Professional Documents
Culture Documents
Internship Report
On
“Portfolio Management Services &
Performance Evaluation of
IDLC Investments Limited”
Prepared by:
Tanvir Ahmed
ID: 142006030
Green Business School
Letter of Transmittal
Dear Sir,
It gives me enormous pleasure in preparing this report that was assigned in fulfillment of my
internship requirement. This paper has been valuable to me as it contains the reflection of my
working experience in IDLC Investments Limited, Head Office for three months period of my
internship. In this report, I have given my best to illustrate the experiences and knowledge I
gained from this internship period.
I would like to mention that I am extremely grateful to you for your valuable assistance,
extreme understanding effort and constant attention as and when required in accomplishing the
paper.
I shall be very pleased to answer any query you think necessary as and when needed.
Sincerely,
-----------------------
Tanvir Ahmed
ID: 142006030
FIN 499
Green Business School
Declaration
-----------------------------
Tanvir Ahmed
ID: 142006030
Major in Finance
Green Business School
Green University of Bangladesh
ii
Acknowledgement
I would like to convey gratitude to the Almighty Allah for giving me the strength and
knowledge to successfully complete this report within reasonable time.
This internship report is the accumulation of many people’s effort. For this reason I am obliged
to the people who have helped me to organize this report and for their opinions, suggestions,
instructions and support and appropriate guidelines for this. I have received endless support
and guidance in preparation of this report from numerous sources. I would have like to take
this opportunity to thank them all.
I would also like to thank my internship supervisor, Mr. Apel Mahmood Rifat, Senior
Lecturer, Green Business School, Green University of Bangladesh, for his continuous
guidance and assistance in preparation of this report. I am immensely thankful to him for the
supports during my Internship period.
Lastly, I would like to express my earnest gratitude to all the Members of DPM team, Mr.
Mohammad Nayem Uddin, Mr. Makin Rishalat Jitu, Mr. Muyeed Hasan, and Mr. Abir Hussain
Talukdar. They all helped and made a friendly environment to work during the internship
period. I deeply grateful to Mr. Mohammad Nayem Uddin (Assistant Manager) at IDLC
Investments Ltd. who directed me towards the information I needed to complete this report.
iii
Executive Summary
IDLC Investments Limited (IDLCIL) has started its operations from August 16, 2011 to offer
merchant banking services to both individual and institutional clients. As per requirement of
the Securities & Exchange Commission (SEC), IDLC formed a separate subsidiary on May 19,
2010 in the name of “IDLC Investments Limited”, to transfer its existing merchant banking
activities to the newly formed entity. IDLC applied to SEC to transfer the existing merchant
banking license of IDLC Finance Limited to IDLC Investments Limited. In its short period of
time IDLCIL has achieved a lot and became one of the major contributors of profit and revenue
for IDLC Finance Ltd. Discretionary Portfolio Management (DPM) has played an important
role in the achievements of IDLCIL. They are successfully serving their individual and
institutional clients. This report describes the learning and experiences derived from working
in IDLCIL as an intern for three months. Firstly, I wrote a brief about IDLC. Then I gave small
descriptions of their departments, my contribution and my experience. Through the challenges
and practical learning, I have been able to discover my capabilities and lacking. I have also
included the SWOT, PESTEL & Ratio analysis & financial highlights. The remaining part is
findings, analysis, recommendation & conclusion. In the process, I have also gained and
improved some corporate skills which can be of great value like communication skill,
multitasking, flexibility, being calm and humble.
iv
Table of Content
Introduction 1
Bibliography 59
vi
Chapter-1
Introduction
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Introduction
Internship is the period of time where a student receives a practical exposure to the real corporate
world. In the four year of our BBA course we were taught how the corporate life is and how to
act to different situations. But in our internship period we get the first-hand experience of all we
have learnt in our 4 years of bachelor life. Internship helps a student to relate his academic
learning and teaching in the real corporate world. He is able to see how actually the corporate life
works and whether the things we have learnt works or not. Business courses are now shifting
towards a more practical side and Internship course certainly helps students to build that practical
knowledge.
To get an overall idea about the functions & operations of the Discretionary Portfolio
Management Department of IDLC Investments Limited.
Specific Objectives:
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Methodology
Information Used for preparing this Report is collected from IDLC Investments Ltd.’s
Website and Annual Reports from IDLC Investments Research Departments Archive.
Therefore, The Source of Information for this Report is both Primary and Secondary
The prime limitation was time constraint. I have learned a lot of things during my
internship. However, it was not enough for me to learn and develop knowledge about all
the activities and operations of the department. Hence I was unable to conduct more in-
depth and detail oriented analysis and include that in my report.
Every organization maintains its own secrecy that is not revealed to external world. IDLC
Investments Limited was no exception to this. Some of my colleagues did not disclose
enough information for the sake of confidentiality of the organization. In a few other
cases, I was not allowed to share some sensitive and confidential information of my
department due to business secrecy.
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Chapter-2
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Vision:
“We will be the best financial brand in the country.”
Mission:
“We will focus on quality growth, superior customer experience and sustainable business
practices.”
Corporate Philosophy:
“Discharge IDLC’s functions with proper accountability for actions and results and bind
ourselves to the highest ethical standards.”
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Strategic Objectives:
Grow and develop our talent pool
Fully leverage new core banking platform
Optimize distribution points
Grow and Diversify funding sources
Grow Sales and Service Capabilities in Consumer Division
Aggressively grow SME Portfolio.
Focus on top tier clients in corporate
Consolidate capital market operations and enhance capabilities.
Embrace internationally accepted corporate governance and sustainable business
practices.
To extend the activity of IDLC Finance Limited management created three wholly owned
subsidiaries. They are:
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Investment Banking
& Research
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Currently there are 4 types of account managed under Discretionary Portfolio Account. This team
consists of 6 members. These accounts are fully managed by the portfolio manager.
Investor cannot take decisions regarding buying new stock or selling existing stock, but investor can
check his portfolio when needed. Portfolio manager is also responsible for sending quarterly portfolio
report through email. As mentioned earlier, DPM has 4 products:
MaxCap
MaxCap is a personalized discretionary investment account designed for high net worth clients, both
individuals and institutions. IDLC Investments Limited, Portfolio Manager, will follow a disciplined
investment process and structured approach to build portfolio, tailored to specific needs and
constraints.
MaxCap account is ideally suitable for any individual having little or no experience of investing in the
capital market of Bangladesh. MaxCap also allows experienced investors and institutions to achieve
greater sector and style diversification in their investment portfolios.
Key Features
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Key Benefits
Analysis and periodic review of individual risk profile and investment objectives.
Make the best investment decision by the amount of money client is going to give.
Reconstruct the portfolio when market risk is high.
Risk control and portfolio performance reviews on a regular basis.
