Financial and Operational Analysis of Shopnil Printing & Packaging

Abstract

This report presents a comprehensive financial and operational analysis of Shopnil Printing & Packaging, a carton manufacturing company located in Dhaka, Bangladesh, prepared as a partial fulfillment of the BBA degree requirements at Sonargaon University. The analysis covers the period of my internship engagement with the organization and provides detailed insights into the company's business operations, financial performance, and strategic positioning in the packaging industry. Shopnil Printing & Packaging is engaged in the manufacturing and supply of quality corrugated cartons, serving various industries with their packaging needs. The company operates from a 2,800 square feet facility at 58, Mridhabari (City Corporation Road), Matuail, Jatrabari, Dhaka-1362. With a workforce of 45-50 employees, the company operates on a single shift basis and maintains a strong market presence in the corrugated packaging sector. Key Business Metrics: - - - - - - - - Monthly Revenue: BDT 450,000 Annual Revenue: BDT 5,400,000 Monthly Cash Flow: BDT 1,500,000 Gross Profit Margin: 10% Net Profit Margin: 4% Outstanding Credit/Loan: BDT 3,800,000 Annual VAT: BDT 1,500,000 Annual Tax: BDT 500,000 The company produces two main types of corrugated cartons: 3-ply cartons (20,000 pieces) and 5-ply cartons (10,000 pieces), utilizing various raw materials including liner, media, silicate, rong, tar, stars, kastik, and sohaga. The production facility is equipped with essential machinery including corrugators, pasting machines, pressing machines, die-cutting machines, stitching machines, cutting machines, printing machines, and a generator. Operationally, the company maintains an efficient production system with 1 shift operation and utilizes 3 trucks for logistics and distribution. The waste management system processes approximately 20 tons of waste materials, which are sold to other mills for recycling, demonstrating the company's commitment to environmental sustainability. The analysis reveals that Shopnil Printing & Packaging maintains steady revenue growth with healthy cash flow management. However, the company faces challenges related to high credit exposure and relatively low profit margins, which are typical in the competitive packaging industry. The company's strategic focus on quality production, operational efficiency, and customer satisfaction positions it well for future growth in the expanding packaging market of Bangladesh.