Chapter one

Introduction
1.1. Introduction
The textile sector is the most important one in Bangladesh. It is the largest manufacturing
sector in the country. The textile sector’s contributions to industrial GDP and employment are
the highest in Bangladesh. All the textile companies have excellent production, sales and
financial performance due to favorable local and foreign sales and satisfactory earning profit.
The bright future of the garment sector has created a good demand for our yarn and fabrics
and taps this opportunity; we need congenial business environment and backward linkage
industries for the survival of our textile sector. (Mostafa, 2006).

Bangladesh, being a labour abundant country, started the process of industrialization by

concentrating on labour-intensive products such as textiles and clothing. The industrial sector
plays a pivotal role for accelerated economic growth as well as rapid employment generation.
(Selim, 1999).

The main focus of Textile sector during the Fourth Plan period was oriented towards
generation of employment, priority to private sector investment, promotion of export-oriented
industries, rationalization of tariffs, providing monetary and fiscal incentives, product
diversification and horizontal market expansion. In 1997-2002, no provision was kept for
creation of any new capacity in textiles under the public sector and private sector was given
the exclusive performance to invest in the field of spinning, weaving, knitting, dyeing and
finishing and garments making. Private investment at various stages of the textile industries
will be encouraged with particular emphasis on development of quality through technological
improvement. This will be done not with a view to maximizing the backward linkage of
ready-made garments manufacturing but also with the view to enabling the exports of fabric
and yarn. (Mostafa, 2006)

1.2. Objectives of the Study

The objective of this study is to help the textile companies to develop their current financial
position. Our study will be also beneficial for the investors to know about this growing
sector.

We had two fundamental objectives to complete our study. These were:

1.2.1. Primary Objectives

 To find out the present financial condition of the textile industry.

  To show the trend of financial condition of listed textile companies for the last five
years.

1.2.2. Secondary Objectives

 To find out the problems and challenges of the textile sector.

 To know the contribution of textile sector in the economy of Bangladesh.
 To predict the future position of the textile industry.

1.3 Research Methodology

Research methodology addresses four topics:

1.3.1. Research design:

Our research design was exploratory; its primary objective is the provision of insights into
and comprehension of the problem situation confronting the researcher.

We have used both quantitative and qualitative methodology in our seminar paper. As our
paper was based on annual reports provided by the listed companies, we used only secondary
data as our source. By analyzing these annual reports, we have provided some qualitative
insights about the present financial situation of our textile industry, so that exploratory
research design was suitable for our project.

1.3.2. Sample Design:

 Target Population: Our target population was the Listed Textile companies of the
Textile Industry of Bangladesh.
 Sample Method: In selecting sample we used the convenience sampling method and
took the companies as our sample which data were available to us.
 Sample Frame: Our sample frame is 29 textile companies which are listed in Dhaka
Stock Exchange.
 Sample Size: To collect data, we took 10 companies as our sample units, based on
time and convenience. These ten Companies are mentioned below with their trading
codes as provided by Dhaka Stock Exchange:

 Alltex Industries Ltd. (ALLTEX)

 Anlimayarn Dyeing Ltd. (ANLIMAYARN)
  Apex Spinning & Knitting Mills Limited. (APEXSPINN)
 The Dacca Dyeing & Manufacturing Co. Ltd. (DACCADYE)
 Generation Next Fashions Limited. (GENNEXT)
 Maksons Spinning Mills Limited. (MAKSONSPIN)
 Metro Spinning. (METROSPIN)
 Rahim Textile. (RAHIMTEXT)
 Square Textile. (SQUARETEXT)
 Tallu Spinning. (TALLUSPIN)

1.3.3. Data Collection and Fieldwork:

The seminar paper relies specially on the Annual Reports of listed textile companies and
some documents. The other secondary data we have collected was from:

 Literatures
 Newspapers
 Journals
 Websites

In collecting data, the main source was the Annual Reports of textile companies available on
their official websites. In order to make the Report more dependable and error free, secondary
data were collected from different newspaper, internet, and related articles published in
journals to present some specific information about the financial condition of the textile
companies. As we have used no primary data, we did not conduct any fieldwork.

