower sales and to measure the success or failure of the project on the basis of improvements in
the overall performance of the modules and increased production due to this project. Secondly to
find out the possible solutions that can be taken into account to rectify the issues.
 Table of Contents
Chapter -1
1.0 Executive Summary…………………………………………... 1
1.1 Introduction…………………………………………………… 2
1.2 Objective of the study…………………………………………. 3
1.3 Limitation of the study………………………………………... 4
1.4 Methodology of the study…………………………………….. 5
Chapter – 2
1.5 Literature review………………………………………………. 6
Chapter – 3
1.6 Company Profile……………………………………………….. 7
Chapter – 4
1.7 Topic Analysis…………………………………………………. 8
Chapter – 5
1.8 Finding & Analysis…………………………………………… 9
Chapter – 6
1.9 Recommendation……………………………………………… 10
2.0 Conclusion…………………………………………………….. 11
CHAPTER – 1

INTRODUCTION
1.1 Introduction
PRAN-RFL Group was started journey in 1981.This is view Observance in corporate
mission of the Group they contain over the years expand their behavior in several
areas.
PRAN-RFL is biggest asset their expert team management and dedicated workforce
“PRAN-RFL” started its operation in 1981 as a processors fruit and vegetable in
Bangladesh.
Over the years, the company has not only grown in stature but also contributed
significantly to the overall socio-economic development of the country.
PRAN-RFL is Bangladesh's major farmer and processor of fruits and vegetables.
Their contract growers cultivate the choicest fruits and vegetables, which are
processed in their modern and hygienic factories to highest quality & international
standards.
PRAN-RFL founded 28 years ago by many entrepreneurs with experience in the
product market of Bangladesh.
Different types of products progressively more popular today, forecasts suggest that
annual sales of such products will grow at more than 49 percent for the next 3 years.
Because our population is increasing day by day and products needed is also
increasing. To gain market share in this environment, PRAN-RFL must carefully
target specific segments with features that deliver benefits value by each customer
group
1.2 Objective of the Study
Every graduate student from the business discipline has to participate in
the internship program and complete it with the determination of learning
how to do work practically after achieving theoretical knowledge as a
business student.
It is a perfect chance for every student to gather practical understanding
of the theoretical knowledge that we have gained in our four years
undergraduate life.
A study research should be done for putting the knowledge in practical
manner. I have done my internship in Finance Department of “ PRAN-
RFL Group”
The topic of my report is: “Financial Performance Analysis of PRAN-
RFL Group.

