BUS 498

Research Proposal on
Performance analysis of Shabab Fabrics Limited with its
competitors. A financial Overview.

Submitted to:
M.Fouzul Kabir Khan
Professor of Economics and Finance
School of Business
Faculty Supervisor

Submitted by:
Stanley Shourov Rozario

081 275 030

North South University

December 5,2012

1. Introduction

The Bachelors of Business Administration (BBA) internship program is a required course for the
students who are graduating from the Business Administration Department of North South
University. It is a 4 credit hour course with duration of 12 weeks. Students who have completed
all other required courses are eligible for conducting internship.
During the internship program, I have been attached to a host organization named Shabab
Fabrics Limited for 12 weeks. During this period I am learning how the host organization works
with the help of the internal supervisor. While learning in this rather new organization, I have
decided to make a report on Performance analysis of Shabab Fabrics Limited with its
competitors. A financial Overview. I am going to prepare the report for the purpose of
completion of my internship program and submit the report to my academic supervisor,
Professor M.Fouzul Kabir Khan (FKK).
The textile industry has played an important role in Bangladeshs 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 countrys 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. Major products exported from Bangladesh include polyester filament fabrics, manmade 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.
Among these products Terry towel is one of the fast growing and challenging sub sector of the
textile industry of Bangladesh. Bath robes, hand towel, kitchen towel etc. are the products from
terry in one word. Demand of these products is increasing very fast globally and also
significantly day by day in the local market. Consumers pay on an average $7 for bath towel and

their households in America. In last decades, the importance of this sector has been increased
enormously with the incremental global demand.
While working at Shabab Fabrics, I had the opportunity to watch and learn the overall financial
activities that are conducted by this organization. My report will be based on my findings and
financial data collected from the Head office of Shabab Fabrics Ltd, in Baridhara DOHS, as I
have been working as intern there. I will prepare the report based on my learning and data
collection throughout my internship period.

2. Objectives
The primary objective of this report is to analyze the performance of Shabab fabrics through
financial analysis. The other objectives include:

To do a comparative analysis of Shabab Fabrics performance with two of its

competitors.

Also to find out a brief overview of the Terry Towel Industry of Bangladesh and
Shabab Fabrics Limiteds position in it.

To have an idea about the background of Shabab Fabrics Limited.

To get an introduction about the organizational structure & how co-ordination among
different set of activities is made.

To set a general idea about operating procedures and functions of Accounts and
Finance Department of Shabab Fabrics Limited.

After completion of this report, it will unveil some results regarding:

How Textile Companys financial activities are running.

How competitive the Industry is now.

3. Significance of the study

Shabab Fabrics Limited (SFL), incorporated in the year 2004, with the aim to meet the
growing demand of high quality terry towel products for international market. Initially the
core competency is on terry towel manufacturing but the product range will steadily be
enlarged to include the whole gamut of household textiles. SFL has the capability to offer a
complete range of terry towel products. The goal of SFL is to become the preferred partner
for sourcing of high quality terry towel products from Bangladesh.
Strong Business ethics, excellences in business, creating a productive work environment,
continuous improvement through sound corporate governance and dynamic employee
engagement have been at the foundation of the organization to become the leading terry
towel factory in Bangladesh.
My report will discuss about how Shabab Fabrics operates its financial activities and its
performance while competing in the market. This report will benefit the customers of Shabab
Fabrics in the following manner:

Clarifying how Shabab Fabrics Limited is conducting its financial activities.

Showing the differences between Shabab Fabrics and its competitors.

Also this report will reveal some important judgment on the organization, which will be
beneficiary for the management of Shabab Fabrics Limited. Such as:

How efficiently the company is conducting production.

What factors can be crucial for running the company and how to comply with
those factors.

Whether there are any scopes for improvement in the investment activities.

The report will be prepared to give people insight about investment activities of Shabab
Fabrics Limited. This will benefit both the clients and employees of the organization by
clarifying any misconceptions. Also the organization itself will be beneficiary by getting
some pathway for further improvement in its efficiency.