1.3.4. Analysis:

For analyzing the data, we have taken 10 variables to indicate the financial condition of each
Textile companies. We converted all our gathered financial information, obtained from the
annual reports, into crore for maintaining equivalence and then showed the trend of financial
conditions of 5 financial years: 2011-2012 to 2016-2017.

1.4. Limitations of the Study

To make any paper successful and dependable it is required to have relevant data. There was
no lack of sincerity on our part to collect useful data for the study. We have some limitations
in this regard.
The limitations of our study are:

 We can’t collect primary data because of privacy of confidential data of share holders.
 Only the use of secondary data can’t make the paper fully significant.
 Some secondary might not be so relevant to our study. So they were unable serve our
purpose fully.
 All the secondary data may not be accurate. Accuracy depends on the source of the
collecting data.
 Secondary data is not always up to date.
 More detailed information regarding the study area has not been properly collected
because of limitations of the study time.
 For any work budget is a main factor and in this regard we obviously lack some fund.
 Chapter two

Literature review
2.1 Textile & Textile Industry

A textile is a flexible woven material consisting of a network of natural or artificial fibers

often referred to as thread or yarn. Yarn is produced by spinning raw fibers of wool, flax,
cotton, or other material to produce long strands. Textiles are formed by weaving, knitting,
crocheting, knotting, or pressing fibres together. (Textile, Wikipedia) The Textile Industry is
primarily concerned with the production of yarn, and cloth and the subsequent design or
manufacture of clothing and their distribution. The raw material may be natural or synthetic
using products of the chemical industry.

2.3 Listed Companies

In our research, we have tried to find out the financial condition of the textile companies that
are listed in the Dhaka Stock Exchange.

Listed Companies, also called quoted company, are firms whose shares are listed (quoted) on
a stock exchange for public trading. (Business dictionary)

According to Investopedia, There are many advantages that accrue to companies that attain a
public listing of their shares. Some of the key considerations and benefits are:

The financial benefit in the form of raising capital

 An increased public awareness of the company because listed companies often

generate publicity by making their products known to a new group of potential
customers.
 Increase in market share for the company.
 Allow its shareholder a ready means of realizing their investments.
 Enhancing the status and financial standing of the company and Creating a market for
the company's shares.

2.3 Variables to indicate Financial Condition

We have taken the following important variables to indicate financial condition of textile
companies in our research.

Sales Turnover: Sales turnover is the company's total revenue, the invoice, cash payments
and other revenues. It represents the value of goods and services provided to customers
during a specified time period - usually one year. Sales turnover is usually expressed in
monetary terms but can also be in total units of stock or products sold. Turnover is an
important key to recognize the overall return on investment. (Shim and Siegel, 2008)

Gross Profit: Traditionally, Gross Profit is calculated by subtracting the cost of sales from
sales revenue for all products and services sold (Wilkinghoff, 2009). In accounting, gross
profit is the cash difference between an item or portion cost and its sales price (Brown, 2006).
Gross profit is important to a company for evaluating the business and sales, because it tells
whether the company has made money or lost money on its sales. This is one of the most
important aspects of evaluating a company. (ehow)

Total Asset: It is the sum of current and long-term assets owned by a person, company, or
other entity. The following is a quotation from the IFRS Framework: "An asset is a resource
controlled by the enterprise as a result of past events and from which future economic
benefits are expected to flow to the enterprise." Total assets are listed on a company's balance
sheet based on their level of liquidity, which is based on the speed in which they can be
exchanged for cash. (Wisegeek)

Shareholder’s Equity: Shareholders’ equity is the interest of shareholders, or owners, in the

assets of a company and at any time is the cumulative net result of past transaction affecting
this segment of the balance sheet. (Steven, 2005) It is the firm's total assets minus its total
liabilities.

