All Praise to Allah, the Almighty, and the Merciful. Without His Blessing and Endorsement

Acknowledgement

All praise to Allah, the almighty, and the merciful. Without his blessing and endorsement this report would not have been accomplished.

The successful completion of this assignment might never be possible in time without the help some person whose inspiration and suggestion made it happen. First of all I want to thank my faculty advisor MR. Md. Lutfor Rahman for helping me completing my report on “Assessment of Portfolio Management”.

I would also like to thank my colleagues, friends who helped me by providing informative instructions. Without them this project would have been very difficult. I also, thanks to my parents, and some friends who keep on this process with me, always offer support. Executive Summary:

Portfolio management is the art and science of managing an investor’s portfolio of investments in order to maximise the returns, minimise the risk and achieve the objectives as stated in the investor’s investment strategy.

Portfolio management starts with defining the strategy of investment for the investor, it then goes on to decide the budget and resources of the investor within the purview of which the investment needs to be done. The next step is to identify the required returns (the expectations) and the risk appetite of the investor, that is, the amount of risk the investor is willing to take while investing.

The portfolio manager then goes on to allocate the assets to the investor, invest in an appropriate mix of assets such as equity, fixed income securities, derivatives, real estate, bullion, mutual funds, hedge funds. It then has to identify and allocate respective investments within the asset class like which sector in equities and which stock in the sector.

The portfolio manager then seeks to balance the portfolio so as to achieve the objective of risk and return. The portfolio manager then assesses the performance of the portfolio and monitors if the portfolio meets the specified objectives. The next step is to review the performance and make appropriate changes so that the objectives, if met, are maintained and if not net, are met in the future. ‘XYZ’ Securities Limited Portfolio Statement: Motijheel, Dhaka Date: 07.08.2012 Index: 4092.16

Quantity

SL Sector Company Name Total Saleable Market Rate Total Cost Holding(%) 1 Fuel & Power Jamuna oil 350000 420000 237.70 83195000 8.32 2 Titas Gas 450000 450000 71.10 31995000 3.19 3 Meghna Petrolium 300000 300000 207.20 62160000 6.21 4 Power Grid 500000 500000 54.90 27450000 2.75 5 Telecom GP 250000 250000 189.2 47300000 4.73 6 BSCCL 600000 600000 82.10 49260000 4.93 7 Insurance BGIC 1300000 1500000 29.40 38220000 3.82 8 City General 1500000 1500000 33.10 49650000 4.96 9 Phenix Ins 1000000 1000000 61.80 61800000 6.18 10 Mutual Fund ICB 1st NRB 150000 150000 27.90 4185000 0.42 11 ICB 2nd NRB 300000 300000 15.90 4770000 0.48 12 Grameen1 100000 100000 48.10 4810000 0.48 13 GrameenS2 300000 300000 15.20 4560000 0.46 14 Bank One Bank 200000 200000 18.80 3760000 0.38 15 DBBL 50000 50000 104.80 5240000 0.52 16 City Bank 200000 200000 25.00 5000000 0.50 17 SIBL 200000 200000 19.90 3980000 0.40 18 Standard Bank 250000 250000 17.70 4425000 0.44 19 NBFI IDLC 50000 50000 100.20 5010000 0.50 20 DHB 60000 60000 77.80 4668000 0.47 21 GSP Finance 130000 130000 35.30 4589000 0.46 22 Cement MI Cement 600000 600000 105.90 63540000 6.35 23 Confidence Cement 600000 600000 102.40 61440000 6.14 24 Heidelberg 200000 200000 248.40 49680000 4.97 25 Lafarge 1000000 1000000 32.60 32600000 3.26 26 Pharmaceutical Square Pharma 50000 50000 256.80 12840000 1.28 27 Beximco Pharma 100000 100000 50.30 5030000 0.50 28 Keya Cosmetics 800000 800000 37.60 30080000 3.00 29 Travel & Leisure Unique Hotel 500000 500000 77.00 38500000 3.85 30 Food & Allied RD Food 500000 500000 24.00 12000000 1.20 31 Fuwang Food 400000 400000 Pay 30.80Out History (%)12320000 1.23 Instrument32 EngineeringNAV GoldensonPaid up Authorized1000000P/E 1000000EPS 2009 49.902010 201149900000ROE ROA4.99Credit Rating 33 (per share) S. capital(crAlam Cold Capital(cr)1000000 1000000 51.10 51100000 5.11 34 Aftab Automobiles) 450000 450000 116.50 40775000 4.77 Jamuna35 Multinational oil 55.25 BATBC70.2 300 200008.85 2000026.26 40 644.8030, 20B 30, 30B12896000 0.2931.29 N/A Titas36 Gas 29.98 Bata942.1 Shoe 2000 200008.27 200008.60 27 484.3025, 10B 309686000 0.3250.97 N/A MP37 45.45 Berger63.1 Paints 400 2000011.78 2000017.59 40, 5B490.2045, 5B 35, 30B9804000 0.2940.98 N/A PowerTotal= Grid 47.21 419 1000 18.89 2.91 27 10, 15B 15998218000 0.047 N/A Power Sector:

