Professional Documents
Culture Documents
by,
by,
Isma Khan
Assistant Professor, Management
School of Business
Independent University, Bangladesh
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LETTER OF TRANSMITTAL
August, 2017
To
Isma Khan
Assistant Professor, Management
School of Business
Independent University, Bangladesh
Dear Sir,
Here, I am submitting the internship report titled Performance Evaluation of Barisal
Power Company Limited to you, is a great pleasure. The internship program provides
the scope and gives the opportunity of learn different trends and aspects of a reputed
organization. I have already acquired knowledge regarding corporative culture and I have
tried to explain the knowledge by working in Barisal Power Company Limited, Dhaka.
I have also picked up valuable experience in the last three months. Thank you very much
for providing me this type of opportunity and giving me the necessary guidance and
direction needed for preparing the report.
I have tried my level best to make this report holistic and informative enough. I would be
grateful if you consider those from excusable point.
Sincerely yours,
___________________________
Sabina Yesmin Anny
ID: 1210303
School of Business
Independent University, Bangladesh
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ACKNOWLEDGEMENT
At the very beginning, I would like to express my deepest gratitude to almighty ALLAH
for giving me the strength, ability and the energy to finish this task within the scheduled
time. In conducting this report, I have received generous help from many persons, which I
like to put on record here with deep gratitude and great pleasure. First and foremost, I am
highly indebted to my internship supervisor Isma Khan, Assistant Professor, Management,
School of Business Independent University, Bangladesh. She allowed me her precious time
freely right from the very beginning of this internship work till the completion. Her
experienced guidance, affectionate encouragement, scheduled meeting and critical
suggestions provided me necessary help for the report and make the way for the meaningful
ending of this report work in a short duration. I have no hesitation to say that, without her
constant supervision and valuable advices and suggestions from time-to-time, I would be
failed to complete the whole thing. I am also grateful to the employees of Barisal Power
Company Limited, for spending their valuable time and share enough information with me.
Specially, more delightfully I would like to thank Managing Director. Moreover, I would
also like to thanks all of the Barisal Power Company Limited family those who contributed
through their comments and suggestions to prepare this paper in a comprehensive manner.
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Table of Contents
Title Page
Letter of Submission
Table of Contents
Acknowledgement
Chapter One
Introduction of the Report
1.1 Company Profile
1.2 At present Barisal Power Company Ltd
1.3 Mission
1.4 Vision
1.5 Objective
1.6 Projects
1.7 Board of Directors
1.8 Management Committee
1.9 Financial Highlights
Chapter Two
Internship Experience
2.1 Job Responsibilities
2.2 Functions of the Department
2.3 Scope of the Report
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Chapter-01
Introduction on Report
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1.1 Company Overview
Barisal Power Company Ltd. (BPCL) is the pioneer in the private sector power production
field in Bangladesh. Barisal Power is the largest local Independent Power Producer. BPCL
is also the first power generating company to be listed in the local stock exchanges.
Barisal Power Company Limited (BPCL), a company Barisal Group, is the first
Bangladeshi Independent Power Producer (IPP) in Bangladesh and until now the only local
company in private electricity generation and supply business providing power to national
grid. BPCL was incorporated in Bangladesh on March 30, 1997 as a Private Limited
Company. On June 7, 2004 the Company was converted to Public Limited Company under
the Companies Act 1994.
Barisal Group is one of the leading investment and industrial business house in
Bangladesh. The major sectors in which the group is currently investing in include
power generation, port such as container freight station, tank terminal, shipping,
property development, construction, civil & hydro engineering & trading.
The sponsors of Barisal group are interested in infrastructure sectors in Bangladesh
and abroad. This has led to the establishment of the first barge mounted power plant
in Bangladesh namely Khulna Power Co. Ltd, Liquefied Petroleum Gas (LPG) plant
in gas starved area at Mongla Bagerhat, 54 km long gas pipeline of 30 inches
diameter from Ashugonj to Hobiganj, Container Freight Station in Chittagong etc.
The company is also exploring energy markets in Sri Lanka and Vietnam which
have emerging energy sector open to investment.
Barisal Power Company Limited has successfully established in the year 2001 three
power plants each with 11 MW capacities for sale of electricity to Rural
Electrification Board (REB) under build, own and operate basis at Savar, Narsingdi,
and Comilla. The company has already expanded its total generation capacity to 105
MW. Barisal Power Company Limited is going to implement another four power
plants totaling a capacity of 110 MW through its two subsidiary companies Barisal
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Uttaranchol Power Company Limited and Barisal Purbanchol Power Company
Limited.
