Executive Summery

Short Term financing is that from of financing which embraces borrowing or

lending of funds for a short period of time. It refers to the finance obtained
on short term basis, usually one year or less in duration. Short term finance
is secured for financing the current assets, for example, inventories. Short
term finance is also known as working capital which is the excess of current
assets over current liabilities.
The size of business has an important bearing on the use of short term
finance. There is variation in the use of short term finance between the large
and small sized business establishments. In practically all types of business,
there is lesser use of short term credit among larger concerns. The small
concerns make more use of short term financing on account of lower average
credit standing and impermanent nature of business. Among various sources
of short term financing, the following are commonly used:
1. Trade Creditors
2. Customers Advances
3. Commercial Banks
4. Finance Companies
5. Commercial Paper House
6. Personal Loan Companies
7. Governmental Institutions
8. Factors or Brokers
9. Co-operative credit society
10. Loan Mortgage Banks
11. Money Lender
12. Accruals
13. Bank Overdraft
14. Bank Guarantees
15. Financial Commitments to LC
Berger Paints began its painting in Bangladesh since independence. And this
has been a footstep to bring more than 230 years of global paint industry
experience into Bangladesh.
In 1970, Berger Paints Bangladesh Limited (BPBL) erstwhile Jenson &
Nicholson had set up its paint factory in Chittagong at an estimated

investment of TK.4 million. The shareholders were Jenson & Nicholson (J& N),
Duncan Macneil & Co Ltd and Dada Group.
Duncan Macneil subsequently sold their shares to majority shareholder J& N
group. The Dada groups share ultimately vested with the Government of
Peoples Republic of Bangladesh after the independence
The name of the company was changed from J& N (Bangladesh) Limited to
Berger Paints Bangladesh Limited on 1st January 1980. In August 2000, J& N
investment (Asia) Ltd purchased Government shareholding. Now, Berger
Paints Bangladesh Limited is 100% owned by J& N Investment (Asia) Limited,
UK. Over the decades, Berger has evolved to becoming the leading paint
solution provider in this country and has diversified into every sphere of the
industry from Decorative Paints to Industrial Coatings, from Marine
Coatings to Powder Coating and what not.
The vision of the company is to remain as the benchmark in the Paint
industry being an innovative and technology driven Company consistently
delivering world-class products ensuring best consumer satisfaction through
continuous value added services provided by highly professional and
committed team.
From analyzing the annual reports of BPBL, it is found that they basically use
five types of short term financing. These are:

Trade Credit
Bank Overdraft
Bank Guarantees
Short-term Loan
Financial Commitments to LC

In conclusion, it can be said that BPBL relies heavily on Trade Credit & Bank
Overdraft although they have listed other means of STF. In the last five years
they did not change their method of STF. They used five means: Trade Credit,
Bank Overdraft, Short-Term Loans, and Bank Guarantees & Financial
Commitments to LC. Another mentionable thing here is not using STL
completely over the last five years. Bank Guarantees & Financial
Commitments to LC were used for Contingent Liabilities. Overall, they have a
sound Short-term financing to meet their needs.