Business condition:

At present, 48.5% of the total population of Bangladesh is enjoying the electric facilities. As of April 2010, the total numbers of transmission and distribution lines are recorded to 8,359 km and 266,460 km respectively. However, 53,281 villages have been electrified so far. In Bangladesh per capita generation is 220 KW hr which is comparatively lower than other developed countries in the world.

Recent Status:

Installed capacity (Feb 2011) 6,658 MW Derated generation capacity 5,480 MW Generation 3,900-4,300 MW Maximum generation (Feb 2011) 4,699 MW Peak demand 5,800 MW Access to electricity 47% Per capita generation 220 KW hr Figures other than Installed Capacity and Maximum Generation are of June 2010. Source: Bangladesh Economic Review 2011(Bangla version), www.mof.gov.bd

Public and private sector produces 63% and 37% of electricity respectively. Public sector produces electricity through Bangladesh Power Development Board (BPDB), Ashuganj Power Station Company LTD (APSCL) and Electricity Generation Company of Bangladesh (EGCB). On the other hand, private sector produces power through small independent power producers and rental that government buys at a constant price. BPDB individually produces 46% of the total production.

Electricity Production, 2010, by Sector

Public Private Sector BPDB1 APSCL2 EGCB3 SIPP4 SIPP (BPDB) SIPP (REB)5 Rental Derated electricity capacity 2,522 606 310 1,271 99 226 446 (MW) Total 3,438 2,042

1Bangladesh Power Development Board 2Ashuganj Power Station Company Limited 3Electricity Generation Company of Bangladesh 4Smal Independent Power Producer 5Rural Electrification Board Source: Power and Energy Sector Development Roadmap (June 2010), Ministry of Finance

Economic Condition: Bangladesh is progressing through a phase of development where automation is the key to its economy and business. As the country continues to industrialize the importance of power generation and electricity supply becomes a key government priority. Market Trend (Last one year): Telecom Sector:

Pay Out History(%) Paid up Authorized Instrument NAV per share Capital(cr) Capital(cr) P/E EPS 2009 2010 2011 ROE ROA Credit Rating GP 29.46 1350.3 400 13.21 14.32 60 120 205 0.593 AAA BSCCL 17.55 118.5 1000 17.06 4.81 N/A N/A N/A 0.147 N/A

Economic Condition:

The almost exponential growth in the Telecoms sector n Bangladesh in the last 5-10 years has had the same transformative impact on Bangladesh's economy as the growth of Ready Made Garments and Remittances. As well as being the largest contributor to Foreign Direct Investment and tax revenues, the catalytic effect of rapid mobile penetration on increasing the quality of life of tens of millions of people has been significant.

We would emphasize at the outset that the bulk of this report focuses on the Mobile Phone Operators given that they form the dominant part of the Telecoms sector by revenues, employment and coverage. However we do provide a brief summary of Wimax, lnternet Service Providers (ISPs), Fixed Line Companies and other Telecoms players and we intend to provide fuller analysis in a future report.

As of September 2010, the BTRC has reported that there are 65.14 million mobile subscribers in Bangladesh and with competition in the sector intensifying; one would expect the rate of growth to remain strong going forward.

However, Bangladesh still lags a majority of other countries in the region in terms of mobile penetration; most notably Pakistan The potential to cross 100 m subscribers by 2013 is not unrealistic, particularly if the relatively high level of taxation on SIMs is reduced by the Government.

Business Condition: Ministry of Posts & Telecommunications modernized telecom and postal services to the people of Bangladesh in a transparent and people-friendly manner and thereby facilitate the creation of a digital Bangladesh. The Mission of the Ministry is to determine the general policy of the Government and to encourage the development of the Telecommunication sector in Bangladesh.

