Chapter 1

Introduction
1.1 Background of the study
A proper education system requires a perfect combination of delivering adequate theoretical knowledge
along with necessary applications of that acquired knowledge in the real life scenario. Northern
University plays a vital role to ensure that students studying Bachelor of Business Administration (BBA)
gets the most out of it by being capable of knowing and applying their education in the real workforce.
This is the reason why an Internship Program is arranged for the soon to be graduated students so that
they can get a sample of the real-life work settings and can have an opportunity to apply their knowledge
throughout the program. Besides, an internship program helps a student to take control and responsibility
in his life along with assisting to learn skills like time-management, interpersonal, organization and
communicational skills etc.
I myself, being a BBA student from Northern University also had this opportunity to participate in its
Internship Program for the Fall’17 semester. I have completed my internship from a renowned group of
companies namely Bogra Bhandar group. I was mainly engaged in the Jute mill section of their business
portfolio which is named Bogra Bhander Jute and Twine Industries. Jute was once called the golden
fiber of Bangladesh. After the independence of Bangladesh, government tried to revive the industry after
a long period of exploitation and consequent destruction. I am very proud to work in such a glorious
sector of business in our country.

As a student of finance department in Northern University Bangladesh, I gained thorough knowledge

about financial aspects of a company but I lacked real life insight of a business firm. This internship
helped me to develop an overall primary idea of how a business is operated specially how jute mills are
run, what products a jute mill has there to offer, how the entire process of manufacturing yarn runs etc. As
a finance student, my concentration was in the financial sector of the business.

1.2 Origin of the Study

This report is the output of three and half months long internship program that I have gone through at
Bogra Bhander Jute and Twine Industries. It also fulfils the partial requirement of an internship program
that a business graduate must undergo in order to quality for degree in Northern University. Being an
intern the main challenge was to translate the theoretical concepts into real life experience. To accomplish
the internship, I was placed at Bogra Bhander Jute and Twine Industries under the guidance of Mrs. Kaniz
Fatema, my academic supervisor.

1.3 Objectives of the study:

1.3.1. Broad objective

The main objective of this study is to analyze the financial performance of Bogra Bhander Jute and Twine
Industries.

1.3.2. Specific objective

To achieve main objective some other supportive objectives were identified as given below
 To analyze the financial statements of Bogra Bhander Jute and Twine Industries.
 To get idea about Jute manufacturing operation
 To be familiar with the jute related products and their markets.
 To find the problems faced by the company and find way to get solutions of the problems.
1.4 Methodology
Methods followed to perform a job or conducting activities to complete a task is called methodology. In
conducting this study the following methodology was adopted in collecting data and information,
preparation of reports etc. This is a Descriptive Research, which briefly reveals the overall analysis of
financial performance of Bogra Bhander Jute and Twine Industries.

Most of the data used to make this report are secondary in nature. I have also used primary data to
complete my report.

1.4.1 Sources of Data

Primary Sources:
• Discussion with officials of BBJTI
• Face to face conversation with the financial managers and officers.
• Observation while working in the office.

Secondary Sources:
• Annual report of Bogra Bhander group.
• The website of Bogra Bhander group.