Periodic reporting of the portfolio and financial status.
Portfolio Manager will adopt a clear and transparent investment process in terms of portfolio
composition, stock selection, trade execution, monitoring and rebalancing.
Key Features
Minimum Investment Amount (Individual/Institutions): BDT 10 Lacs
Minimum Investment Horizon : 2 (Two) Years
Margin Loan Facility : N/A
Account Opening Fee: BDT 500
Management Fee (Fixed Charge): BDT 5,000 (monthly)
Equity Incremental Fee: 10% on incremental value (quarterly)
Settlement Fee: 0.40% on transaction value
Early Exit Fee (within tenor): 0.50% on the withdrawal/closing amount
Out of Pocket and Third Party Charges (Central Depository, SMS charges etc.): At actual basis
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Key Benefits
Funds will not be invested in securities having lock in period of more than 1 year.
Funds will not be invested in private venture capital.
Funds amounting to more than 30% of your total assets will not be invested in unlisted
equity/debt securities, including IPO and pre-IPO private placements.
Funds amounting to more than 30% and 60% of total assets will not be allocated in a single
security and single industry respectively.
The Portfolio Manager will try to minimize risk by selecting fundamental and potential
securities and achieving adequate diversification.
Finally and most importantly, the Portfolio Manager will continuously monitor the performance
of your portfolio and the capital market conditions. Your portfolio will be actively balanced in
line with the changed market scenario, if it is deemed prudent.
Key Features
Minimum Investment Amount (Individual): BDT 10 Lacs
Minimum Investment Horizon: 2 Years
Documentation Fee: Taka 500
Management Fee: 3.50% p.a. on the value of the securities, this management fee will be
accrued per day basis and charged on a quarterly basis. This will be charged as follows and
show in the portfolio
Accrued fees and charges: Market value of the securities on that day*3.5% / 360
Settlement Fee: 0.35% on the transaction value
Early Exit Fee (within 1st year of investment): 0.50% on the withdrawal/closing amount Early
exit amount* 5%
Annual CDBL account renewal fees: BDT 500
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Key Benefits
Year-end profit sharing opportunity.
Skilled professional service at the minimum cost.
Tax rebate opportunity for individuals.
Profit and loss will be shared will be proportionally.
Key Features
Minimum Investment Amount (Individual): BDT 10 Lacs
Minimum Investment Horizon: 3 Years 6 Months
Documentation Fee: Taka 500
Management Fee: 3% p.a. on the value of the securities, this management fee will be accrued
per day basis and charged on a quarterly basis. This will be charged as follows and show in the
portfolio
Accrued fees and charges: Market value of the securities on that day*3% / 360
Settlement Fee: 0.35% on the transaction value
Early Exit Fee (within 1st year of investment): 0.50% on the withdrawal/closing amount Early
exit amount* 6%
Annual CDBL account renewal fees: BDT 500
Key Benefits
Higher growth potentials with the combination of both money market and equity market
investments.
100% capital protection.
Zero downside risk when unlimited upside potential.
Skilled professional service at the minimum cost.
Tax rebate opportunity for individuals.
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Easy Invest
We are very familiar with the banking DPS system; this account has the similarity with that. Only
dissimilarity is bank does not accept the extra amount of money as deposit, IDLCIL does.
Key Features
Minimum Investment Amount: start from 3000 TK
Minimum Investment Horizon: 5, 10, 15 and 20 Years
Documentation Fee: Taka 500
Management Fee: 3% on the portfolio per year
Settlement Fee: 0.50% on the transaction value
Early Exit Fee (within 1st year of investment): 5% on the withdrawal/closing amount before 1
year & 1% after 1 Year.
Key Benefits
Flexible and affordable investment plan
Disciplined and systematic approach
Reduced risk because of cost averaging
Professional fund management backed by strong research
Tax rebate opportunity
Capital gain is tax exempted
Accidental death insurance coverage up to 1 lac BDT
Though they are committed to promote the 4 products equally but MaxCap and Easy Invest are the two
products which are popular among the clients.
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This team consists of 4 members and there is only one kind of account under Non- Discretionary
Portfolio Account. In IDLC it is called CAP Invest. Cap Invest is an Investor's Discretionary Account
that provides margin loan facilities to the investors. This is the only account where client himself
manages his portfolio. It means client can buy and sell his own share when he wants to. Though in the
margin loan account if Equity to Debt ratio is less than 50% then he must maintain some bindings and
if Equity to Debt ratio is lower than 30% S/He can buy securities that is approved by IDLCIL. Some
other services provided by this department are as follows:
Registering the securities, and collecting dividends and bonus shares
Subscribing to the rights issues
Keeping the securities in safe custody
IPO Application
Key Information
Cap Invest clients will have absolute discretionary power to make their own investment
decisions. IDLC, the Portfolio Manager, will provide all support for efficient execution of the
trades.
Clients will be allowed to invest only in the securities carefully selected and approved by the
Portfolio Manager.
The Portfolio Manager will extend Margin Loan to the clients to facilitate enhancement of their
return on investments through leveraging.
All the securities purchased for the clients shall remain in lien in favor of the Portfolio
Manager.
Clients will have access to various research materials on market, industry and companies
prepared by the independent research team of the Portfolio Manager.
Investment in "Cap Invest" will be considered allowable investment for obtaining tax rebate.
Additionally, capital gains from investments are currently completely tax-exempt.
Clients can place Trade Orders through Internet/SMS/Mobile Application.
Minimum Investment: BDT 1 Lac
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Policies
Margin Call: In the event of the client's equity falling below 50% of the total debt liability, the
Portfolio Manager will call for additional margin deposit from the client to maintain the
stipulated equity to debt ratio of the given loan ratio
Mark to Market (MTM): MTM is a gradual adjustment process to protect clients equity level. If
equity level drops, deposit or partial sell will be required by the next working day to raise it.
Any account having Equity to Debt ratio (E/D ratio) below 30% will be auto adjusted through
daily Mark-to-Market (MTM).
This department does two major works of IDLC Investments Ltd, research on capital market and issue
management. This team comprised of 5 members. They do the research and pass the findings to the
Managing director of IDLC Investments, who then carefully examine the finding and pass along the
findings to the debarment who manages portfolio. IBR also helps the companies to create IPO. So far,
they created the IPO of some big companies in Bangladesh, for example, Energypac, Impress-Newtex,
Popular etc. Along with research and issue management IBR also do Underwriting, Corporate
Advisory and Private Placement.
Operations and Settlement is a supporting department for the 3 Functional department mentioned
above. This department has 4 members. This department carries out the account opening process and
delivers the documents that clients often request. Also, at the end of every day they synchronize trade
data of client’s portfolio with the data send by brokers.