The Mission includes the following:  To take appropriate actions to facilitate exchange of information through telecommunication within and outside Bangladesh ;  To identify the areas where telecommunication technology can be applied for the purpose of developing the local culture and social bondage; and to encourage the use of such technology in those areas;  To identify the fields of public and private sector investment for the purpose of developing an effective and modern telecommunication infrastructure and to encourage such investment on the basis of co-operation between the public and private sectors;  To undertake, on its own, research and development initiatives in telecommunication in Bangladesh and also to undertake such initiatives jointly with regional and other organizations interested in this regard;  To undertake educational and training programmers for human resources development of enterprises which establish telecommunication system, provide telecommunication services and manufacture related products;  To assist, all concerned for the purpose of enhancing the local telecommunication manufacturing capability and developing innovative telecommunication services;  To facilitate the measures to control or abolish discriminatory conduct in providing telecommunication services or in extension of such services;  To arrange a forum where the Ministry, Government, Commission, operators, consumers and other interested persons may meet to discuss matters of common interest;  To co-ordinate participation of Bangladesh in the activities of the International Telecommunication Union and other international organizations regarding policies, standards and procedure to be followed in telecommunication and training on such matters;  To provide a cheap but dependable and quality postal service at the doorsteps of the people;  To provide standard physical, financial and electronic services using post office facilities;  To provide efficient postal service within the country and abroad;  To formulate policies regarding the development and administration of postal and telecom sector in the country;  To look after and supervise the activities of Teletalk Bangladesh Ltd, Telephone Shilpa Shangtha and Bangladesh Cable Shilpa Limited and Bangladesh Submarine Cable Company Limited Government of Bangladesh planned various upgradition projects in Telecom sector, the sixth five year plan for implementation, the details are as below to be implemented between 2011-2015:

Agency wise estimated cost. No. of Indicative Total Cost (Lakh Taka at Implementing Agency Under the (Program /Project) 2009-2010 prices) Ministry 1. Bangladesh Telecommunications 12 11129,36 Company Limited (BTCL) 2. Bangladesh Post Office (BPO) 25 2229,97 3. Teletalk Bangladesh Limited 4 2555,00 4. Bangladesh Submarine Cable 9 591,15 Company Limited (BSCCL) 5. Bangladesh Cable Shilpa Limited 3 110,00 (BCSL) 6. Telephone Shilpa Sangstha Limited 12 243,00 (TSS) 7. BangladeshTelecommunication 5 525,00 Regulatory Commission (BTRC) 8. Ministry of Posts & 2 17,00 Telecommunications (Own) (Strengthening the Institutional Support of Ministry of Posts & Telecommunications) Total 58 17400,48 Market Trend (Last one year):

Insurance Sector:

Pay Out History (%) NAV Paid up Authorized Instrument (per share) Capital(cr) Capital P/E EPS 2009 2010 2011 ROE ROA Credit Rating BGIC 20.12 54 100 13.87 2.12 10B 12B 10, 5B 0.081 A+ City General 15.32 42.3 200 10.87 2.88 10B 12B 10B 0.065 A- Phenix Ins 24.92 32.3 100 10.47 5.9 25B 25B 15, 5B 0.125 A+

Economic Condition: The government of Bangladesh nationalized insurance industry in 1972 by the Bangladesh Insurance (Nationalization) Order 1972. By virtue of this order, save and except postal life insurance and foreign life insurance companies, all 49 insurance companies and organizations transacting insurance business in the country were placed in the public sector under five corporations. These corporations were: the Jatiya Bima Corporation, Tista Bima Corporation, Karnafuli Bima Corporation, Rupsa Jiban Bima Corporation, and Surma Jiban Bima Corporation. The Jatiya Bima Corporation was an apex corporation only to supervise and control the activities of the other insurance corporations, which were responsible for underwriting. Tista and Karnafuli Bima Corporations were for general insurance and Rupsa and Surma for life insurance. The specialist life companies or the life portion of a composite company joined the Rupsa and Surma corporations while specialist general insurance companies or the general portion of a composite company joined the Tista and Karnafuli corporations.

Business Condition: The postal life insurance business and the life insurance business by foreign companies were still allowed to continue as before. In reality, however, only the American Life Insurance company. Continued to operate in the life sector for both new business and servicing, while three other foreign life insurance continued to operate only for servicing their old policies issued during Pakistan days. Postal life maintained its business as before.

