Financial statement analysis & internal audit procedure of Raj Lanka Power Company Limited

Abstract

Raj Lanka Power Company ltd (RLPCL) is a 52.2 MW Power Plant situated at Borovita, Natore, Rajshahi, Bangladesh. It's a subsidiary of LTL Holdings. It is promoting only 1 brand that Electricity. As a foreign Company they gain Government trust by their quality production of Electricity. This report applies Financial Performance Evaluation of Raj Lanka Power Company ltd. It means how well the Company performs. The main data is collected from the annual financial reports of the company from 2015 (March) to 2016 (March) which are provided by the employees of the company. Different financial ratios are evaluated such as liquidity ratios, asset management ratios, profitability ratios, debt management ratios and finally measure the best performance of the company. The graphical analysis and comparisons are applied for the measurement of all types of financial ratio analysis. Liquidity ratio is conveying the ability to repay short-term creditors and its total cash. It determines the performance of short term creditor of the company under the three categories such as current ratio, quick ratio and cash ratio. Asset management ratio is measured to know how the company is using and controlling its assets. Profitability ratio and debt coverage ratio are also measured to know overall market position of the company in the current market. I hope this report will be helpful for the management of the Company who are responsible for taking decisions and formulating plans for future. It will also help the creditors who are the provider of loan capital of the Company. They can decide whether they want to extend their loans or not in future. In the recommendation part I have tried my best to give some advice based on their problems that I found from the analysis. So this report will show a clear picture about RLPCL’s performance in the last Three years.