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This department is also a supporting department which consists of 5 members. As all the money
from the clients is deposited in the bank, this department has a huge responsibility. They see out
all the transactions of IDLCIL that happens in the bank. They also prepare quarterly and yearly
budget which is then passed to the Managing Director of IDLCIL.
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Chapter-3
My Job Description
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Page 17 of 59
organization. He also introduced me to my supervisor Mr. Abul Ahsan Ahmed who is the Head
of Discretionary Portfolio Management. He also introduced me to Mr. Md. Moniruzzaman who
is the Managing Director of IDLC Investments Ltd. All the employees including the managing
director and my supervisor were amicable and greeted me well. My primary role was to assist all
the team members of DPM. And more specifically to check the documentation of their product
and service. One of the most important parts of the first week was to know and get acquainted
with the company policies and corporate culture. The environment is very friendly and the
seniors are very concerned about the learning aspects of an intern.
The first week was all about understanding the office culture and my responsibilities. The second
week was also a learning experience for me. Our department had different types of
products/services to cater to the clients. So, my second week responsibility was to know the
different products of the DPM department. The product descriptions are given below:
Easy Invest: Easy Invest allows clients to invest in the capital market with a minimum
investment of 3,000 monthly. If the clients want to invest more then they invest in 1,000
multiples. There are 3 tenure choices for the clients that are 3, 5 and 10 years. The tenure
indicates that the clients are willing to invest monthly for that specific number of years. For
example, a client wants to invest 3,000 monthly for 3 years. It means that the client will have to
invest 3,000 monthly for the 3 years and all the returns accumulated from the capital investment
will go to the investors. Since it is run by the Discretionary Portfolio Management it will charge
3% annually as management fees on the market values of the stocks. The trading strategy for this
product is that the portfolio manager will invest in blue chip stocks (Stocks which has good
governance, growth potential and gives regular dividends) and will continue to invest in those
stocks for the rest of the tenure. It will take the strategy of passive investing. Instead of investing
at a go it invests periodically which reduces risk to a level. The department has high hopes about
this product since a lot of people in our country have the ability to invest a monthly of 3,000 tk.
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Max Cap: This product is mainly for large institutions or high net worth individuals. It requires
an investment of minimum Tk100, 000 for 2 years. As the name suggest this product are mainly
for people who wants high return on their investment. Unlike easy invest in this product the
clients can choose what type of investments they like. It does not mean that they can choose
stocks but they can instruct whether they to invest in only on stocks which follows shariah rules
or not. The portfolio manager also asks the clients about their risk and return appetites and trades
in the market accordingly.
Capital Protected Scheme: This product is more of a conservative product. The main aim of the
portfolio manager is to ensure that he/she is able to protect the initial investment of the client. It
also requires a minimum investment of Tk 100,000 for 3 years. The portfolio manager takes a
rather conservative approach for this product and allocates the capital accordingly.
Profit Loss Sharing: In this product the department puts a 70:30 investment with the client. So,
if a client invests Tk 700,000 then the department will also put in Tk 300,000 of its own and then
will the profits and loss of the investment according to the ratio.I got to know that the clients are
more into the Easy invest and Max cap product. Easy invest has an average return of 15%-20%
and Max cap has an average return of 20%-25%. I spent the second week in knowing all the
products in details so that I can communicate with anyone who asks about the products.
The third week was mainly about learning about the documentation requirement of ‘Easy Invest’
and ‘Max Cap”. The ‘Easy Invest’ is now the most popular product in DPM. As a result, a lot of
application forms for ‘Easy Invest’ account come daily in the office. For this reason, I was tasked
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to learn about the documentation requirement of the product. The documents those were required
for the ‘Easy Invest’ and ‘Max Cap” account is given below:
The applicant must have 2 passport size pictures and the signature of the applicant must
be on the back of the pictures.
In case of single account there must be a nominee. One picture of nominee must be
provided with signature of the nominee on the back of the picture.
In case of joint account nominee is optional.
The applicant must provide NID for verification. If the applicant does not have NID then
the applicant can provide photocopy of Passport for verification.
NID of nominee is also needed for verification. If the nominee does not have NID then
they can give Passport for verification.
If the applicant is service holder then they must provide visiting card or any other
information that verifies their employment.
A cheque leaf / Bank Statement/ Bank Certificate.
If the applicant is business holder, then they must provide trade license of their business.
Know Your Customer (KYC) form that gives the details of client’s source of fund.
These are the documentation requirement for opening ‘Easy Invest’ and ‘Max Cap’ account. So,
from this week I was given the responsibility to see whether all the documentation requirements
are given and all the information are given in the forms. Then I have to also maintain a data of all
the new forms to track and keep information of the forms.
As this week was the end of the month also the end of the Quarter 2, lots of accounts were
coming in. I and the other intern were in too much pressure in this week due to lots of accounts.
After we checked the documentation, we sent the file to the Operation department where they
input the data and open the accounts.
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The fourth week was nothing different from the third week. Since I have learnt about the
document requirements I was tasked to oversee the documents and the forms. The challenges I
had faced during this task are given below:
Lot of files had pictures of applicants without their signatures in the back.
Some applicants had given only one picture.
Some files did not have nominee pictures.
Some files did not have NID or Passport verification of the nominee.
Some applicants which are service holder did not give their visiting card for their
employment verification.
Some applicants which have business did not give trade license for prove.
Relationship Managers did not fill up the Know Your Customer (KYC) section.
Some files did not have signatures in FATCA which is an information section in the form
about the citizenship of the client.
These were some of the notable problems or challenges I had to face while checking the forms
and the documents in this week. Although my main responsibility was to check the documents
and files of ‘Easy Invest’ and ‘Max Cap’ I was also given the responsibility to handle the
problems of the documents. The ways these problems were handled are given below:
First, I give input in the excel database and write the documents that did not come with
the files and the other problems associated with it.
Then I report to Mr. Muyeed or Mr Abir about the problems of the files. They are the
people who are tasked with maintain connection with the relationship managers.
If the relationship manager was present while checking the files then I had the authority
to directly notify the relationship manager about the missing documents in the files.
If the file had major problems in documents and information then I was instructed to keep
the file to myself until the problems are rectified by the relationship manager.
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Me and the other intern, Mainul, were also given the authority to call the relationship manager
and asked them to collect the missing information and documentation.
This week, we were under lots of pressure too. DPM department sends portfolio statement to
clients after each quarter through email. As this week was the first week after the end of Quarter
2, lots of phone calls were coming telling us they did not receive the portfolio statement. I
learned that this was a common problem after each quarter due to the IT problem. So, we had to
note down their query and after the end of each day we passed the notes to Operation department
where they sent the email individually.
Week 5 (8th- 12th October)
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occasionally I was given the task from operation department to input and open the Easy Invest
account. Finally, so that I know about client’s info and status. This information was asked by the
DPM team members frequently. So, to help them I was given access to the “Rasalas”.
