Financial Performance Analysis of Northern Electricity Supply PLC (NESCO)

Abstract

It is a tale of about a century and a quarter ago. The king of Bhawal of Gazipur of the then East Bengal (presently Bangladesh) under British India is known as the first user of electrici ty in East Bengal. He illuminated his palace with the electricity using a generator imported from England in the nineteenth century. This royal and fancy initiative was a big surprise to the people of Bhawal who were far away from the modern civilization. After that in 1901 a generator was installed at the residence of Mr. Ahsanullah, the Nawab of Dhaka. In 7th December, 1901 Mr. Bolton, a British citizen inaugurated electrification of Ahsan Manzil by pressing an electric switch. A company named Octavious Still, gradually brought a few elite buildings including the Ahsan Manzil and some important roads of Dhaka under electrification by the financial help of Nawab Ahsanullah. As the company's power generation capacity was limited, the power supply was also confined to only some posh areas. In 1919, ‘DEVCO’ a British company introduced the commercial power distribution system within a limited area of Dhaka. Later in 1933, the company built “Dhanmondi Power House” with the generation capacity of about 06 MW at Paribag in Dhaka and started to distribute power commercially. Residents of the elite society of the city were the consumers of this electricity. The use of this costly electricity added a new feather in the crown of their aristoc racy. The electricity plays a vital role in underpinning the economic development of a country. In the backdrop of Financial Sector Reform Policy streamlining the country’s economy, North ern Electricity Supply PLC (NESCO) has achieved great success in all areas of operations with ultimate objective of improving the socio-economic development of the country. This internship report emphasizes the Financial Performance Analysis of Northern Electricity Supply PLC. There are seven chapters in this report which cover specific areas related to the analysis. This report's main objective is to identify Northern Electricity Supply PLC's finan cial position and analyze the financial performance to identify the strengths and weaknesses and finally provide recommendations to overcome the limitations.