Earnings per Share: EPS is the portion of a company's profit allocated to each outstanding
share of common stock. Earnings per share serve as an indicator of a company's profitability,
which is calculated as – (Net Income – Dividends on preferred Stock) / Average outstanding
share. (Investopedia)
 Chapter three

Synopsis of textile industry in

Bangladesh
3.1 Overview of Textile Companies in Bangladesh

Bangladesh’s textile industry is comprised of a mix of small to large scale privately and
publicly owned companies. Major products exported from Bangladesh include polyester
filament fabrics, man-made filament mixed fabrics, PV fabrics, viscose filament fabrics and
man-made spun yarns. Major garments exported include knitted and woven shirts and
blouses, trousers, skirts, shorts, jackets, sweaters and sportswear, among other fashion
apparel. Bangladesh’s textile industry can be divided into three main categories: public
sector; handloom sector; and the organized private sector. The private sector is the fastest
growing sector in the country. The handloom industry provides employment for a large
segment of the population of Bangladesh and supplies a large portion of the fabric required
by the local market. Combined, the textile and apparel sectors consist of 3,600 firms. There is
a concentration of manufacturing activity in and around the capital city of Dhaka and a
growing garment manufacturing presence in the country’s export processing zones.
(Wikipedia, 2013)

About 20 percent of existing mills in Bangladesh are large-scale mills, roughly 30 percent are
medium-scale mills, and the remaining 50 percent are small-scale mills and the number of
spinning mills in the country is increasing day-by-day. While industry analysts say
Bangladesh’s garment and textile manufacturers will have to face steep competition from
countries such as India, Pakistan, China and Thailand as a result of new policies, the textile
companies see no impact on their business. But still the future of the textile industry here is
very bright.

Until the liberation of Bangladesh, the textile sector was primarily an import-substitution
industry. It began exporting ready-made garments (RMG) including woven, knitted, and
sweater garments in 1978, which grew spectacularly during the next two and a half decades-
from US$3.5 million in 1981 to US$10.7 billion in FY 2007. The industry employs about 3
million workers of whom 90% are women. Two non-market factors have played a crucial
role in ensuring the garment sector’s continual success namely (a) quotas under Multi- Fiber
Arrangement1 (MFA) in the North American market and (b) preferential market access to
European markets. (Bangladesh Textile Industry, Wikipedia)
When Bangladesh gained its independence from Pakistan in 1971, the new government
nationalized the textile industry. All of the country’s textile factories were then organized
under the Bangladesh Textile Mills Corp. (BTMC). The role of BTMC within Bangladesh’s
textile industry has substantially been altered since the denationalization of a large number of
public sector textile mills over the last decade and a half. Prior to denationalization, BTMC
enjoyed a near-monopoly within the yarn and fabric market in Bangladesh. At present, there
are 21 textile companies under BTMC. They operate 24 spinning facilities with an installed
capacity of 490,892 spindles and 1,036 looms. Out of that total, 13 of the companies —
which operate 16 plants — utilize 320,228 spindles under the service charge system
producing different counts of yarn in the range of 32/1 to 80/1. Another five companies have
128,088 spindles in operation. Among the 21 mills, Valika Woolen Mills Ltd., Nasirabad,
Chittagong, is the only specialized BTMC Company, producing knitting wool, woolen
suiting, men’s and women’s woolen shawls, and woolen blankets. (Akter 2012)

The textile education in Bangladesh is getting stronger as the industry is gaining more
importance in the socio-economic structure of the country lead by the alone public university,
Bangladesh University of Textiles. It was upgraded from a textile college in order to create
more scope of researching in the field of textiles a year ago. Now there are 1500 students
studying at the undergraduate level and 60 students at the graduate level.

3.2 Readymade Garments in Bangladesh made Garments in Bangladesh

While agriculture for domestic consumption is Bangladesh’s largest employment sector, the
money gained from exporting textiles is the single greatest source of economic growth in
Bangladesh. Exports of textiles, clothing, and ready-made garments accounted for 77% of
Bangladesh’s total merchandise exports in 2002. Only 5% of textile factories are owned by
foreign investors, with most of the production being controlled by families or Bangladeshi
companies. (Bangladesh Textile Industry, Wikipedia).

