Financial Statements Analysis of Berger Paints

Bangladesh Ltd
Chapter – 1

1.0 Introduction:
The Company was incorporated on 6 June 1973 as a Private co. limited by shares registered under the
Companies act. Subsequently the co converted to Public co. limited by shares vide extra Ordinary
General Meeting held on 21 June 2005 and is listed both in Dhaka and Chittagong Stock Exchanges of
Bangladesh.

1.1 Origin of The Study:

This report has been prepared as a part of the internship program which is an integral part of the BBA
program under the Dept. of Accounting & Information Systems in the Faculty of Business Studies,
University of Dhaka. The organization attachment was started on 2nd March, 2008 and ended on 1st
June, 2008. This report on “Financial Statements Analysis of Berger Paints Bangladesh ltd.” was
assigned by academic supervisor Md. Al-Amin, Assistant Professor of Dept of Accounting &
Information Systems, Faculty of Business Studies, University of Dhaka.

1.2 Purpose of The Study:

The purpose of the study is to make an analysis of Financial Statements of Berger Paints in terms of the
Paints Industry. This study attempted to understand the financial conditions of Berger paints on
different segments such as liquidity, profitability & solvency. The purpose is also to make
recommendations for improving the financial stability and soundness of different services provided to
the shareholders of BPBL. It is also the purpose of the researcher to help the management by providing
an idea to take appropriate decisions about the quality of the investing & financing in future.

1.3 Scope of the study

The scope of this study was strictly confined to the annual report & personal contact with the
employees of Berger Paints Bangladesh ltd. To collect the information I worked in the finance section
& cost & budget section of BPBL. All other data related to the financial analysis was collected from
web sites of BPBL & other related co.

1.4 Methodology of the study:

For smooth and accurate study every one have to follow some rules & regulation. The study impute
were collected from two sources:

Primary sources
Practical desk work
Face to face conversation with the officer
Direct observations
Face to face conversation with the client

Secondary sources
Annual report of BPBL
Files & Folders
Daily diary (containing my activities of practical orientation in BPBL) maintained by me,
Various publications on BPBL,
Website

1.5 RESEARCH OBJECTIVES

1.5.1 Broad objective:

To assess and find out the financial conditions of the firm to analysis how much the co. is capable of
doing business properly in future.

1.5.2 Specific objective:

Whether the customer are loyal to buy Berger Color Bank product.
Whether Color Bank can build the relationship with the target customer and the dealer through their
products.
Whether Color Bank can build the relationship with the target customer and the specifies through their
products.
Whether Color Bank can build the relationship with the target customer and the painters through their
products.
Find out the source of information.
Find out the customer satisfaction level in consideration to the product quality.
Find out the customer satisfaction level in consideration to the service of Berger Color Bank.
Whether Berger can create awareness in the consumer mind.

1.6 Contact methods:

To collect data for the report I use two types of contact method. I use personal or face to face contact
method.

1.7 Limitations of the study:

There were some restrictions to have access to the information confidential by concern authority.
Time and cost constraints also other limitations regarding this analysis.
Lack of experience of the researcher.
Analysis was based mainly on financial statements.