The second new responsibility I was given was to prepare a document called Mandate setup or
DDI (Direct Debit) form which is available in the ‘Easy Invest’ forms. This Mandate page is the
most important documents in the ‘Easy Invest’ form. Clients sign this form so that DPM is
authorized to pool the monthly EMI from client’s respective bank account through direct debit.
This mandate form is filled up by Mr. Muyeed and then sent to IDLC’s partner bank Standard
Chartered Bank (SCB). SCB then take the necessary steps and pool the fund from the client’s
bank account on every 7th of the month for the rest of the tenure that a client signed up for. So, I
was given the task to tear the Mandate page from the account form and then pass it to Mr.
Muyeed who then filled it up and sent it to the bank.
During this week, I had to learn these new things and was feeling the pressure of working in a
corporate world a bit. I was told by Mr. Muyeed that next week I will be asked to learn some
new things again which will increase my responsibility a bit more.
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required to complete the whole processes. In my part bank input is the vital part since through
this information Accounts and Finance department will pull funds from the applicant’s account
every month. So, if I put a wrong input then it could be a problem. But the good thing is that
after every step, one has to take approval from any senior of our department. Hence, after I
complete the final step I have to select an approval. Then the selected approver will check all the
information I have inputted and will approve it if it is correct and if it is not correct then he will
give back to me to rectify the mistake. This system reduces the chance of any big mistake in the
input. The next two steps of opening an account, Account setup and Cash collection, is carried
out by the senior employee from DPM and Operation department respectively.
My work responsibility has not changed much in this week. I checked the documentation of the
account opening forms, answered to clients’ queries, make essential documents from the
‘Rasalas’ software and occasionally input basic information in the Rasalas to open new accounts.
But I have been also given some other responsibilities. In the ‘Easy Invest’ account opening form
there are two pages which are important. One is the Insurance signature paper. If the applicants
are interested to take insurance, then they have to sign in that paper. If they are not interested,
then they will not sign in the paper. The option to take insurance is optional. The insurance is on
some basic medical facilities and have only a premium of Tk.74 per year. The insurance is given
by Green Delta Life Insurance Company. Another page is the Mandate or DDI page. This page is
the most important page in the form. As stated in my earlier journals that every month IDLC
Investment will automatically pull the monthly investment (EMI) of the clients from their
respective bank accounts. So, in order to do that we need all the bank information and client’s
signature to create an auto debit system. Information like the bank account name, bank name,
branch name, routing number are needed in the mandate or DDI page. So, my responsibility was
to separate the two pages from the account form. First, I had to see whether they will take
insurance or not. If the applicant is taking insurance, then I have to separate the paper from the
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form and if the applicant does not want insurance then I do not separate the page. There have
been some forms where the applicants ticked the box that they want insurance but had no
signature in the page or the applicants did not tick the box but had a signature in the page. For
both the circumstances my responsibility was to call the relationship managers to confirm the
clients’ stance on the insurance. Then I checked the mandate page and check carefully whether
all the information in the page is correct. I compared the information with the bank statement
provided by the clients’. If a problem is identified in this page, then I contact Muyeed Bhaia who
then contacts the clients for the confirmation of the bank information. After separating the
mandate page from the form then we print the necessary information, as mentioned earlier, by
using Rasalas. After printing and checking them again we send the mandate pages to our partner
bank Standard Chartered Bank and they take the necessary steps to set up an auto debit system
with the respective banks.
I needed to be very careful while working with the mandate forms. This is a very sensitive issue
for the DPM department and I was surprised that they trusted me to handle this matter. I tried to
do by best and they asked me to do this procedure on every Wednesday, so that they can send the
mandate form to the Standard Chartered Bank on Thursday.
This week I haven’t been given any new job responsibilities. As usual I answered to client’s
queries, made essential documents for clients and relationship managers (RM) and checked the
documentation process of the account opening forms of both Easy Invest and MaxCap accounts.
However, lots of Easy Invest account forms were coming during the first three days of the week.
And there is a reason behind it.
You see, there is a campaign running by the DPM department known as “Lucky7”. This
campaign is like extra incentives for the RM to bring more Easy Invest accounts. To be eligible
for this campaign a RM must bring at least seven Easy Invest account in one month. Then the top
seven RM, according to who brings most accounts, are rewarded by financial incentives. The
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RM who brings the most account will get 8000TK worth of Prize bond and the RM who comes
seconds gets prize bond worth of 7000tk. In this way the top seven RM are rewarded every
month. As this was the last week before October month ends, the entire RM were bringing lots of
accounts so that they could win the campaign. That’s why there was lots of account coming in
this week. Easy Invest accounts were coming from all the IDLC branches around the country.
Sometimes documents were missing so I had to make calls to the RM to gather the document as
soon as possible. There was a rush in doing works in the first few days of the week. The result of
the “Lucky7” will be announced in the next week and the RM will be rewarded in the following
week.
In addition to the work I did, I was given access to another software name “MBank”. This
software contains client’s information, necessary documents like Tax Certificate, Portfolio
Statement, Transaction statement and Acknowledgement report of the all the IDLC Investment’s
products and services. “Rasalas” contained some of the information of Easy Invest but “MBank”
contained information of every products and services offered by IDLC Investments.
I haven’t got to do anything new or learned anything new this week. However, the pressure of
work I usually do was very high. This was because of the “Income Tax Fair”, which was going
on this week. According to the Tax Law of Bangladesh, there is a 25% tax rebate on the amount
that is invested in the capital market of Bangladesh. As fund from the DPM department are
invested in Capital market, DPM department provide Tax Certificate to the clients who asked for
it. As this was the week of “Income Tax Fair”, almost every other client was asking for the Tax
Certificate. Many of the clients already got that Tax Certificate before when DPM department
emailed them on July 2017 but many of the clients were asking for it again. Thus, to satisfy the
clients we had to give them the Tax Certificate again. Tax Certificate was given for the period of
1st July 2016 to 30th June 2017. Along with the tax certificate, Transaction and Portfolio
statement were given as a supporting document. Transaction statement had records of all the
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activities that took place during that period and Portfolio Statement had the value of all the
stocks as at 30th June 2017. So, we had to print these documents, took signature of the Assistant
Manager of DPM, Mr Nayem Uddin, manually check if all the values were correct, then scan
those documents before emailing or sending it to the clients. In this week I and Mainul (another
Intern of DPM) had to make around 200 Tax Certificate!! Along with my usual work of
answering to client’s queries, making Acknowledgment report for relationship managers (RM)
and checked the documentation process of the account opening forms of both Easy Invest and
MaxCap accounts, I had to make those Tax certificate. And this is why the pressure was so high
this week. I think this week I finally got the taste of how it is like to work in Corporate World.
