Assignment
Submission Deadline: 03 May 2025.
1. Name of the Company: BDCOM Online Ltd.
2. Name of the Industry: IT Sector
3. Type: Public Limited Company
4. Market Category: A
5. Brief History
BDCOM Online Ltd. is a publicly traded company listed on the Dhaka Stock Exchange
(DSE) and Chittagong Stock Exchange (CSE), having its successful journey of over two
decades as an Internet Service Provider (ISP) and ICT Service & Solution Provider.
BDCOM was initially incorporated as a private limited company under the Companies Act
of 1994 on 12th February 1997. Subsequently, on 12th December 2001, BDCOM was
converted into a Public Limited Company. On 10th February 2002, the company
transitioned into a listed company through an Initial Public Offering (IPO).
Since its incorporation back in 1997, BDCOM has consistently been a trusted and forward-
looking ICT service and solution provider, committed to building nationwide ICT services
and solutions compatible with the demands of the 21st century. BDCOM operates under
the licensing authority of the Bangladesh Telecommunication Regulatory Commission
(BTRC).
With its diversified business policies and experienced, strong management capacity,
BDCOM has consistently held significant market leadership in various sectors including
ISP, IP Telephony, Telematics (VTS), and the Software industry. BDCOM has established
a robust countrywide MPLS network covering 495 Upazilas out of 495 in the country.
6. Vision, Mission & Objective:
The company nurtures the following vision and mission―
Vision: To be a trailblazer in the digital landscape providing quality services with trust and
reliability.
Mission: To empower individuals and organizations to limitless opportunities offering
Total ICT Solutions.
7. Services: Internet, Data Communication, IP Telephony, VTS, Software Development,
Professional Hosting, System Integration, Brand & Digital Communication are the
provided services of the company.
8. Board of Directors: BDCOM Online Ltd. consist of 6-member board of directors:
Chairman Mr. Wahidul Haque Siddiqui, Director Mrs. Qurrattul Ann Siddiqui, Director
(Representative of Hornbill Apparel Ltd.) Mrs. Quamrun Nahar Begum, Director
(Representative of Norban Fashion Ltd.) Mr. MD. Shafiqul Alom (Sumon), Independent
Director Mr. Md. Khalid Hussain FCA, Managing Director (Ex-Officio) Air Vice Marshal
Md. Zahidur Rahman, BSP, nswc, afwc, psc, GD(P), (Retd).
9. Key Management Personnel: The key management personnel of BDCOM Online Ltd.
are: Managing Director (Chairman of the Committee) Air Vice Marshal Muhammad
Nazrul Islam BSP, nswc, afwc, psc, GD(P), (Retd), Executive Director & Company
Secretary (Member Secretary) Mr. A.K.M. Kutub Uddin, Executive Director & Chief
Technology Officer Mr. S.M. Kamruzzaman, Chief Financial Officer Mr. Faker Ahmed,
FCA, Chief Strategy Officer Mr. Gazi Zehadul Kabir, Chief Information Officer Mr.
Anowar Hasan Sabir, Chief Marketing Officer Mr. Bipul Ranjan Saha, General Manager
Mr. Kazi Md. Abdullah, General Manager Mr. Sharif Sabbirul Alam.
10. External Auditor: Ashraf Uddin & Co, Chartered Accountants is the statutory auditor of
the company.
11. Organogram:
BDCOM Online Ltd. Organogram
Mrs. Qurrattul Ann
Siddiqui
Mr. Wahidul Haque
Siddiqui (Chairman)
Mrs. Quamrun Nahar
Begum (Hornbill
Board of Directors Apparel Ltd.)
Mr. Md. Shafiqul Alom Mr. Md. Khalid
(Sumon) (Norban Hussain FCA
Fashion Ltd.) (Independent)
12. Performance:
• Earnings Per Share (EPS): The EPS is reported at 0.89 per share in 2023-24 fiscal
year. Even though the EPS is positive, it is lower compared to that of previous
year’s 1.31. But the five-year EPS are respectively 0.89, 1.31, 1.40, 1.05, 1.09,
which indicates that the EPS is fairly good compared to those of other years.
• Return on Equity (ROE): Latest Net Profit after Tax is given as 50,898827 and
Shareholders’ Equity as 910,665609 and so ROE ≈ 5.59% (Net Profit after Tax,
50,898827 ÷ Shareholders’ Equity 910,665609). Which was, 74,546,051 ÷
916,853,281 ≈ 8.13% in the previous fiscal year. In case of ROE, the figure is
significantly lower than the previous year's performance. This decline suggests a
potential decrease in the company's efficiency in generating profits from
shareholder equity.
• Dividend: The recommendation in this company is to distribute a 5% cash dividend
plus a 5% stock dividend (i.e. a total dividend of 10%, subject to shareholder
approval at the AGM).
13. Financial Position:
• Total Assets: From the Statement of Financial Position, Total Assets are reported
at 1,286,223,485 BDT.
• Total Liabilities: Liabilities are the sum of Non–current and Current Liabilities.
With Non–current Liabilities of 14,957,981 BDT and Current Liabilities of
360,599,895 BDT, the total comes to 375,557,876 BDT.
• Shareholders’ Equity: Equity is given as 910,665,609 BDT which can also be
calculated by subtracting Total Liability from the Total Asset reported therein
(1,286,223,485 – 375,557,876 = 910,665,609). The value is quite huge and it carries
a very positive sign.
14. Others:
• Net Operating Cash Flow Per Share (NOCFPS): According to the report, current
NOCFPS is 1.36, which is a positive sign. However, it's a decrease from the
previous year's NOCFPS of 1.46. This indicates a slight reduction in the
company's ability to generate cash from its core operations compared to the prior
period.
• Net Asset Value Per Share (NAVPS): Speaking of NAVPS, the rate is
currently 15.95, slightly lower than the previous year's 16.06. This minor decrease
in NAVPS suggests a slight reduction in the company's net asset value per share.
• Number of Shares: The Issued, Subscribed, and Paid-up Capital is shown as
57,086,499 ordinary shares (with a face value of 10 BDT each).
15. Conclusion: Overall, the company maintains a solid financial position, as evidenced by its
healthy balance sheet and positive cash flow. However, the declining trends in ROE, EPS,
NOCFPS, and NAVPS compared to the previous year are notable concerns. While the
historical EPS trend suggests the current figure is within a reasonable range, the decrease
in profitability efficiency (as indicated by the ROE) and the reduction in cash flow
generation and net asset value need further investigation.