Immediately after the founding of Bangladesh, tea and jute were the most export-oriented
sectors. But with the constant threat of flooding, declining jute fiber prices and a significant
decrease in world demand, the contribution of the jute sector to the country’s economy has
deteriorated. (Bangladesh Textile Industry, Wikipedia).
In the 1980s, the RMG market started its journey. The hurdles of the Multi Fiber
Arrangement (MFA) quotas in 1985 and the Harkin Bill in 1994 were great challenges for the
industry, as were the phasing out of MFA quotas in 2004. Although there was concern that
the MFA phase-out would shut down the industry, the Bangladesh textile sector actually grew
tremendously after 2004 and reached an export turnover of US$10.7 billion in FY 2007.
Bangladesh's export trade is dominated by the RMG industry. The sector currently employs
2.5 million people—about 40% of total manufacturing (85% of these employees are
women)—and accounts for 76% of the country's export earnings and 10% of its GDP.
(Wikipedia, 2013).

Currently Bangladesh is now second largest readymade garments manufacturer after China,
by the next five years Bangladesh will become largest readymade garments manufacturer.
Bangladesh was the sixth largest exporter of apparel in the world after China, the EU, Hong
Kong, Turkey and India in 2006. In 2006 Bangladesh's share in the world apparel exports was
2.8%. (Wikipedia, 2013) The export’s of Ready Made garments for the year 2011-2012
according to EPB was:

Bangladesh has many potential advantages to become like China by attracting most of the left
out orders from China. Though current exchange rate situation is same for countries like
India, Pakistan but for other advantages Bangladesh’s competitiveness will increase in terms
of garment export for the exchange rate of BDT and USD. But substantial effort and policy
support is needed to industry to ensure sustainability and higher foreign currency retention.
(Amin, 2012).

The US was the largest single market with US$3.23 billion in exports, a 30% share in 2007.
Today, the US remains the largest market for Bangladesh's woven garments taking US$2.42
billion, a 47% share of Bangladesh's total woven exports. The European Union remains the
largest regional destination - Bangladesh exported US$5.36 billion in apparel; 50% of their
total apparel exports. The EU took a 61% share of Bangladeshi knitwear with US$3.36
billion exports. (Bangladesh Textile Industry, Wikipedia).

Bangladesh’s garment exports – mainly to the US and Europe – make up nearly 80% of the
country’s export income. The country has more than 5,000 factories employing more than 4
million workers and among them approximately 90% are women, many working in
hazardous social conditions. It has been a major source of employment for rural migrant
women in a country that has increasingly limited rural livelihood options, and where women
migrants have been largely excluded from formal work in the cities. (Bangladesh Textile
Industry, Wikipedia).

Readymade garments are the largest export industry and determine the dynamics of total
export earnings for Bangladesh RMG is still growing at a satisfactory rate. There is no strong
indication of any negative impacts of the global economic crisis on RMG as of today, but the
future continues to be unpredictable.

Through the history of textile and RMG of Bangladesh, it has been seen that several times the
back ward industry was not given due importance. The contribution of RMG can be
publicized very easily which allure always to concentrate there. But the backward industry in
this textile supply chain is very important for a sustainable future of the overall industry.
Only a strong backward industry can assure the retention of foreign currency, stable supply
chain system, more control on the raw materials supplier, less lead time. At this cross road of
textile and apparel business, strong backward linkage industry is a must. Investment in the
backward industry was very slow in the last few years that should be increased without any
delay. Existing industry is in problem due to GSP plus policy. Government should come
forward to save these industries by imposing bindings on the garment makers to buy a
significant part (possibly 50%) of their fabric from the local factories to enjoy duty waiver for
other imports. (Amin, 2012)

3.3 Contribution of Textile Industry in the Economy of Bangladesh

The economy of Bangladesh is a rapidly developing market-based economy. Its per capita
income in 2010 was est. US$1,700 (adjusted by purchasing power parity). Textile sector is
one of the most important sectors for the economy of Bangladesh. While agriculture for
domestic consumption is Bangladesh’s largest employment sector, the money gained from
exporting textiles is the single greatest source of economic growth in Bangladesh. Exports of
textiles, clothing, and ready-made garments accounted for 77% of Bangladesh’s total
merchandise exports in 2002.Only 5% of textile factories are owned by foreign investors,
with most of the production being controlled by local investors. (Wikipedia, 2013)