Barisal Group Chairman Muhammed Aziz Khan said Janata Bank and IIDFC
would provide Barisal with Tk 1,500 crore against a sanction of Tk 2,100 crore
financing. The remaining Tk 600 crore is deducted as advance interest for the next
four years.
As infrastructure like this has long gestation periods, zero-coupon bonds enable
companies to implement these projects with an optimised cash flow.
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The bonds carry a 5 percent discount and 12 percent convertible to the shares of
Barisal Meghnaghat Power Company at net asset value of the company.
Barisal Power Ltd has recently become the lowest in yet two more power tenders, Syedpur
100MW power plant and Shantahar 50MW power plant. Reports say the prime minister
signed the work award orders on January 21.
1.3 Mission .
To expand the company into a power generation capacity to the tune of 1000 MW,
which is 20% of the electricity requirement of Bangladesh. Barisal Power Company
Limiteds motto: "Empowering Bangladesh, we can & we will."
1.4 Vision
To provide quality and uninterrupted electricity to vast majority of rural Bangladesh for
their personal, social economic development.
1.5 Objective
Generate and provide uninterrupted reasonably priced electricity to our
customers
Efficient utilization of capital, machines, material and human resources
Continuous improvement of customer satisfaction and resource management
1.6 Projects
(a) Ashulia Power Plant:
This project was set up to provide electricity for Dhaka Palli Bidyut Samity under
15-years Power Purchase Agreement (PPA) with Rural Electrification Board
(REB). An implementation agreement has also been signed with the government of
Bangladesh (GoB).
After signing expansion agreements with REB and GoB, Barisal Power has increased
this plants production capacity by 33.75 MW with the total output being 45 MW.
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(b) Narsingdi Power Plant:
This project was set up to provide electricity for Narsingdi Palli Bidyut Samity under 15-
years Power Purchase Agreement (PPA) with Rural Electrification Board (REB). An
implementation agreement has also been signed with the government of Bangladesh
(GoB).
After signing expansion agreements with REB and GoB, Barisal power has increased this
plants production capacity by 24.30 MW with the total output being 35 MW.
(c) Comilla Power Plant:
This project was set up to provide electricity for Comilla Palli Bidyut Samity under 15-
years Power Purchase Agreement (PPA) with Rural Electrification Board (REB). An
implementation agreement has also been signed with the government of Bangladesh
(GoB).
After signing expansion agreements with REB and GoB, Barisal power has increased this
plants production capacity by 13.50 MW with the total output being 25 MW.
Barisal Uttaranchol Power Company Limited
(d) Ullapara Power Plant
This project was set up to provide electricity for Sirajganj Palli Bidyut Samity under 15-
years Power Purchase Agreement (PPA) with Rural Electrification Board (REB). An
implementation agreement has also been signed with the government of Bangladesh
(GoB).
The total output being 11 MW.
(e) Maona Power Plant
This project was set up to provide electricity for Maymensingh and Gazipur Palli Bidyut
Samity under 15-years Power Purchase Agreement (PPA) with Rural Electrification Board
(REB). An implementation agreement has also been signed with the government of
Bangladesh (GoB).
The total output being 33 MW.
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(f) Jangalia Power Plant
This project was set up to provide electricity for Comilla Grid Substation under 15-years
Power Purchase Agreement (PPA) with Bangladesh Power Development Board (BPDB).
An implementation agreement has also been signed with the government of Bangladesh
(GoB)
The total output being 33 MW.
(g) Rupganj Power Plant
This project was set up to provide electricity for Narayanganj Palli Bidyut Samity under
15-years Power Purchase Agreement (PPA) with Rural Electrification Board (REB). An
implementation agreement has also been signed with the government of Bangladesh
(GoB).
The total output being 33 MW.
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1.8Management Committees: .
Audit Committee
Executive Committee
Purchase Committee
Technical Committee
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Md. Nazrul Islam Khan, Manager (E&I) Member
Mr. A.K.M. Asadul Alam Siddique, Plant Manager, Comilla Power Plant
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Incorporation of the company March 30, 1997
February 10,
Signing of Project Agreements With REB & GOB
2000
February 8,
Commercial operation at Savar
2001
January 13,
Appointment of Issue Manager
2005
October 03,
Allotment of IPO shares
2005
October 23,
Listing with CSE
2005
November
Listing with DSE
10,2005
November 15,
First Trading in Stock Exchanges
2005
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Signing of Project Agreements for expansion at Savar with REB & GOB March 20, 2006
November 15,
Commercial operation at Comilla expansion project
2006
December 16,
Commercial operation at Madhabdi expansion project
2006
Incorporation of the Barisal Purbanchol Power Company Limited (99% August 15,
subsidiary of Barisal Power Company Limited) 2007
Incorporation of the Barisal Uttaranchol Power Company Limited (99% August 15,
subsidiary of Barisal Power Company Limited) 2007
Increase the Authorized Share Capital of the Company (BPCL) through September 29,
EGM for issuance of Rights Share at the ratio of 5:4 2007
December 04,
Commercial Operation at Savar expansion project
2007
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Capital structure
8%
Authorized Capital in
21%
BDT* (mn)
Paid-up Capital in BDT*
(mn)
Reserve & Surplus in
BDT* (mn)
71%
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Assets, Liabilities and Oweners Equity:
Position of BPCL in Accounting period 2009-10
Financial position
4352.97,
19%
total assets
698.52, 3%
total liability
10121.06, paid up capital
43% net profit
2223.94, shareholder equity
10%
5756, 25%
Turnover:
BPCL has a upword turnover history over the last five year. It indicates this
company is operated with smothness.
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Assests:
BPCL strategically go ahead with a conception of increasing the total assets of it. The following
table and graph show it clearly.
Year 2009 2008 2007 2006 2005
Current Assents 1174 642.55 478.59 253.79 385.63
Total Assents 10121.1 6707.12 4097.69 2782.7 1588.23
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Gross Profit & Net Profit:
Over the last five years BPCL is showing a unword rising of profitability which is
shown in the following table and graph.
Year 2009 2008 2007 2006 2005
Gross
Profit 1510.03 945.86 586.62 310.16 283.89
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Gross Profit
ratio (%) 52.98 54.43 51.07 53.08 54.49
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Net Profit Ratio
40
35
30
25
20 Net Profit Ratio (%)
Taka (mn)
15
10
5
0
2009 2008 2007 2006 2005
Year
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Return on total Assets
12
10
8
Return on total Assets
Taka (mn)
6 (%)
4
2
0
2009 2008 2007 2006 2005
Year
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Earning per share
40
35
30
Taka (mn)
25
20 Earning per share (Taka)
15
10
5
0
2009 2008 2007 2006 2005
Year
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Price Earning Ratio (P/E)
60
50
40
Price Earning Ratio
P/E (tk)
30 (P/E)
20
10
0
2005 2006 2007 2008 2009
Year
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2.12 Financial Position At a glance:
Financial Position of BPCL for fiver years show how it is smoothly operated and
continuoue its business actibities, Relevent financial information are given below:
Operating data (Take in million) 2009 2008 2007 2006 2005
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Operating data (Take in million) 2009 2008 2007 2006 2005
Total no, of free float shares 178,47,677 1,41,41,117 40,80,000 20,00,000 26,50,000
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Chapter-2
Internship Experience
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2.1 Job Responsibilities
BBA academic program is the building up to the theoretical knowledge about
business administration which is the base of practical knowledge. For Example, in
our 7th semester we are experiencing about the credit management system of an
organization. Our course namely Credit Management introduces us how to
manage the credit of an organization. For being practical knowledge, we select
Barisal Power Company Limited. And our key topic of study is Performance
Evaluation of Barisal Power Company Limited. It was assigned to us by our
course teacher, Md. Abdul Mannan. It was a challenge for us to complete a report
on such an important topic. But we have completed this report successfully thanks
to continuous supervision of our academic supervision Md. Abdul Mannan.
This report has been prepared based on Barisal Power Company Ltd. (BPCL) All
information is secondary and collected from Internet, Brochures, annual report
etc. Based on this information ratio has been calculated. For the calculation of ratio
has been calculated to measure the current position of the Barisal Power Company
Ltd. (BPCL). At the same time compare with the market performance.
I have completed my report on Barisal Power Company Ltd. (BPCL) And this report
is about this organization. As one of the main objectives of report is to gather
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practical experience on credit risk management system, we have tried to put some
of the experiences that we have learnt from our report.
Primary Objective:
Primary objective of this report is to measure and analyze the operational and financial
performance of Barisal Power Company Ltd. (BPCL)
To analysis the pros and cons of the conventional ideas about credit operation
of Barisal Power Company Ltd. (BPCL)
To have better orientation on credit management activities specially credit
policy and practices, credit appraisal, credit-processing steps, credit
management of Barisal Power Company Ltd. (BPCL)
To analyze the credit risk management system of the Barisal Power Company
Ltd. (BPCL) under the guideline of the Bangladesh Bank (BB).
To analyze the credit performance of BPCL based on ratio analysis, SWOT
analysis, trend analysis and regression analysis.
Source of information
Information collected to furnish this report is both from primary and secondary in
nature. We collected primary information by direct conversation with the credit
officers. Sources of secondary information were Annual Report of BPCL. We also
studied different books on Finance and Credit and searched through Internet for
more information.
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