After 1973, general insurance business became the sole responsibility of the Sadharan Bima Corporation. Life insurance business was carried out by the Jiban Bima Corporation, the American Life insurance Company, and the Postal Life Insurance Department until 1994, when a change was made in the structural arrangement to keep pace with the new economic trend of liberalisation.

The Insurance Corporations Act 1973 was amended in 1984 to allow insurance companies in the private sector to operate side by side with Sadharan Bima Corporation and Jiban Bima Corporation. The Insurance Corporations Amendment Act 1984 allowed floating of insurance companies, both life and general, in the private sector subject to certain restrictions regarding business operations and reinsurance. Under the new act, all general insurance businesses emanating from the public sector were reserved for the state owned Sadharan Bima Corporation, which could also underwrite insurance business emanating from the private sector. The Act of 1984 made it a requirement for the private sector insurance companies to obtain 100% reinsurance protection from the Sadharan Bima Corporation. This virtually turned Sadharan Bima Corporation into a reinsurance organisation, in addition to its usual activities as direct insurer. Sadharan Bima Corporation itself had the right to reinsure its surplus elsewhere outside the country but only after exhausting the retention capacity of the domestic market. Such restrictions aimed at preventing outflow of foreign exchange in the shape of reinsurance premium and developing a reinsurance market within Bangladesh.

The restriction regarding business placement affected the interests of the private insurance companies in many ways. The restrictions were considered not congenial to the development of private sector business in insurance. Two strong arguments were put forward to articulate feelings: (a) since the public sector accounted for about 80% of the total premium volume of the country, there was little premium left for the insurance companies in the private sector to survive. In this context, Sadharan Bima Corporation should not have been allowed to compete with the private sector insurance companies for the meagre premium (20%) emanating from the private sector; (b) Being a competitor in the insurance market, Sadharan Bima Corporation was hardly acceptable as an agency to protect the interests of the private sector insurance companies and should not have retained the exclusive right to reinsure policies of these companies. The arrangement was in fact, against the principle of laissez faire.

Market Trend (last one year): Mutual Fund Sector:

Pay Out History (%) NAV Paid up Authorized Instrument (per share) Capital(cr) Capital(cr) P/E EPS 2009 2010 2011 ROE ROA Credit Rating ICB 1st NRB 44.17 10 0 8.65 3.23 24 35 37 0.109 N/A ICB 2nd NRB 19.78 100 0 7.23 2.2 12.5 22 22.5 0.144 N/A Grameen1MF 52.34 25.5 0 34.86 1.38 71 60 25, 50B 0.119 N/A GrameenS2M F 19.05 137.5 0 21.71 0.70 11.5 20 10, 10B 0.114 N/A

Economic Condition:

A mutual fund is a professionally managed firm of collective investments that collects money from many investors and puts it in stocks, bonds, short-term money market instruments, and/or other securities (Investopedia). As it is professionally managed this segment is very crucial to bring rationality in the market. In Bangladesh, the mutual funds were first introduced by the state- owned investment agency Investment Corporation of Bangladesh (ICB) in 1980.

Extensive research has evaluated mutual fund performance in different financial markets which led to mixed results (Soderlind et al., 2000; Korkeamaki and Smythe, 2004); however, very limited work has been done to evaluate Bangladeshi mutual funds. This paper focused on measuring risk adjusted performance of 13 closed end mutual funds on the basis of monthly Net Asset Value. For this purpose methods suggested by Jensen, Treynor and Sharpe are employed. Performance of the selected funds found superior in compare to benchmark index. Furthermore diversification, market timing and selectivity skill of fund managers are tested. We found little amount of diversification, no statistically significant timing skill but good level of selectivity.

Business Condition:

Bangladesh has a very small market for mutual funds. As reported in an earlier article in a local English daily on Wednesday, October 28, 2009, currently 17 mutual funds trade at an average of 2.75 times their net asset value (NAV) and 75 times their earnings. The article also said that a sample of 21 mutual funds in the Asia Pacific region is traded at 0.91 times or below their NAV on average. Till now, 19 mutual funds together account for less than 3% of our total market capitalization with combined assets of less than Tk. 2,000 crores. However, this small market is not happy at all at this moment.