Textile sector’s contribution to the GDP is 5%. This sector alone accounts for 75% of the
national export earnings ($ 4860.12 million) of Bangladesh. It provides employment for 1.6
million people. (Akter, 2012)
The textile industry has played an important role in Bangladesh’s economy for a long time.
Currently, the textile industry in Bangladesh accounts for 45 percent of all industrial
employment and contributes 5 percent to the total national income. The industry employs
nearly 4 million people, mostly women. A huge 78 percent of the country’s export earnings
come from textiles and apparel, according to the latest figures available. Bangladesh exports
its apparel products worth nearly $5 billion per year to the United States, European Union
(EU), Canada and other countries of the world. It is the sixth largest apparel supplier to the
United States and EU countries. (Malhotra, 2006).

Bangladesh textile industry, which is dominated by the RMG sector, is facing problems due
to some changes in global business environment. Such huge dependence on external suppliers
is obviously nullifying the miraculous achievements of our RMG & knitwear industry to a
great extent. At the same time, it places our RMG & knitwear units at a significant
disadvantage against competition by increasing their lead-time to complete export orders. At
present, it takes 120-150 days from receiving of orders to shipment. Fashion change may
quickly render an item obsolete and that is why buyers look for the shortest of lead-times
before placing orders.

Bangladesh textile industry, which is dominated by the RMG sector, is facing problems due
to some changes in global business environment. Such huge dependence on external suppliers
is obviously nullifying the miraculous achievements of our RMG & knitwear industry to a
great extent. At the same time, it places our RMG & knitwear units at a significant
disadvantage against competition by increasing their lead-time to complete export orders. At
present, it takes 120-150 days from receiving of orders to shipment. Fashion change may
quickly render an item obsolete and that is why buyers look for the shortest of lead-times
before placing orders levels. US cotton based textile and product imports from Bangladesh
told a similar story, with cotton non apparel up 20.4 percent but apparel down 3.52 percent.

Bangladeshi exporters have to face tough competition from other countries, which have
competitive advantage both in terms of productivity and quality. Many of these countries
already built their backward linkage industries to increase local input. On the other land
Bangladesh RMG sector has to import a significant portion of required inputs to produce
goods. Backward linkage industry is not strong in this country. Countries like India, China
and even Pakistan will take away export orders from Bangladesh because of their strength
both in backward and forward linkage industry. So it is assumed that these countries will go
for value addition and export more and more to EU and US. As a result Bangladeshi
manufacturers will face tough competition. (Haque, 2012).

3.4 Problems and Challenges of Textile Industry

A large portion of Bangladesh’s economy is now dependent on the Textile industry. But
because of irresponsibility and lack of concern is destroying this sector rapidly. We are also
suffering with short technology and research. After privatization, the quality of the fabrics
produced improved significantly, leading to a great increase in the demand for Bangladeshi
textiles in both the international market, as well as the export oriented garment industry of
Bangladesh. This launched the industry into a period of rapid growth that is continuing at
present. However, the textile industry has seen the application of many new technologies
over the centuries. Now we will discuss the main reasons of crisis in textile industry step by
step in detail.

 Raw material Prices: Prices of cotton and other raw material used in textile industry
fluctuate rapidly in Bangladesh. The rapid increase in the price raw material affects
the cost of production badly.
 Lack of Research and Development in Cotton Sector: The lack of R&D in the
cotton sector of Bangladesh has resulted in low quality of cotton in comparison to rest
of Asia. Because of the subsequent low profitability in cotton crops, farmers are
shifting to other cash crops.
 Lack of Modernize Equipment: The inability to timely modernize the equipment
and machinery has led to the decline of Bangladesh textile competitiveness. Due to
outdated technology the cost of production is higher in Bangladesh as compared to
other countries like India, Pakistan and china.
 Increasing Cost of Production: The cost of production rises due to many reasons
like increasing interest rate, inflation and decreasing value of Bangladeshi Taka,
which create problem for a textile industry to compete in international market.
 Electricity Crisis: As a consequence of load shedding the textile production capacity
of various sub-sectors has been reduced by up to 30 %. Due to load shedding some
mill owner uses alternative source of energy like generator which increase their cost
of production further. Due to such dramatic situation the capability of competitiveness
of this industry in international market effected badly.
  Tight Monetary Policy: The continuity of tight monetary policy causes an intensive
increase in cost of production. Due to high interest rate financing cost increases which
cause a severe effect on production.
 Lack of new investment: The unpredictable internal condition of Bangladesh cause a
rapid decrease in foreign investment that affected all industries but especially textile
industry.
 United States cuts imports of textile from Bangladesh: United States cancels huge
of textile orders of Bangladesh. US also impose high duties on the import of textile of
Bangladesh which affects the export in a bad manner.
 The Effect of Global Recession on Textile Industry: Because of recession all
around the world, many retail companies, from which Bangladesh’s textile companies
was used to take orders, are closing their business.