This week was just a usual week at work. I literally did nothing new this week at office, just the
usual duties that were assigned to me. I answered to client’s queries through phone, made
essential documents for clients and relationship managers (RM) and checked the documentation
process of the account opening forms of both Easy Invest and MaxCap accounts, occasionally
inputted account opening information in the “Rasalas”.
Although, I was told to go to a potential client’s office which was near my home. They were
supposed to open 2 Easy Invest Account; each has an EMI of TK3000. So, I went to their office
and they wanted to know how we operate and what do we do with their money. I answered them,
and they looked convinced and happy with my answer. I took this opportunity and proposed
them to increase their EMI to Tk5000. After telling why an increased EMI will give them an
extra edge they looked convinced and agreed to increase both of their EMI to Tk5000. When I
told the story to the Bhaias at the office they seemed happy and so was I. This is the first time I
meet a client face to face. I was nervous at first because if I say anything wrong I might give
them a bad impression about IDLC. Despite that it was a successful meeting for me.
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During the first 3 days of this week I just did my usual work that I have been assigned to do
since the start of my internship. I answered to client’s queries through phone, made essential
documents for clients and relationship managers (RM) and checked the documentation process
of the account opening forms of both Easy Invest and MaxCap accounts, occasionally inputted
account opening information in the “Rasalas”. But in the last 2 days I was given an extra task to
perform.
As I mentioned in some of my previous journals, Easy Invest account holder can choose to get
insured by Green Delta Insurance by paying a yearly premium of Tk74. As I have noticed, most
of the account holder chooses this option. This insurance package insures the account holder
against accidents leading to death or loss of any organ. Account holder who chooses this option
can get up to Tk 1 lac if their claim is valid. I was asked by the fund manager of DPM, Nayeem
Bhaia, to find out the entire account holder who chose to get the insurance in the last 2 quarter.
So, I used the “Rasalas” software and the insurance policy paper sent by Green Delta to find out
the account number who chooses to take insurance option. This was not as easy as it sounds.
There were cases where there were 2 or 3 different people with the same name. In those cases, I
had to match the address that was written in the policy paper against the address in the “Rasaals”.
This was the only way to be sure which person took the insurance if they had the same name.
Thus, in those scenarios I had to check manually. After working till very late for 2 consecutive
days, I was able to do what I was asked to do. When the list was the ready we sent the list to the
Finance and Accounts department. They made a bill for those all those account holders and sent
a cheque to Green Delta Insurance. While working with this insurance stuffs, I got to use some
excel formulas that I hardly used before like Pivot table, Midpoint etc.
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As this was my last week of internship, I had lots of work to do. I answered to client’s queries
through phone, made essential documents for clients and relationship managers (RM) and
checked the documentation process of the account opening forms of both Easy Invest and
MaxCap accounts, occasionally inputted account opening information in the “Rasalas”. In the
last week, DPM department had a meeting about their products. In that meeting they decided to
increase the minimum investment from TK 1 lac to TK 5 lac for MaxCap. Because of this
decision, lots of RM was calling to know why this decision was taken. So, there was an extra
pressure because of that.
In this week I also had to meet 2 clients from GrameenPhone. They wanted to talk about Easy
Invest and MaxCap and were interested to open accounts. So, I was sent there to talk about the
products. After pitching them about the products they decided to go for Maxcap, as they thought
it was a best way to invest in capital market, without being directly in contact with the market.
Besides doing all those work I had to show and teach the new interns all the work that I have
been doing during this internship. I showed them everything to know about the two software that
I worked with, “Rasalas” and “MBank”. I also taught them the documentation process of account
opening forms, along with all other works that I was assigned to do.
This was my first experience into the corporate world. It was a unique experience as I learned
about the corporate culture. The amicable environment in the office made it easier for me to
work and feel at home. My supervisor has helped me a lot during this time. He was always open
for help whenever I needed to know something. Hopefully this experience will help me in my
future corporate life.
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Chapter-4
My Contribution & Learning
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Account Input:
After few weeks of my internship a new intern was also taken in our department due to the heavy
workload. Due to his arrival my work responsibility changed. He was given to check the files
and documents and I was shifted to a more sophisticated work. As mentioned above that if all the
required documents are okay then I used to send it to the operations department to input it on the
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software. But due to heavy workload I was given the task to do the account input part to reduce
the stress on the operations team. ‘Rasalas’ is the software that is used to make profiles for the
approved ‘Easy Invest’ account holders. To create a profile there are basically three steps:
Account Input, Account Setup and Cash Collection part. In account input all the basic
informations like name, address,e-mail,mobile and bank information are inputted in to the
system. In account set-up information like the tenure and monthly installment of the clients are
inputted. In cash collection the entry of cheque or cash collection for the opening of account are
made. In Account Input there are again two parts. First the basic information and the other part is
Customer Relatives. In this part we put the information of the nominee. I was assigned to give
inputs of Account Input part in the software for the ‘Easy Invest’ account holders.
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Technical Skills:
During my internship tenure I got to learn a lot of technical stuffs in the investment banking
world. First I got to know how a Discretionary Portfolio Management department works. They
make different products based on risk and returns and tries to sell it to the clients. I also learnt
how the whole banking system works. Mainly in the banking system it is all about direct
marketing. The banking and investment banking side depends entirely on the effort of the
relationship managers. I also got to know what are the documents requirements in order to open
an account in the portfolio management department and why it is needed. The banking system is
the most regulated sector in Bangladesh. Hence proper documentation is needed whenever any
client is interested to open an account. I also got know about the software ‘rasalas’ where input is
given for Easy Invest account.
Analytical Skills:
The investment banking sector required strong analytical skills to succeed. Presence of mind is
required to carry out banking job smoothly. I had to use my analytical ability whenever I faced a
problem. Most of the problems I faced were on the required documents and information lacked
in any account. As mentioned earlier that these files come through courier hence I had to contact
with the relationship managers to eradicate the problem. The supervisor instructed me and my
fellow intern that whenever as problem arises regarding the forms we had autonomy to contact
with the relationship managers and find a way to eradicate the problem. We just needed to give a
report to him at the end of the day about those things. His autonomy towards this responsibility
gave us the chance to use our analytical ability to solve problems.
People Skills:
Mostly my interpersonal skills developed a bit due to my internship tenure in the organization.
As mentioned earlier that I had to contact with the relationship managers regarding the forms
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issue. So I had to learn from my seniors how to communicate with them. I had to do this duty
from the entire three months of my internship and hence I have developed an interpersonal
communication skill. I had also improved my intellectual skills and some of the situation
required to use my intelligence to get the work done. My supervisor told me during the briefing
of my responsibility that I might have to use my own intelligence to get some work done and I
should not bother the seniors for that.
Since it is a service oriented company it is imperative to have the customer handling skills.