1.3 Limitation of the Study

The study is not out of limitations. The report has certain limitations
which are described below:
The main constraint of the study was inadequate access to information.
Confidentiality of data might be another important barrier that might be
faced during the conduct of this study.
Most of my research is dependent on the secondary sources rather than
primary sources. Time and cost are the key constraints of my report.
1.4 Methodology
The core objective of selecting the topic is to better understand the
beverage industry and its respective marketing strategies. PRAN-RFL
came into the food & beverage industry only a few years back. The
objective of my internship report was to identify whether the evaluating
marketing strategies used by PRAN-RFL for its products are
communicated and perceived by the consumers and their capability of
earning according to their expense. For this several statistical tools are
used for product analysis like 4Ps analysis, matrix analysis, SWOT
analysis. The results are shown through graphs and charts. In assessing
the financial condition of PRAN-RFL, ratio analysis has been done and
graphs and charts are given to show the results. This is a descriptive
research by nature.
Two types of data have been used for preparing this report – Primary and
Secondary data. The main sources of these two types of data are discussed
below:
1) Primary Source: Primary data and information was collected through
interviewing the management personnel’s, customer service personnel’s
and other related people. Most of the information was collected from
(Category Manager, Branch Manager and employees.
2) Secondary Source: Most of the information was collected from
internet, newspapers, magazines, journals, annual report, and other
company publications.
 CHAPTER – 2
Literature Review
1.5 Literature review
PRAN Group was born in 1980. Keeping in view the corporate
mission of the Group they have over the years diversified their
activities in several areas. PRAN's biggest asset is their
competent, dedicated, hardworking, and skillful team of hands-on
managers and employees.
PRAN is Bangladesh's largest grower and processor of fruits and
vegetables. Their contract growers cultivate the choicest fruits
and vegetables, which are processed in their modern and hygienic
factories to highest quality & international standards.
 CHAPTER – 3
Company Profile
1.6 Company Profile
History of PRAN: PRAN-RFL Group stands for Programmed
for Rural Advancement Nationally.
In Bangla "Progoti Rupayone Agrani Noboddom" PRAN
GROUP was instinctive in 1980. Keeping in view the commercial
task of the group they have over the years diversify their
activities. Today they are the biggest processors of fruits &
vegetables in Bangladesh.
They encourage contract farmers and help them grow quality
crops with augmented yields and to obtain fair prices. The Group
comprises of 10 companies. The head offices are located at Dhaka
with production facilities around the country. Their management
is modern personalized to our atmosphere& culture. Their largest
asset is their competent team of hands-on-mangers &committed
employees.
Agricultural Marketing Co Ltd-PRAN-RFL is the first food
dispensation company in Bangladesh to achieve the impressive
dissimilarity ISO 9001:2000 certification for their quality
management system. This ultimate certification ensures that
PRAN-RFL Products reach the consumers table maintaining the
highest level of quality. I addition to ISO, PRAN-RFL has got
worldwide certifications like HALAL & HACCP. They have set
their goal as; “Be Number One”
It Means, that they are always trying to give their customers the
best product which will be in the number one position eventually.
For this goal they give their best potential labor in every stage.
After serving the millions at home successfully, PRAN-RFL has
focused on exports to serve the billions. At present PRAN-RFL is
the largest exporter of agro-processed food items of Bangladesh.
In recognition of the extraordinary performance in export PRAN-
RFL has achieved the best processed agro food exports trophy for
the three last consecutive years. Currently PRAN-RFL products
are regularly being exported to 142 countries of the 6 continents
all over the globe. Major export markets are Asia, Middle East &
Africa.
Corporate Mission of PRAN:
Poverty and Hunger Are Curse:
PRAN-RFL Food's Mission is to never compromise with quality,
towards retaining the position of market leader and sustaining it,
and then reach the global market. Today PRAN’s typical
Bangladeshi taste has been well accepted throughout the world
Employment and earn dignity and self respect for their
compatriots through their profitable enterprises.
Today Bangladesh is a growing market and having competition
from all over the world. We take competition as an opportunity to
prove ourselves.
It also helps us in improving our quality continuously. This
enables us to serve you better through Continuous Quality
Improvement. PRAN Food dedicates its perpetual life to serve the
mankind by providing them with the best possible food, as it is
the primary necessity of mankind. And it is for the kind
acceptance of people that Ahmed has come so far
The Business of PRAN
Pran Agriculture marketing company limited has controlled the
nine individual Business Units on their umbrella.
I. Agricultural Marketing Company Limited (AMCL)

II. PRAN Foods Limited (PFL)

III. PRAN Agro Limited. (PAL)

IV. PRAN Agro Business Limited (PABL)

V. Bango Agro Processing Limited (BAPL)

VI. PRAN Dairy Limited (PDL)

VII. PRAN Beverage Limited (PBL)

VIII. PRAN Confectionery Limited (PCL)

IX. PRAN Exports Limited (PEL)

CHAPTER – 4

Topic Analysis
1.7 Topic Analysis
SWOT Analysis of PRAN-RFL Group

PRAN-RFL is a company That has a wide variety of product serving in

almost all the continents and over 120 Countries of the world. it Serves
the people of all ages of different needs, wants and tastes. Based on its
core competencies and strategic outlook its Strengths etc:

Strength:
• Company operates in nearly 120 countries in the world and they has A HUGE
manufacturing sites around the globe which helps them to achieve the economy of
scale easily. It gives competitive advantage

• Company Is a joint venture so that they can develop long term success.

• They create a huge image at there local country so they a few chance to lose there
position to there competitor.

• Company offers diversified product range with effective and attractive packaging.

• Provides diverse ranging options to meet the diverse aspirations and tastes of people
of all ages.

• The wide diversity of products and brands offered by PRAN-RFL shows the realization
of the simple universal fact- “each individual has different needs and taste.”

Offers customers products and services at an affordable price.

 • Consumers rely and trust in the quality of product because of their belief in PRAN-RFL
brands.

• PRAN-RFL has a strong hold over the distributors and their customers .

• PRAN-RFL has taken the Corporate Social Responsibility (CSR) activities into action.

• PRAN-RFL has a supply chain network globally which helps them to get raw materials
in a more cost effective manner.

• Has a great trade cooperation and support.

Weaknesses:
Internal attributes of the organization that are harmful for achieving the organizational
goals and objectives. PRAN-RFL has the following weaknesses:

• Competitors Rumors: PRAN-RFL has strong competitors locally and recent some
rumor news about them has really low down there image.

• Substitute Products: There are lots of substitute products available in the local
market. PRAN-RFL hasn’t any substitute product this may suffer them in long run.

Opportunities:
External conditions which are helpful in achieving the organizational goals and
objectives.

• Health conscious products demand: Nowadays people prefer eating organic, healthy
and nutritious food which contains low calories and using those products which will
not cause any harm to the environment. This offers a good opportunity to Pran-RFL
to add more innovative products in its product line..

• Emerging new market: PRAN-RFL can expand their business to cover new emerging
market by making substitute for each category.

Threats:
External conditions which could cause damage to the business’ performance .
• Economic downtown: Recession is the biggest threat in the present economy. Most
of the companies shut their operations or make redundancies, people losing their
purchasing power. It has a great effect on all over the world. At such circumstances,
coming times will be very crucial for the company.

• Environmental effects: People are becoming very conscious about the environment
and thus they avoid using products which will cause harm to the environment. As a
result, company need to focus on its environmental friendly products.

• Global competition: Global competition is growing. As a result, trade barriers are

slowly being lifted. Foreign products are therefore now entering the domestic market
with greater ease. New companies are coming up with innovative products

• New local products: New local products are Entering into the market. Since the size
of the local companies is small they have fewer expenses and they provide products
at a cheaper price which helps them grabbing the market share of PRAN-RFL easily.
 CHAPTER – 5

Finding & Analysis

1.7 Finding & Analysis:
Findings
Return or Profitability:

• Return on Assets (ROA): The highest value of the ratio is 9.58%

in year 2019 and lowest is 8.88% in year 2020. So, the performance
of 2019 is so good than 2020.

• Return on Equity (ROE): The highest value of the ratio is 15.23%

in year 2019 and lowest is 17.33% in year 2020. The performance
of PRAN was good in last year.

• Net Profit Margin: It shows the net profitability of two years. In

there, PRAN shows the best performance in year 2020. The highest
value of the ratio is 8.53% in year 2020 and the worst value of PRAN
was 7.45% in year 2019.

• Gross Profit Margin: It shows the net profitability of two years. In

there, PRAN shows the best performance in year 2020. The highest
value of the ratio is 32.16% in year 2020 and the worst value of
PRAN was 30.80% in year 2019

Liquidity:
• Current Ratio: PRAN is in the best position in year 2020 and the
value is 5.36%. But the performance of year 2019 was poor than
year 2020.
Debt Management:
• Debt Ratio: It shows PRAN has the more dependency in year 2020
which value is 90.03% and the value of year 2019 was 83.31%

Asset Turnover Ratio:

• PRAN is in the best position in year 2020 and the value is 4.30 times.
The value of year 2019 was 3.12 times which is poor than year 2020.

Equity Ratio:
• PRAN is in the best position in year 2020 and the value is 85.27%.
The value of year 2019 was 76.86% which is poor than year 2020.

Inventory Turnover Ratio:

• PRAN is in the best position in year 2020 and the value is 8.77 times.
The value of year 2019 was 6.55 times which is poor than year 2020.
 CHAPTER – 6
Recommendation
1.8 Recommendation:

I think the following suggestion and recommendation ate seen feasible for
the improvement of the existing PRAN Group. These are given in below:

A) Quality Ensures:
The firm should ensure quality of PRAN product according to the
consumer need and expectations. Quality of a product is of attributes that
the consumer expects in a particular product. So quality should be select
from consumer viewpoint.

B)Proper Policy: PRAN should follow the proper policy for their group
and they also select right dividend policy.

C) Product Development:

The Company will make as ‘economic and quality product’ for large
market share.

• It improves product quality and adds new product features and

improved styling.
• It adds new models and flanker products (i.e. products of different
sizes, flavors, and so forth that protect the main product).
• It enters new market segments.
• It increases its distribution coverage and enters new distribution
channels.
 • It shifts from product awareness advertising to product preference
advertising.
• It lowers prices to attract the next layer of price sensitive buyers.

1.9 Conclusion:
PRAN is one of the most popular brands in Bangladesh as well as in
international market recently. Now the firm is facing various types of
financial & marketing problems. In this paper some suggestions and
recommendations have been given so that the firm can overcome those
problems. I believe that the management of PRAN group is more
experience as well as they are also thinking about those problems. I think
management should be took care this problem.

So, through the observation of the activities and information collected

from the interview of participant such as wholesalers, retailers, customers
it can be said that this firm is being profitable conduct becomes the firm
is not to strong on counter remarkable competition, workers
dissatisfaction, and for sufficient demand in comparison with the
manufactured goods. But the firm is not being able to perform its financial
activities with efficiency. In this condition continues the firm will be
endangered and undergo less in the long run. But it is possible to expand
this firm to a greater extant, if it can make use of its present opportunities
and facilities properly and it will be possible for it to earn more profit than
it is earning now. Therefore, the firm will have to give importance to
perform the financial activities efficiently.