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Ulc Leasing Company Of Bangladesh Essay

4589 words - 19 pages

Project on
Financial Statement Analysis of United Leasing Company Limited

Project on
Financial Statement Analysis of United Leasing Company Limited

Prepared for
Dr. H. M. Mosarof Hossain
Professor
School of Business (MBA Program)
North South University

Prepared By
Syeda Zabeen Ahmed, ID # 0910683060
Khadiza Akter, ID # 0930401060
Sadia Choudhury, ID # 1010366060
Toufiqur Rahman, ID # 1030291060
Md. Nazmul Ahsan, ID# 1010236060

April 08, 2011

Dr. H. M. Mosarof Hossain
Professor
School of Business (MBA Program)
North South University.

Submission of the BUS635 Group Project
Dear Sir,
We are pleased to submit the group project paper: “Financial Statement ...view middle of the document...

Without his continuous support and guidance, needless to say, this paper would have less to offer.
We are also grateful to Mr. Arif Hasan, Assistant Director of Bangladesh Bank, who backed us with the timely and accurate information to equip the paper.

TABLE OF CONTENTS
Title | Page |
1. Introduction | 09 |
(a) Origin of the Report | 09 |
(b) Background of the Study | 09 |
(c) Objectives | 09 |
(d) Methodology | 10 |
(e) Scope of the Study | 10 |
(f) Limitations | 11 |
2. Leasing in Bangladesh | 12-13 |
3. United Leasing Company | 14 |
(a) Overview | 14 |
(b) Policies Used by ULCL | 14-16 |
(c) Mobilization of Resources | 16 |
(d) Products | 16-17 |
(e) Investment Portfolio at a Glance | 18 |
Analysis of Financial Statement | 20 |
(1) Balance Sheet Summary | 20 |
(2) Summary of Profit-Loss Account | 21 |
(3) Ratio Analysis | 22 |
(a) Liquidity Ratio | 22 |
(b) Asset Management Ratio | 23 |
(c) Debt Management Ratio | 24 |
(d) Profitability Ratio | 25 |
(e) Other Ratios | 26 |
Findings | 27 |
Conclusion | 28 |
List of Tables
Table 1: Investment Areas and Proportion of United Leasing Company | 18 |
Table 2: Balance Sheet Items During the Years 2006-2009 | 20 |
Table 3: Profit and Loss Account During the Years 2006-2009 | 21 |
Table 4: Liquidity Ratio of the years 2006-2009 | 22 |
Table 5: Asset Management Ratio of the Years 2006-2009 | 23 |
Table 6: Debt Management Ratio of the Years 2006-2009 | 24 |
Table 7: Profitability Ratio of the Years 2006-2009 | 25 |
Table 8: Other Ratios | 26 |

List of Figures
Figure 1: Amount Financed by ULCL in Different Business and Social sectors | 19 |
Figure 2: Liquidity Ratio | 22 |
Figure 3: Asset Management Ratio | 23 |
Figure 4: Debt Management Ratio | 24 |
Figure 5: Profitability Ratio (1) | 25 |
Figure 6: Profitability Ratio (2) | 25 |

Others
Executive Summary | 08 |
Bibliography | 29 |

Executive Summary
The United Leasing company Limited earned net interest income of BDT. 420 million and profit before tax of BDT. 212 million compared to BDT.395 million and BDT. 203 million in 2008 registering a growth of 6.32% and 4.43% respectively. Cost of deposits and borrowing decreased by 5.56% from BDT. 726 million to BDT. 686 million, however operating expenses increased by 25.13% from BDT. 115 million to BDT. 145 million mainly due to consecutive effect of expansion in small enterprise financing, factoring of accounts receivable and individual investment services initiated at the end of 2008. Additional promotional expenses for expanding corporate image after completion of 20 years of service and imposition of VAT on rental expenses also contributed to the increase in operating...

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