4. Expected Findings
Throughout my project report, I will test my hypothesis and reach to a conclusion. My
hypothesis in this will be:
H0 = Shabab Fabrics Limited has a strong position in the Terry Towel sector of the Textile and
apparels industry of Bangladesh.
Ha = Shabab Fabrics Limited still have to gain a strong position in the Terry Towel sector of
the Textile and apparels industry of Bangladesh.

5. Research Methodology

5.1 Research design

As the purpose of this study is to reach a decision regarding whether Shabab Fabrics Limited
has a strong position in the Terry Towel sector of the Textile and apparels industry, therefore
quantitative research was undertaken to fulfill the main purpose of the study.
The study will try to find out how well the company is performing in the industry which is a
based on foreign buyer. The report will consist some descriptive study as well.

5.2 Sampling method

For the study, the researcher will use the employees, workers and also the suppliers of
Shabab Fabrics Limited as the sample for the study. The researcher will use Probability
sampling technique or random sampling to collect the sample for this study. The sample
size will be 120.

5.3. Data collection method

Data will be collected using the personal-contact approach, i.e. Major part of this topic is
dependent on the financial reports of Shabab Fabrics Limited and its competitors, so I have to
be dependent on specific data available from the company. It will not be possible to take
face-to-face interview with all the investment customers of the branch, so interviews will be
taken using telephone conversations as well.
In the study, the researcher will use a questionnaire to collect the data from the sample.
Structured questionnaire will be used in this research.
There will be a structured questionnaire to survey the customers and the questions will not be
open ended questions. All the questions will be answered through using a 1 to 5 scale (5 =
highly agree, 4 = moderately agree, 3 = agree, 2 = moderately disagree, 1 =highly disagree).

5.4 Survey instrument

In the study, the researcher will use a questionnaire to collect the data from the sample.
Structured questionnaire will be used in this research. The questionnaire will have sections
such as investment policies, perception, attitude, Performance, and motivation for involving
with Shabab Fabrics Limited. Here the variables will be divided into two categories:
Independent Variable:
Perception
Attitude
Performance
Motivation
Dependent Variable: Investment Policies

5.4. Data Collection

The study will be conducted on the basis of both the primary and secondary sources of
information.
Primary data:
Primary data will be collected through financial statements of Shabab Fabrics Limited. Also
information will be gathered through discussion with the employees of the bank.

Secondary data:
Secondary source is collection of data from sources that were used for other study. The
secondary data will be collected from:
Annual Report of Shabab Fabrics Limited.
Different text books & materials.
Website of the Shabab Fabrics Limited.

5.6 Data analysis procedure

The report will be analyzed using statistical software SPSS. Then the data will be interpreted
using the techniques such as:
ANOVA
Correlation
Regression
Graphical presentation of linear relationship between dependent and independent
variables etc.

6. Limitations of the Study

Limitation of time was one of the most important factors that shortened the present study.
Due to time limitation many aspects could not discussed in the present study.

Confidentiality of data was another important barrier that was faced during the conduct of
this study. Every organization has their own secrecy that in not revealed to others. While
collecting data on Shabab Fabrics Limited, personnel did not disclose enough information for
the sake of confidentiality of the organization.

Rush hours and business was another reason that acts as an obstacle while gathering data.

Lack of experience in the Textile sector has been another main constraint of this scope of
study.

7. Budget of the Study

7.1 Financial Budget
The source of finance for this study is personal source. The researcher will have to bear the
expenses required for the study. There will be expenses for collecting data. Collecting Annual
reports will be the main cost. Overall it would take at least 5500 Taka.

7.2 Time Budget

Schedule for different steps of this report will follow the determined schedule given by the
course co-coordinator, which is mentioned below:
1. Preparation of project proposal 2 weeks
2. Preparation of questionnaire 1 week
3. Collection of data 4 weeks
4. Analysis of data 2 weeks
5. Preparation of draft report- 2 weeks
6. Preparation of final report 2 weeks.