A very serious but interesting debate has been looming for the last couple of weeks regarding the mutual funds in Bangladesh. The SEC implemented revised mutual fund regulations on July 22 that prohibited the mutual funds from issuing new shares either in the form of right or bonus shares to increase their capital bases. After this amendment faced writ petition from investors, The High Court on November 09, 2009 allowed mutual funds to raise their size by issuing bonus and rights, without curbing the securities regulator’s absolute power to determine which funds would be eligible to expand capital base although this verdict was suspended hours after announcement giving the SEC adequate time to appeal. On the following day, the benchmark Dhaka Stock Exchange (DSE) General Index (DGEN) gained 17.41 points or 0.51 per cent to close at 3428.89, which was a new high. The broader DSE All Shares Price Index (DSI) moved up 14.38 points or 0.50 per cent to close at 2871.75 while DSE-20 blue chips index rose 10.24 points or 0.44 per cent to close at 2313.01. Although the market move was led by the mutual fund on that day, following days were worse in the market, and the issue in the high court is still pending creating uncertainty among thousands of innocent general investors.

Market Trend (last one year): Banking sector:

Pay Out History(%) NAV Paid up Authorized Instrument (per share) Capital(cr) Capital(cr) P/E EPS 2009 2010 2011 ROE ROA Credit Rating DBBL 44.7 200 400 8.49 12.34 33.33B 30 40 0.241 AA2 One Bank 19.35 414.5 415.5 6.67 2.82 32B 55B 30B 0.159 AA3 City Bank 35.44 631.9 1000 9.92 2.52 25B 30B 25B 0.092 AA3 SIBL 14.64 639.4 1000 11.57 1.72 11B 14B 10.5 0.110 A+ Standard Bank 16.92 487.4 1500 6.65 2.66 20B 28B 20B 0.157 A1

Economic Condition:

The banking industry in Bangladesh has flourished over the years, making double-digit profit percentages, sustaining growth and surviving cut-throat competition while providing attractive returns to shareholders. However, the greed for more without befitting platform and fundamentals brings its own challenges and questions in people's minds.

The new offering in the market which has got all banks running are the requirements of BASEL II & Automated Clearing House. The major challenge with change of regulation is that often the regulators are in a hurry to implement a sudden decision, rolling out action plans without proper research or understanding the broad implications and capabilities of the banks to comply with it.

Business Condition:

Severe liquidity or cash crisis is going on in the banking sector. Banks have become beleaguered to get rid of this liquidity crisis. As immediate solution to crises, banks are increasing their interest rates on deposits. Some are maintaining their with each passing day expenditures after borrowing from the call money market (for inter-bank transaction) at a high rate. In addition, some of the banks are borrowing from Bangladesh Bank through repos (Repurchase Agreements) after pledging the liquid assets like treasury bills and bonds. Their deposit management cost is increasing as they are collecting deposits at a high rate. Some of them are increasing their lending rate to cope up with this additional cost. As the interest rate on bank financing is rising, the cost of investment of the entrepreneurs is also increasing. As a result cost of production is rising. The entrepreneurs are avoiding bank financing as their cost of production is increasing. According to the bank analysts, the situation in the banking sector is not good at all. They have apprehended that if the current situation is not handled properly, the banking sector will face collapse in the future.

Bankers believe that the Bangladesh Bank is entirely responsible for such condition in the banking sector. As per their opinion, in the past seven months of 2010 Bangladesh Bank increased the CRR -- The banks' mandatory rate of reserve to the central bank twice. Because of this, approximately Tk 40 billion came to the central bank from the banks. As a result liquidity crisis began in the banking sector. As a result, in the first month of this year the rate of interest in the call money market climbed up to 170 percent that is recorded as the highest until now.

Dr Saleh Uddin Ahmed, former governor of the Bangladesh Bank, said that the initiative of the central bank to increase CRR was not proper and was not a timely step. He said that the reason was that in December, the banks adjust their entire year's transaction. In this time, they normally disbursed less amount of credit and collected greater amount of deposits, he stated. As a result, their balance sheet remained in good shape, he said. But as CRR rate was increased at that particular time, banks had to keep their deposited money with the central bank on mandatory basis, he stated. He said that the result had been as it was predicted. According to the analysts, the central bank has to take responsible decisions for getting rid of this situation occurred in the banking sector. Otherwise they are anticipating that the crisis in the banking sector will have a negative impact on the overall economy. Market Trend (Last one year): NBFI (Non Banking Financial Institution) Sector:

Pay Out History (%) NAV Paid up Authorized Instrument (per share) Capital(cr) Capital(cr) P/E EPS 2009 2010 2011 ROE ROA Credit Rating IDLC 40.21 123.8 400 15.9 6.30 10, 100B 35, 65B 25B 0.101 AAA DBH 32.826 100.9 200 19.52 3.99 17, 15B 10,25B 100B 0.149 AAA GSP 26.8 52.4 100 26.34 1.34 10B 0.023 N/A

Economic Condition:

Non-Bank Financial Institutions (NBFIs) play a significant role in meeting the diverse financial needs of various sectors of an economy and thus contribute to the economic development of the country as well as to the deepening of the country’s financial system.

Bangladesh Bank is empowered to oversee and regulate the affairs of the NBFIs under the provisions of the Financial Institutions Act 1993 and the Financial Institutions Rules 1994. To improve the quality of financial intermediation and meet up the growing needs of funds for financing investments in different sectors of the economy, the government intends to intensify the financial market by granting permission to establish private NBFI’s in conjunction with the private commercial banks. At present, non-bank financial sector of the country comprises investment and finance companies, merchant bankers, leasing companies, mortgage banks, insurance companies, and the capital market. Although small, the NBFI sector in Bangladesh is a growing component of the entire financial sector and NBFIs as a group create an opportunity to improve financial intermediation for the economy. NBFIs account for only 4% of the assets of the financial sector, compared to 70% accruing to the nationalized commercial banks (NCB) and 25% to the local private banks. NBFIs, however, account for 25% of the term financing (FY 1998-99) through leasing, project finance and merchant banking activities. The volume of term finance they provided in the last four years increased at the rate of 41% per annum, while that of the NCB decreased by 40% between 1997 and 1999.

Business Condition:

Initially, NBFIs were incorporated in Bangladesh under the Companies Act, 1913 and were regulated by the provision relating to Non-Banking Institutions as contained in Chapter V of the Bangladesh Bank Order, 1972. But this regulatory framework was not adequate and NBFIs had the scope of carrying out their business in the line of banking. Later, Bangladesh Bank promulgated an order titled ‘Non Banking Financial Institutions Order, 1989’ to promote better regulation and also to remove the ambiguity relating to the permissible areas of operation of NBFIs. But the order did not cover the whole range of NBFI activities. It also did not mention anything about the statutory liquidity requirement to be maintained with the central bank. To remove the regulatory deficiency and also to define a wide range of activities to be covered by NBFIs, a new act titled ‘Financial Institution Act, 1993’ was enacted in 1993 (Barai et al. 1999). Industrial Promotion and Development Company (IPDC) was the first private sector NBFI in Bangladesh, which started its operation in 1981. Since then the number has been increasing and in December 2006 it reached 29.

Market Trend (last one year): Cement Sector:

Pay Out History (%) NAV Paid up Authorized Instrument (per share) Capital(cr) Capital(cr) P/E EPS 2009 2010 2011 ROE ROA Credit Rating Heidelberg 93.13 56.5 100 8.53 29.12 38 43 45 0.143 N/A Confidence 67.07 45 50 12.99 7.88 10, 25B 25, 15B 20, 20B 0.066 N/A MI cement 50.28 135 500 24.67 4.29 15, 35B 0.064 AA3 Lafarge Sur 4.44 1161.4 1400 30.75 1.06 N/A (0.42) N/A

Economic Condition:

Last year, the International Monetary Fund (IMF) indicated that Bangladesh’s economy had become the 48th largest in the world. The UK Investors Chronicle has identified Bangladesh as one of the world’s seven hottest emerging markets due to its relatively stable currency with solid foreign reserves and record foreign remittances, as well as 6.7% real growth rate in 2011. The Bangladesh government has set itself the challenge to transform into a middle income country by 2021. In line with this strategic vision, the government has undertaken massive programmes for infrastructure development in partnership with the private sector. As the government allows 100% FDI, the infrastructure sector offers an interesting mix of opportunities for overseas interests.

Business Condition:

In January 2012, Bangladesh’s Export Promotion Bureau released data confirming that cement exports had witnessed a 21% increase in the first seven months of the current fiscal year (July 2011 – January 2012). Abdul Khaleq Parvez, Vice President of the Bangladesh Cement Manufacturers Association, commenting on the export situation said: “The export market is growing slowly as the prices of local cement increased sharply following devaluation of the local currency. Cement prices have increased by at least US$17/t”. The prices rose because of the sudden rise in production costs, this being a consequence of power shortages and a rise in labour wages.