Despite all the challenges that exist in Bangladesh, companies can still highly benefit from its
sourcing offering. Together effort from three main stock holders like government, suppliers
and buyers can work to overcome these various hurdles to success.

3.5 Brief Profile of Sampled Listed Textile Companies in Bangladesh

The textile companies that are analyzed in our study are introduced briefly below, as referred
on the official websites of the listed companies.

3.5.1 Alltex Industries Ltd.

Alltex Industries was incorporated on January 24, 1985 as a private limited company. The
company was converted into a public limited company on October 25, 1994. The company is
a 100% export oriented industry of dying, finishing and printing grey fabrics towards making
of Home Textile products for export with a current production capacity of 90000000 SQ.
MTR.

3.5.2 Anlima Yarn & Dyeing Ltd

Anlima Yarn Dyeing Limited provides yarn dyeing services to knitting, weaving, sweater,
and garments factories; and offers polyester sewing thread to garments industries in
Bangladesh. It offers sewing thread under the brand name ‘AN Thread’. The company was
incorporated in 1995 and is based in Naya Paltan, Bangladesh.
3.5.3 Apex Spinning & Knitting Mills Ltd

Apex Spinning & Knitting Mills Limited engages in knitting, dyeing, finishing,
manufacturing, and exporting garments. Its product line includes pique polo-shirts, jersey
polo-shirts, bubble knit polo-shirts, golf shirts, sweat shirts, hooded sweat shirts, polo shirts,
sweat pants, basic tee-shirts, track suits, tank tops, big tee-shirts, heavy tee-shirts, jogging
suits, and turtle neck tee-shirts; jackets and underwear; and children, men, and babies wear.

3.5.4 Dacca Dyeing & Manufacturing Co. Ltd.

Dacca Dyeing and Manufacturing Co. Ltd. is one of the oldest and most reputed Home
Textile Company of Bangladesh. It is a Public Ltd. Company incorporated on December 31,
1963. The company owns and operates one Composite Textile Plant at Tongi, Gazipur
producing high quality of all sorts of home textile products for marketing in Europe and
North America. The company is by far the largest supplier of linens to the major institution of
Bangladesh.

3.5.5 Generation Next Fashions Limited

Is a Generation Next Fashions Ltd. Public Limited Company, listed with Dhaka Stock
Exchange and Chittagong Stock Exchange having incorporated in Bangladesh under
Companies Act, 1994 since 2004. It serves as a knit fabric and apparel manufacturing setup
in Bangladesh producing 500,000 KGs of knit fabric per month for various retailers across
Europe and North America.

3.5.6. Maksons Spinning Mills Ltd

Maksons Spinning Mills Limited engages in the production and sale of cotton yarn in
Bangladesh. It primarily offers cotton combed and carded yarn. The company was
incorporated in 2003 and is headquartered in Dhaka, Bangladesh.

3.5.7 Metro Spinning Ltd

Metro Spinning Limited engages in the production and sale of cotton yarn in Bangladesh. It
also exports its products. The company was incorporated in 1993 and is headquartered in
Dhaka, Bangladesh.
3.5.8 Rahim Textiles Mills Ltd

Rahim Textile Mills Ltd. engages in dyeing, printing, and finishing textile products in
Bangladesh. Its products include woven solid dyed and printed fabrics, such as cotton and
stretch poplin, cotton and stretch twill, canvas and sheeting, voile, TC, and polyester.