1.6 Limitation of the study

It is obvious that every study has some limitations. The study I have made is of great importance and
required me huge load of work. While conducting I had to face a number of limitations. Those
limiting factors that hampered my smooth workings in the company and in preparing this report are
as follows:
 The organization maintains strict confidentiality about their financial and other information. So
there was always a chance of lack of appropriate information.
 Any type of such presentation requires a long time. Duration of this study was too short to have a
sound understanding of the overall business procedures.
 All the financial data that are used in my study are collected from secondary sources, mainly
from the website. The website is not updated frequently. So the data from the site is not the latest.
So my analysis does not reflect the up to date information and condition of the company.
 All the employee of the branch is doing their task as the sales and cash related, that's why
collecting financial information from them was also difficult.
 Chapter 2
Jute Industry of Bangladesh
2.1 History of Jute
Bangladesh being one of the leading jute producers of the world enjoyed the monopoly in marketing of
jute and jute goods in the world market till mid-seventies. Bangladesh produces 5.0-5.5 million bales of
raw jute annually out of which 2-2.5 m bales are exported and the rest are consumed by the local jute
mills. About 70-75% of the total jute goods produced in the country is exported. Bangladesh still meets
50-60% of the world's demand of jute goods and 90% of raw jute. More than 150 composite and twine
jute mills in public and private sector of Bangladesh are producing more than 6.5 lac. A huge demand for
various diversified jute products viz. carry/shopping bags, shoes, composite materials, geo-textiles, home
textiles, handicrafts, gift items, pulp and paper etc. is continuously increasing in both local and foreign
markets. The future prospect of this eco-friendly natural fiber-jute is expected to increase day by day with
effective support from the national governments of the producing countries through adoption of
appropriate policies like banning of synthetic packaging materials and enactment of regulations favorable
towards its cultivation, diversification and marketing.

Bangladesh holds the 2nd position as a Jute producer in the world with the average production of Jute
1.08 m ton/year. More than 85% of world production of Jute is cultivated in the Ganges Delta & having
the major portion of it; Bangladesh became the largest producer of Raw Jute or Jute Fibre in the world.
For centuries, Bangladeshi Jute had and still has demand in the international market for higher quality
fibers. This fact makes Bangladesh the major exporter (80%+ market share) of Jute Fiber in the world;
while India has nominal dominance over export of Raw Jute Fiber.

· Total average export earnings from jute & jute goods is USD 611 million (60 lakh bales)/year

· Average export value of raw jute is USD 140 million

· Capacity: No of factories: 187

Size of the global Jute import Market:

· The size of the global jute yarn import market is estimated at 4,50,000 tonnes, with Bangladeshi
spinners accounting for around 80% of the supply.

Jute in Organic Fashion:

· Fabrics made of jute fibres are carbon-dioxide neutral and naturally decomposable. These properties are
also why jute can be used in high performance technical textiles.

Jute as raw material for Paper:

· A unique combination of long bast and short core fibres along with lower lignine content than some
other feedstock of pulp/paper makes jute suitable for a range of paper and cardboard products.

· The stem of jute/kenaf consists of two fibrous components. The bark (fibrous material) with about 2.5
mm fibre length is suitable for quality paper making and is similar to soft wood fibres (constitutes 25-
35% by weight of stem).
· Paper and packaging materials to be produced from Dhanicha will be less expensive and can be recycled
after a life- cycle.

· The new technology will save valuable bamboo, wood and jute resources of the country which are now
being used widely for producing paper pulp destroying the country’s forests and environment.

Jute in Home Textiles:

- The core of jute (stick/woody portion) with shorter fibre of 0.9 mm length has strength properties similar
to hard wood (constitutes 60-65% by weight of stem).

- Diversified jute products are becoming more and more valuable to the consumer today. Among these are
espadrilles, floor coverings, home textiles, high performance technical textiles, Geotextiles, composites,
and more.

- Jute has many advantages as a home textile, either replacing cotton or blending with it. It is a strong,
durable, color and light-fast fibre.

- Its UV protection, sound and heat insulation, low thermal conduction and anti-static properties make it a
wise choice in home décor.

Since independence, Bangladesh's largest customer for jute products has been the United States; the bulk
of sales has been divided fairly evenly between burlap and carpet backing. But, consistent with the global
pattern, the United States market has eroded fairly steadily over the years. Sales to the United States
reached a low of USD 81.8 million in 1986 but increased again to USD million in 1987, when both prices
and volume rose. The market for jute sacking was assisted by the fact that some recipient countries of
American food aid specified burlap for their United States imports because they had a secondary market
for the bags.