Summit Power Limited: The First Bangladeshi Independent Power Producer

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Executive Summary
We have done our project on Summit Power Ltd. We have generated all of the required ratios from the year 2005-2009. Here, we did the All the common size statements and the average and growth rate. And we also forecasted the next 2 financial year’s income statement & balance sheet. All of the ratios has been describe and interpreted based on their financial report and the result we get. We analyzed all the ratios upturns and downturns and suggested according to the circumstance. We also included graphs and charts in this project for each ratio to have a quick check. Throughout the project we try to analyze the financial ratios of DSE listed company named Summit Power Limited and others in Power industries and compared with Summit power. And it’s Risk, return, Dividend policy and WACC. We tried as transparent accountability as possible according to financial report provided by the company.

We entirely relied on the financial statements of the Summit Power and other five companies chosen from the same industries for the purpose of preparing the reports. To know further information about the company we have also access to their web sites, as well as various newspapers available in libraries and the Internet. On the other side, we go to the Dhaka Stock Exchange (DSE) to get the information of financial reports of Summit power and others. We however still do not know much about their external and internal operations, as we are neither the part of the company management, nor the shareholders of the companies. We did many discussions and were able to acquire lots of information to make our decision. Company Overview

Summit Power Limited (SPL), sponsored by Summit Group, is the first Bangladeshi Independent Power Producer (IPP) in Bangladesh and until now the only local company in private electricity generation and supply business providing power to national grid. SPL was incorporated in Bangladesh on March 30, 1997 as a Private Limited Company. On June 7, 2004 the Company was converted to Public Limited Company under the Companies Act 1994. Summit Power Limited has successfully established in the year 2001 three power plants each with 11 MW capacities for sale of electricity to Rural Electrification Board (REB) under Build, Own and Operate basis at Savar, Narsingdi and Comilla. Capacity of these plants had been expanded to 105 MW during 2006 and 2007. In 2009 Summit Power Limited has commissioned another 4 new power plants increasing its cumulative production capacity to 215 MW in 7 power plants. In establishing these four new power plants SPL has formed two 99% owned subsidiary companies namely Summit Purbanchal Power Company Limited (SPPCL) and Summit Uttaranchal Power Company Limited (SUPCL). Considering the immense opportunities, the company is striving to establish more power plants around the country. The fast-growing company has set a mission to expand the company with a power generation capacity to the tune of 1000 MW, which is a modest 20% of the electricity requirement in Bangladesh.

To provide quality and uninterrupted electricity to the vast majority of rural Bangladesh for their personal, social and economic development.[Financial Report] Mission
“Empowering Bangladesh, we can and we will”
To expand the company into a power generation capacity to the tune of 1000 MW which is 20% of the electricity requirement of Bangladesh and maintain that level. [Financial Report] Objective
* Generate and provide uninterrupted reasonably priced electricity to our customers. * Efficient utilization of capital, machines, material and human resources. * Continuous improvement of customer satisfaction and resource management. [Financial Report]

Advantages of this Project
From this project we have learned many interesting things. Some of our learning and experiences are mentioned bellow: Firstly, through this project, we were able to apply theories that we have...
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