3.5.9 Square Textile

Square Group of Companies steps into the textile sector in 1994 as a Public Limited
Company. It came into operation in 1997 with three units – Square Yarns, Square Knit
Fabrics and Square Fashions. Now it has Tk. 3,000 million Authorized Capital and 1908
Employees as end of 2011.

3.5.10 Tallu Spinning

Tallu Spinning Mills Limited is one of the oldest cotton yarn manufacturing company of
Bangladesh, incorporated as a Public Limited Company on July 20, 1985 under the
Companies Act, 1913. The project was financed with the financial assistance of Bangladesh
Development Bank Limited.
 Chapter four

Data analysis and findings

4.1 Data Analysis and Interpretation

As our sample, we have taken 10 textile companies that are listed in the Dhaka Stock
Exchange. We analyzed and interpreted these companies’ financial Performance of five years
on essential variables, based on the data provided on the annual reports we collected from the
official websites of each company.

4.1.1 Sales Turnover

Sales Turnover (in crore) of the Textile Companies

Year 2011-12 2012-13 2013-14 2014-15 2015-16
Alltex 303 262 127 241 217
Anlima 16.87 15.07 22.16 29.40 29.40
Apex 171.87 164.95 158.61 223.10 252.44
Dacca 60.56 109.22 112.06 82.43 86.59
Generation Next 60.11 101.45 128.95 139.36 143.64
Maksons 107.71 107.71 93.43 152.26 174.45
Metro 68.26 68.26 63.40 108.81 76.63
Rahim 24.82 24.82 37.88 40.92 47.02
Square 254.15 254.15 388.22 444.54 524.77
Tallu 106.45 106.45 81.62 88.82 97.50

Sales Turnover
600
500
400
2011-12
300
2012-13
200
2013-14
100
2014-15
0
2015-16

Figure 4.1.1: Sales Turnover (in crore) of all the Textile Companies

Interpretation: In the above graph, we can see that, the overall condition of sales turnover is
good. Most of the company’s sales are increasing, such as: Anlima, Apex, Generation Next,
Rahim, and Square, while Alltex and Tallu have a downward trend of sales. Rest of the
company’s sales is fluctuating.
4.1.2. Gross Profit

Gross Profit (in Crore) of the Textile Companies

Year 2011-12 2012-13 2013-14 2014-15 2015-16
Alltex 46 32 18 35 33
Anlima 1.68 1.34 4.53 4.93 5.08
Apex 19.15 15.53 15.19 16.58 20.03
Dacca 15.18 22.21 23.97 25.58 27.87
Generation Next 6.36 15.77 20.71 26.85 31.11
Maksons 28.69 29.90 34.80 57.12 30.47
Metro 15.41 16.85 22.88 19.78 12.05
Rahim 4.57 5.62 6.37 6.91 6.82
Square 58.28 46.32 53.34 88.68 107.08
Tallu -2.32 -1.61 -1.84 0.75 1.81

Gross Profit
Figure 4.1.2: Gross Profit (in Crore) of the Textile Companies
120

100

80
2011-12
60
2012-13
40 2013-14
20 2014-15
2015-16
0

-20

Figure 4.1.2: Gross Profit (in Crore) of the Textile Companies

Interpretation: Here we can interpret, Square has highest sales and it also makes high rate of

gross profit. Although, Tallu has good sales turnover, it has negative profit for the year 2008-

2010. On the other hand, companies with increasing sales, have also making gross profit in a

upward trend.
4.1.3. Total Asset

Total Assets (in Crore) of the Textile Companies

Year 2011-12 2012-13 2013-14 2014-15 2015-16
Alltex 245 246 244 268 260
Anlima 36.10 41.45 54.35 56.50 54.89
Apex 99.07 91.48 83.33 107.03 104.85
Dacca 170.84 166.56 173.81 189.55 332.40
Generation Next 66.34 131.36 148.48 171.80 226.72
Maksons 164.91 218.22 264.78 352.14 595.82
Metro 192.36 187.87 172.85 152.98 92.70
Rahim 41.45 65.33 69.41 68.63 64.50
Square 0.37 0.58 0.55 0.66 0.72
Tallu 108.15 109.48 125.38 141.98 160.42