Regarding the documents sometimes I had to directly contact the clients. It required a goof
customer handling skills to do so. Although the task at the start was daunting but with time the
communication with the clients seemed easy. Hence I can say that my customer handling skills
improved drastically due to the internship experience.
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developed more on practice than on reading theories I have learnt a great deal of excel skills
during my internship. The regular work life helped me a lot in acquiring some experimental
learning which otherwise would not have been possible.
It is inevitable to face difficult circumstances while working on a regular basis. I had to also face
some problems while working during my internship tenure. The different challenges gave a shot
overview how it will be if I work in an Investment bank.
The most challenge I had was when I was dealing with the relationship managers. I had to
contact the relationship managers whenever there is a lack of information or document in the
form of Easy Invest form. I had to specify them what they need to fulfill and needed to know
when they are going to fulfill it. Relationship Managers usually remain busy during the working
hours to make new clients for the company. Another problem is that our department had only
one relationship manager. So we took the help of the relationship managers of other departments
of IDLC Finance for this product. So it was difficult to communicate with them. Sometimes I
had to remind them two to three times to fulfill the requirements as they forget to fulfill it.
Another problem I faced in my internship period is with the software. ‘Rasalas’ software was
used to create a profile of clients in the server. Although the automation helped the company but
the software has some lacking. It is normal for a human being to make a mistake during input as
he/she has been working in it for hours. Most of the information was editable expect the Name
and Address. So if any mistake is made in the name and address part then I had to inform my
senior to talk to the IT team to rectify it. After communicating with them the IT team used to
take about an hour or so to rectify the problem which is a big problem according to me. Like the
relationship manager the IT team is also centralized that means the IT team is for the IDLC
Finance and its three subsidiaries. So it was also difficult for them to solve a problem instantly.
So whenever a mistake is made in name and address part an hour is lost to rectify that problem.
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Experience Vs Expectation
I had a great experience in my internship period. Before starting my internship I thought had all I
have to do is photocopy and scanning. But fortunately I was wrong. I was involved in more work
than I expected. To be honest I did not expect that much from my internship period. I got I will
be given photocopy, scan and data input works. Although I had to do those works but I was also
involved in works that required more analytical skill. For this reason I had a great experience in
my internship period.
I also expected that the working environment will be uptight and rigid. I never expected that my
seniors will be amicable with me. I even thought I have to use Sir for my seniors. But the
experience was totally different. The whole working environment was casual more like a
marketing firm. The seniors were amicable and always supportive and I was instructed to call
them Bhaiya instead of sir. Even I used to call our Managing Director as Bhaiya. So as it can be
seen that the whole environment gave a very good feeling to work in. I thought I will have
trouble to be in an office for such long hours. But the environment was so casual and friendly
that I never felt suffocated there.
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But I also got a real life experience from the whole internship period. The environment is
friendly but still they expect to get the work done. All is well is the performance is good. If it
isn’t then we might have a problem. Since I was an intern I did not get the real taste of it but I
have seen around me what can happen if I cannot perform to a minimum level. I don’t think it as
an adverse thing because it is not wrong to expect to get the work done. All in all the total
experience was something to remember.
Since I have majored in Finance my goal was always to be in Investment bank to be specific. So
I was elated when I got selected as an intern in an Investment bank and that too in a top Financial
Institution’s Investment bank. IDLC is a big reputable NBFI. In terms of local companies they
are at the top of the list. So getting the experience of internship was always invaluable. My goal
during my academic life was to get in to the Capital Market line. When I studied Investment
theory in GUB I got instantly interested towards it. The curiosity to know how and why the
market behaves was of great interest to me. I wanted to know how a stock is deemed
undervalued or overvalued and how they value it. I have learnt a great deal during my academic
life thanks to the wonderful supportive faculties I had in my university. But getting the first-hand
experience in IDLC Investments was something special.
I used to sit very near to our fund manager who was also my supervisor. So most of the time I
used to ask him questions regarding the capital markets. He was always answering my queries
and it ignited more interest towards this sector. I would say that I got more motivated to get in to
this sector after doing my internship in IDLC Investments Ltd. Through my supervisor I have
also met the analysts who value the stocks that are traded in DSE and CSE. The fund manager
usually takes their advice and then trade accordingly. Now my goal is to do CFA which is now a
must to enter in to this sector and then become an analyst if possible. So I will say that working
as an intern in this organization has helped me immensely to find out my true passion and
hopefully I will work hard to achieve it.
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I think I have given my best during my internship period in IDLC Investments Ltd. I have tried
to do every duty diligently and efficiently. But still since it was my first experience in my work
life I made some mistakes. So if I had to redo my internship again then I think I would have
taken more responsibility myself. In the first few weeks I was tasked with checking documents.
If any documents were missing I was instructed to write it in a sticky note and then attach it with
the forms. But most of the time it was seen that the sticky notes get de attached from the forms.
So whenever my supervisor asked me about the problems of an old form I had to see it again to
tell him. So if I get another chance then I would have maintained an excel sheet where every files
pending documents will be recorded. So whenever my supervisor will ask about the pending
documents of an old file I could tell him within seconds just by searching by the name. When
one of our senior was missing I used to give acknowledgement letters to the relationship
managers. It was another task I would have changed. After downloading the acknowledgements I
had to send the letters to their work place address. But the problem was that there was no record
of the location of relationship managers in any excel sheet. So I would have tried to convince my
supervisor to make one which would have made the process much easier and time efficient.
Otherwise I have to wait for my seniors to tell me their locations and sometimes they even did
not know the locations of some relationship managers.
These are the two things I think I would have changed if I had to redo my internship. Other than
that it was an amazing experience.
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Chapter-5
Financial analysis &
Highlights
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Although, strength and weakness are internal factors, which company can increase and decrease
by implementing different strategies. On the other hand, opportunity and threats comes from
external environment where organization doing their business.
Though there is no role of company itself for facing these threats, or creating opportunity, but
company has the chance to realize the opportunity comes from external factor and can take
defensive actions to minimize the threats.
Strengths
Reputation and brand image: IDLC is well-reputed company and has developed a
brand image that is recognized by the customers. IDLC is an international joint-venture
company and its shareholders have long records of sustainability and reliability in their
respective fields. IDLC is one of the esteemed names in financial market of Bangladesh.
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Since 1985, IDLC has marked its journey through introduction of various innovative
products and thus meeting the needs of large corporate clients.
Product portfolio: IDLC has diverse product portfolio for customers which made them
second to none in Non-Banking Financial Industry.
Quality Customer Portfolio: IDLC has a Credit Risk Management department of
Multinational standard which enables the company to maintain a quality customer
portfolio.
Human Resources: The Company has competent management team. The overall work
force of the company is considered as key resources for the organization. IDLC personnel
are motivated, competent, energetic and creative. The company provides utmost support
in terms of both technical and moral.
Operational efficiency: IDLC provides customized solution to their customers to adjust
their need. The company processes the loan applications quickly and smoothly. The
sanction and disbursement of the loans are hassle-free.
Employee Empowerment: At IDLC decision-making is free flowing and transparent.
Every appraiser is given ample opportunity to exercise his/her creativity in
accommodating a customer. Approvers are open for any discussion and sanction is
largely based upon recommendation of the appraisers. The open and free flow of
communication ensures clarification of any queries in no time–from any level of
hierarchy. Reasonable suggestions are not only welcome but are highly appreciated.
Effective suggestions by the employees are immediately set for action. This flexibility
has helped IDLC a lot in shaping up its operations into a level of efficiency and to be an
excellent performer in case of loan recovery.
Weaknesses
High Cost of fund: IDLC as any other NBFIs have high cost of fund in comparison to
banks. As NBFIs can take deposit for less than one year from any individuals as banks
can do, the deposit base of IDLC is not strong enough to reduce the average cost of fund.
More Focus on Volume: Although IDLC has department called Credit Risk
Management to monitor the asset quality of the company, still the company sometimes
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for the sake of profit and past relationship provide loans to customers who at the end
hamper the portfolio quality of IDLC.
Too Much Diversification: Too much diversification of product and services offering
hamper the focus on the core services of the organization.
Less People in Liability Marketing: IDLC still employs lesser number of workforces
for the aggressive liability marketing in comparison to banks and NBFI like DBH.
Opportunities
Threats
Threat from banks: In recent times banks are also entering into leasing business which
is generally considered as functions of Non-Banking Financial Institutions.
Regularity control of government: The legal framework of Bangladesh is relatively
weak. Lack of effective foreclosure laws and manual land recording system creates
possibility of forgery and disputes. This may hinder the loan recovery from the
defaulters.
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Political Factors
Political factors include areas such as tax policy, employment laws, environmental regulations,
trade restrictions, tariffs and political stability. Political environment is always unstable and it
always affects every aspect of life of this developing country. Due to political turmoil since
October 2006 the financial market behaves inconsistently. During this period whole economy
was stagnate. All development & investment activities were stopped. Security market was also
unstable. Sometimes the index was significantly go up and afterward it was go down drastically.
So people frightened to invest in security market. After 1/11 incident the political scenario
changed dramatically.
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Economic Factors
Economic factors are economic growth, interest rate, exchange rate, inflation. Economic forces
are the factors that affect the consumer buying behavior and spending patterns. Despite political
turmoil in Bangladesh it was a record GDP growth rate of 6.7% in fiscal year 2005-2006.At the
same time export oriented manufacturing industrial sector rose by 10.47% and the foreign
currency reserves achieved a new high of US$ 3.9 billion at the end of 2006. However due to
massive seasonal flood and cyclone SIDR attack, the projected growth for the fiscal year 2006-
2007 was decline. In the recent time present political government takes some initiative to attract
investors. Foreign currency reserve is now more than 4 billion. Bank interest is decline to 9%.
But inflation is still very high. Price of essentials are also increasing day by day; power shortage
is our daily affair.
Social Factors
Social factors often look at the cultural aspects and include health consciousness, population
growth rate, age distribution, career attitudes and emphasis on safety. These are the forces related
to society’s basic values, perceptions, preferences and behavior. People grow up in the particular
society that shapes their basic belief and behavior pattern. These forces affect the survival and
success of every industry of the given society.
Technological Factors
Technological Factors include ecological and environmental aspects and can determine barriers
to entry, minimum efficient production level and influence outsourcing decisions. Technological
Factors look at elements such as R&D activity, automation, technology incentives and the rate of
technological change. It is a common saying that today’s world is a world of technology and
only those will survive who can be up to date with the technology. Technological forces can
create new advancement, innovative products and market opportunities.
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Environmental Factors
There has been increasing global focus on promoting green and environmentally-responsible
businesses and sustainable financing. This has shaped up as an outcome of the increasing threat
on the environment. Increased regulatory focus on sustainable financing. Separate refinancing
fund earmarked by the central bank for green financing offers a good window of opportunity to
strengthen green financing activities. IDLC is committed to sustainable development through the
creation of long-term value. Value for our stakeholders, value for the environment and value for
the community our focused green banking unit has been performing admirably since its launch in
2014.
Legal Factors
Industries are faced with tighter rules and regulations and application of laws are more uniform
and stringent, translating into a more level playing field. Increased focus on the application of
loan loss provisioning and capital adequacy. Focus on strengthening the foundation of financial
institutions through strict implementation of stress testing. IDLC's history of strict legal and
regulatory compliance places it in a good position within the financial services industry. Close
communication is maintained with regulators and trade bodies with separate compliance team.
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Financial Performance
Operational Performance
Net profit after tax 713 669 1,246 1,459 1,780 22.00%
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Financial Ratios
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The debt-equity ratio is another leverage ratio that compares a company's total liabilities to its
total shareholders' equity. This is a measurement of the percentage of the company’s balance
sheet that is financed by suppliers, lenders, creditors and obligors versus what the shareholders
have committed. The debt to equity ratio provides another vantage point on a company's leverage
position, in that it compares total liabilities to shareholders' equity as opposed to total assets in
the debt ratio. Similar to the debt ratio, a lower percentage means that a company is using less
leverage and has a stronger equity position.
8.5
7.5
Times
8.4 8.43
8.03 7.88
7
7.05
6.5
6
2012 2013 2014 2015 2016
Year
Debt to equity ratio of IDLC is balanced trend. The results of IDLC that indicates a balanced
debt-to-equity ratio indicates that a company may able to generate enough cash to satisfy
its debt obligations. Debt to equity ratio was 7.05 times in 2012 and increased to 8.04 times in
2013. But this increasing trend is not big affair of debt to equity capital ratio of IDLC. Again the
debt to equity capital ratio of IDLC has decreased from 8.43 times in 2015 to 7.88 times in 2016.
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1.66
1.8 1.54
1.48
1.6 1.4
1.32
1.4
1.2
PERCEN
1
0.8
0.6
0.4
0.2
0
2012 2013 2014 2015 2016
YEAR
Essentially, financial expenses coverage ratio measures how many times over a company could
pay its current interest payment with its available earnings. In other words, it measures the
margin of safety a company has for paying interest during a given period, which a company
needs in order to survive future any financial hardship that may arise. A company’s ability to
meet its interest obligations is an aspect of a company’s solvency, and is thus a very important
factor in the return for shareholders. From this graph we can see that the financial expenses
coverage ratio of last five years of IDLC is quite impressive & balanced as well. In 2013, the rate
quite low than last 2016 but there is no significant difference among last couple of years. So, in
terms of payment of current interest against the available earnings; IDLC has shown the great
performance over last five years.
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1.5
Percen
2.28 2.33
2.2
1 2.07
1.52
0.5
0
2012 2013 2014 2015 2016
Year
As IDLC was a part of non-banking industry and its most of the assets come from the
investments & capital market which was the reasons for its high net profit as well as good Return
on Assets. The higher ROA of IDLC is 2.33% in 2016. The IDLC was low ROA in the year of
2013 which were 1.52%.
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25 20.95 21.29
20.39
20 16.44
13.31
15
Percen
10
0
2012 2013 2014 2015 2016
Year
The ROE of IDLC shows that the shareholders are receiving balancing rate of returns throughout
the last three years comparing to the last two years. Though in 2013 their ROE was 13.31%,
but after that it gradually increased. The lower return on equity of IDLC was 13.31% in 2013.
It was so because the net income of IDLC has decreased at a higher rate than its equity capital.
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Formula: Earning per share= Net Income/ Number of Common Stock Outstanding
5
TK.
4 7.08
3 5.81
4.95
2
2.84 2.66
1
0
2012 2013 2014 2015 2016
Year
In the year 2012& 2013, the EPS was very low but up to 2016 it increased a lot with 7.08tk EPS
which indicates that earnings against each share were high on last two years. This is very good
sign of IDLC that EPS is gradually increasing .So, IDLC should maintain this EPS because it
creates more attraction about the financial condition to the general public.
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This is the ratio of market value to EPS. Through this ratio, the recent trading price of the firm is
compared with its EPS. The P/E ratio actually represents the expectation of investors about the
firm. Higher P/E means that investors have high expectations about the firm’s future growth and
that’s why they are interested to invest. The P/E ratio has also another meaning, sometimes it
also indicates that how much the investors are willing to pay for per dollar of earnings. So, in this
case it is referred as multiple. The average P/E ratio is 20-25 times. Comparing P/E ratio within
firms of same industry gives the idea that which firm is performing well.
16
14
12
10
Percen
15.95 15.12
8
12.06
6 10.96
8.05
4
0
2012 2013 2014 2015 2016
Year
Over the last five years, the P/E ratio of IDLC have gradually decreased P/E ratio which means
that investors have not good interest on IDLC, but IDLC is a well reputed multinational firm and
has a unique brand image. So, they have to use this reputation to conquer the P/E ratio high. In
2012 the ratio was high and in 2016 it was much lower than 2012. From 2015 to 2016, there was
a down in P/E. So, from 2013 to 2016 it is quite low but still people have positive opinion about
the stocks of IDLC.
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6.68
6.8 6.56
6.6 6.36
6.4
6.2 5.94
Percen
6
5.65
5.8
5.6
5.4
5.2
5
2012 2013 2014 2015 2016
Year
From the graph, we can see that over the last three years the NII is quite impressive. In 2012 &
2013 the ratio are 5.94 & 5.65 but this was not that much bad comparatively last two years. So,
we can say that the net interest income was good against the firm’s liabilities of IDLC.
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The year 2016, Company’s net interest income stood at BDT 140.22 million from a BDT 149.69
million in 2015 on account of no recognition of interest income from negative equity clients.
During 2016, portfolio management services represented the principal revenue stream across
both Cap Invest and DPM, followed by settlement and transaction fees.
Similar to 2013, company’s income stood at a negative Taka 46.92 million on account of non-
recognition of interest income from negative equity clients due to uncertainty in the recovery of
principal and interest.
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In terms of Total Operational revenue, we can see that the revenue of 2012 was very impressive
rather than the year of 2013 & 2014. But after some declining position company have raised their
secured position next following years which is 2015 & 2016. The last two following years have
shown the balanced performance regarding their total operational revenue.
In last three months i found some issues where IDLC Investments Limited improve them and can
find them in a more comfortable place. These improvements actually help both IDLC and clients.
Sometimes a single line of additional information can satisfy clients and IDLC employees can
save their time by not answering 10 extra question.
Tax Certificate does not show how much investment rebate clients will get.
Portfolio statement does not show the netting ability of the client.
Portfolio statement also does not show the total withdrawal for this current period which
is directly related to the tax certificate.
Non-Discretionary Portfolio Account which is maintained by the clients has to write the
order book. If the order book is not available then IDLCIL give him message manually
which is time consuming and costly.
Another problem in Non-Discretionary Portfolio Account is trade block or open. If order
book is not available or if client overbuy from his account then IDLCIL block him from
trade which takes a lot of time. For the client it may cause a lot of financial damage.
Know Your Client is doing in a manual process which means it is maintained only in
hardcopy. If there is any problem like fire, damage by insects before the audit then all this
KYC has to done again.
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Recommendation
If IDLCIL add investment rebate in there software right before the Advance Income Tax
Column it will be really helpful for the clients. When clients come to take their Tax
Certificate they always ask that how much investment rebate they will get.
Netting ability is how much share they can buy with the sold amount of money on that
particular transaction day. This netting ability should show in the portfolio statement. If it
is shown in the portfolio statement then client can make a pre-budget about the trade.
Withdrawal for the current period is a very important element of the Tax Certificate
which should be supported by the portfolio statement.
IDLC Investments should add auto message or email option in their software. Whenever
the order book is not available clients will get the message or email. This software will
also notify the client if the order book is about to finish. Employees have to only input the
data.
In terms of overbuy treatment should be the same. If any client overbuy from his account
then he will be automatically block from trade. When he will sell some securities and will
be in his limit trade will be automatically open.
KYC should be done in Microsoft Excel and then print it out. If they maintain a
Microsoft Excel then it will be very helpful for further use.
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Conclusion
I had a great experience working for IDLC Investments Ltd. The environment and the supportive
nature of the employees in the work place is something I will always remember. There is a
difference between academic learning and experimental learning. Academic learning is the
theories which we have learned in GUB. We have learned a lot of basic theories related to
business administration. Those theories have helped us to develop our knowledge we can use in
the real corporate world. On the other hand, the experimental learning is to learn through
firsthand experience. During my internship period at IDLCIL I have got a lot of experimental
learning experience. I have got first-hand knowledge and I hope I will use it to get better at
things I lack. The corporate world is competitive and hence the experience will serve me well for
my life ahead.
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Bibliography
http://idlc.com/public/documents/reports/Annual%20Report%202016.pdf
http://www.idlc.com/financial-highlights.php
Idlc.com,.(2015). IDLC Finance Limited » Products & Services » Personal Finance » Personal
Loan. Retrieved 19 December 2015, from http://www.idlc.com/personal-loan.php
http://dspace.bracu.ac.bd/xmlui/bitstream/handle/10361/5459/12104?sequence=1&isAllowed=y
http://idlc.com/idlc-investments-ltd.php
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