Shankar Kumar Roy, General Manager, Business Development, Holcim Bangladesh, told WORLD CEMENT that in 2011 there were 45 active cement companies in the country. “Cement demand was 14 million t, while capacity reached 24 million t and exports totaled 250 000 t”. It is said that cement production has boomed in Bangladesh since the late 1980s, with many cement plants springing up across the country.

Market Trend (Last one year): Pharmaceuticals Sector:

Pay Out History(%) NAV Paid up Authorized Instrument (per share) Capital(cr) Capital(cr) P/E EPS 2009 2010 2011 ROE ROA Credit Rating Square Pharma 81.375 264.8 500 17.18 14.95 40, 25B 35, 30B 30, 35B 0.151 AA+ Bex. Pharma 67.49 304.6 910 12.51 4.02 15B 20B 21B 0.058 AA- Keya Cosmetic 25.04 148 200 9.25 4.06 15 15 21B 0.072 A

Economic Condition:

In Bangladesh the pharmaceutical sector is one of the most developed hi-tech sectors within the country's economy. After the promulgation of Drug Control Ordinance -1982, the development of this sector was accelerated. The professional knowledge, thoughts and innovative ideas of the pharmaceutical professionals working in this sector are the key factors for these developments. Due to recent development of this sector it is exporting medicines to global market including European market. This sector is also providing 97% of the total medicine requirement of the local market. Leading pharmaceutical companies are expanding their business with the aim to expand export market. Recently few new industries have been established with high tech equipments and professionals which will enhance the strength of this sector.

Two organizations, one government (Directorate of Drug Administration) and one semi government (Pharmacy Council of Bangladesh), control pharmacy practice in Bangladesh. The Bangladesh Pharmaceutical Society is affiliated with international organizations International Pharmaceutical Federation and Commonwealth Pharmaceutical Association.

Business Condition:

According to Bangladesh Pharmaceuticals and Healthcare Report Q1 2011, Bangladesh medicine sales reached Tk 7,000 crore in 2010. Business Monitor International in its latest report (Q1 2011) said Bangladesh has moved up one place to occupy the 14th position in 17 regional markets surveyed in BMIs Pharmaceutical & Healthcare Business Environment Ratings for the Asia region. Still, Bangladesh has a long way to go, the report said. This adjustment now sees Bangladesh placed below Vietnam and above Sri Lanka. Bangladesh's pharmaceutical rating is 40.2 out of 100, a figure that has changed marginally from the previous quarter but remains lower than the regional average of 53.1. Globally, Bangladesh occupies 67th position in BMIs 83 market- strong pharmaceutical universe.

The industry players forecast the growth trend would take the sales volume to Tk 10,000 crore in 2011. Square, Beximco, Eskayef, Incepta and Acme are the top five manufacturers by sales and growth rate.

Beximco grew faster than other companies at a staggering 33 percent in 2010 with Tk 523 crore sales. Incepta's sales and growth rate were Tk 665 crore and 31 percent respectively, followed by Acme's Tk 600 crore and 17 percent. Eskayef logged Tk 426 crore in sales and the growth rate was 27 percent, the third highest pace in the year, said a company official.

Sales of Square Pharmaceuticals, the market leader, were Tk 1,270 crore in 2010, up from Tk 1,116 crore a year ago. Sales grew 14 percent year-on-year.

Market Trend (Last one year): Travel & Leisure Sector:

Pay Out History(%) NAV Paid up Authorized Instrument (per share) Capital(cr) Capital(cr) P/E EPS 2009 2010 2011 ROE ROA Credit Rating Unique Hotel 60.65 256 1000 13.8 5.58 N/A N/A N/A 0.077 N/A

Economic Condition: From Argentinian heavy metal fans to Scottish retirees, Joyanta Howlader’s couch has hosted the full spectrum of backpackers who arrive — sometimes with mixed feelings — in impoverished Bangladesh.

The south Asian country seems an unlikely stop on a budget traveler’s itinerary, but foreign visitor arrivals are rising and Bangladesh’s lack of tourist infrastructure is, ironically, proving an attraction.

“ You have to be adventurous. There is no other way to travel in Bangladesh,” said Howlader, a 38-year-old Dhaka-based television producer who has hosted dozens of tourists through Couch Surfing, a hospitality exchange network.

“One backpacker who stayed with me, just hated it here, said he’d never come back. He was a real tourist, he just wanted an easy travel experience which Bangladesh is definitely not,” Howlader told AFP.

Business Condition:

With mod-cons now available in backpacker haunts in Thailand, Vietnam and India, where prices are shooting up, increasing numbers of budget tourists are seeking out alternative, low-cost travel experiences elsewhere in Asia. From spending a night on a stranger’s sofa for free, sampling Dhaka’s best biryani for a dollar a plate, or checking into a midrange hotel for less than 10 dollars a night, Bangladesh is about as cheap and adventurous as it comes.

Even a four-day all-inclusive cruise through the world’s largest mangrove forest on a traditional wooden boat will only cost around 150 dollars, far cheaper than a comparable trip in neighboring India, experts say.

Bangladesh is one of only a few places left in the region that still offer the original pioneering travel experience, according to Lonely Planet’s Bangladesh author Stuart Butler.

Market Trend (last one Year):

Food & Allied sector:

Pay Out History (%) NAV Paid up Authorized Instrument (per share) Capital(cr) Capital(cr) P/E EPS 2009 2010 2011 ROE ROA Credit Rating RD Food 19.6 44.8 100 18.75 1.28 12B 0.07 N/A Fuwang Food 14.93 53.4 100 17.77 1.73 10B 20B 20B 0.099 N/A

Economic Condition:

Besides, Tk 86 crore investment proposals were registered against four projects in food and allied sector, Tk 5.38 crore against one project in leather sector, Tk 305 crore against 18 projects in chemical sector, Tk 130 crore against 23 projects in engineering sector and Tk 183 crore against 14 projects in the services sector.

During the last year, the highest 4.4 percent of the investment proposals was made for food and allied sector.

Market Trend (Last one year): Engineering Sector:

Pay Out History (%) NAV Paid up Authorized Instrument (per share) Capital(cr) Capital(cr) P/E EPS 2009 2010 2011 ROE ROA Credit Rating Godenson 30.34 106.2 150 10.18 4.90 12.50 B 5, 10B 16 0.127 AA3 S. Alam Cold 15.69 98.4 350 13.04 3.92 15 5, 10B 15 0.158 A+ Aftab Auto 71.66 68.4 120 22.29 5.23 10, 40B 10, 30B 20, 20B 0.188 AA3

Economic Condition: Bangladesh is progressing through a phase of development where automation is the key to its economy and business. As the country continues to industrialize the importance of power generation and electricity supply becomes a key government priority.

Business Condition:

The engineering industry in Bangladesh continues to grow each year. This labor-intensive sector produces a diverse range of items, including import substitute machinery spares, plant machineries, small tools, toys, consumer items and paper products for the domestic market. Most of these enterprises are located in and around Dhaka metropolis. Entrepreneurs from China, Japan and Korea have taken advantage of Bangladesh's cheap and easily trainable labor and its infrastructure facilities to manufacture products for the export market.

Market Trend (Last one year): Multinational Sector:

Pay Out History(%) NAV Paid up Authorized Instrument (per share) Capital(cr) Capital(cr) P/E EPS 2009 2010 2011 ROE ROA Credit Rating BATBC 98.52 60 60 10.5 61.41 300 430 420 0.431 N/A BERGER 84.26 23.2 40 14.6 33.58 150 180 180 0.369 N/A Bata Shoe 113.91 13.7 20 16.13 30.02 220 250 250 0.372 AAA

Business Condition:

Nowadays, business is set in a global environment. Companies not only regard their locations or primary market bases, but also consider the rest of the world. In this context, more and more companies start to run multinational business in various parts of the world. In this essay, companies which run multinational business are to be characterized as ‘multinational companies'. By following the globalization campaign, multinational companies' supply chains can be enriched, high costs work force can be transformed and potential markets can be expanded. Consequentially, competitive advantages of companies can be strengthened in a global market. Otherwise, some problems are met in the changed environments in foreign countries at the same time. The changed environments can be divided into four main aspects, namely, cultural environment, legal environment, economic environment and political system problems. All the changed environments make problems to multinational companies. In particular, problems which are caused by changed culture environment are the most serious aspect of running a multinational business. This essay will discuss these problems and give some suggestions to solve them.

Market Trend (Last one year):