Total Asset
600

500

400
2011-12
300
2012-13
200 2013-14
100 2014-15

0 2015-16

Figure 4.1.3: Total Assets (in Crore) of the Textile Companies

Interpretation: All the companies have a strong position in terms of their total asset. The

amount of gross profit is decreasing for Metro. Here the exception is that, with a high sales

and gross profit, the Square Company has a deficiency in total assets.
4.1.4. Shareholder’s Equity

Shareholder's Equity (in Crore) of the Textile Companies

Year 2011-12 2012-13 2013-14 2014-15 2015-16
Alltex 63 57 48 49 45
Anlima 20.05 19.24 19.03 19.33 19.67
Apex 40.03 39.67 39.62 40.46 41.25
Dacca 67.70 52.11 65.78 58.68 72.17
Generation Next 9.22 10.79 12.75 16.97 21.60
Maksons 19.95 15.28 11.60 17.41 16.74
Metro 83.23 102.12 79.49 95.86 107.05
Rahim 14.55 20.43 23.04 23.02 33.35
Square 0.14 0.27 0.23 0.29 0.31
Tallu 59.78 45.50 52.21 40.92 44.59

Shareholder’s Equity
120

100

80
2011-12
60
2012-13
40 2013-14
20 2014-15

0 2015-16

Figure 4.1.4: Shareholder's Equity (in Crore) of the Textile Companies

Interpretation: Share holder’s equity is the interest of shareholders, or owners, in the assets

of a company. In the graph, we can see that Maksons company has a good trend in their share

holder’s equity while Square has the least position. All the other companies have a

fluctuating condition in their share holder’s equity.

4.1.5. Earnings Per Share

Earnings per Share of the Textile Companies

Year 2011-12 2012-13 2013-14 2014-15 2015-16
Alltex -0.11 0.10 -1.78 -1.22 0.13
Anlima 0.01 0.05 0.88 1.17 1.19
Apex 56.93 15.62 16.45 16.11 2.45
Dacca 0.97 1.24 1.05 1.34 1.61
Generation Next 5.04 10.82 14.72 2.68 2.09
Maksons 4.06 2.45 2.65 5.07 0.57
Metro 2.59 3.77 3.84 2.10 -1.11
Rahim 57.29 50.43 11.50 42.05 0.51
Square 3.62 2.43 2.68 5.80 6.37
Tallu 23.41 21.80 19.96 20.55 22.36

Earnings per Share

60

50

40
2011-12
30
2012-13
20 2013-14
10 2014-15
2015-16
0

-10

Figure 4.1.5: Earnings per Share of the Textile Companies

Interpretation: Although Square has a miserable condition in total asset and shareholder’s

equity, it represents a better position in EPS. Apex and Rahim had a consistent flow of EPS,

but suddenly it fell in a great amount in the year 2015-16.

4.2 Findings
 Chapter five

Recommendations and conclusion

5.1 Recommendations

5.2 Conclusion
5.1 Recommendations

Bangladesh economy at present is more globally integrated than at any time in the past. Our
Garments Industries can improve their position in the world map by reducing the overall
problems. Such as management labor conflict, proper management policy, efficiency of the
manager, maintainable time schedule for the product, proper strategic plan etc.

Government also have some responsibility to improve the situation by providing- proper
policy to protect the garments industries, solve the license problem, quickly loading facility
in the port, providing proper environment for the work, keep the industry free from all kind of
political problem and the biasness. Credit must be provided when the industry fall in need.

In Bangladesh, the main problems in the textile industries are fire incidents, building
collapse, labor unrest, mismanagement etc. For these problems we can suggest the following
recommendation:

 Building should be constructed with fire resisting materials

 Adequate exits and proper escape routes should be designed
 Protection against fire and smoke should be ensured
 Electrical wiring must be properly designed, installed and maintained
 Regular fire drills should be held
5.2 Conclusion: