bsrm industrial tour report

7/31/2019 BSRM Industrial Tour Report

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Introduction


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Industrial Tour Report of 4th year, BBA (Hons.) under the faculty of

commerce of Chittagong University is a mandatory part for all students. The

report includes the practical knowledge and information obtained during the

visit to Bangladesh Steel Re-rolling Mills Ltd.

With a view to shaping human abilities it is necessary for a human to amass

practical knowledge along with the theoretical exercises. Without practical

knowledge it is difficult for a man to cope himself with a new environment.

That is why we have visited a company which is shortly known as BSRM.

At present time, BBA and MBA are very lucrative degrees for the business

personnels and the submission of industrial tour report is a very important

part of the BBA examination. During the study period, the students get the

opportunity to show their theoretical skill in practical field. If they accomplish

it successfully, they will be the future business talent and play important role

in trade, commerce, industrialization and future economic as well as

infrastructure development of the country.

Prelu

de


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Our academic study is limited in theories. But the proper educational

perfectness depends on practical knowledge, which is quite vital all students

of BBA. Due to globalization everything in the business world is changing

rapidly and will be more complex day by day. Without the previous practical

knowledge along with the theoretical knowledge none can understand the

practical field. Industrial Tour gives great opportunity to acquaint with the

practical field.

Importance

ofIndustrial

Tour


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The main objective of the industrial tour is to acquaint uswith the practical

fields along with the academic knowledge through fulfilling the academic

requirement. This practical knowledge will help us to face challenges in our

future career. In addition to the main objective, there are some other

objectives also, which are given below:

To know about Bangladesh Steel Re-rolling Mills Ltd. (BSRM)

To have an idea about the activities of BSRM.

To analyze and to know the application of accounting system in

BSRM practically.

To know the budgeting system of BSRM.

To identify the problems of accounting and budgeting system.

Objectives

of

Industrial

Tour


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The scope of the study is confined to only Bangladesh Steel Re-rolling Mills

Ltd factory ( Nasirabad unit) and its head office which is situated in

Sadarghat, Chittagong. And also it is more confined to the Accounting and

Budgeting System of that sample enterprise. I try to analyze their accounting

practice system and thats why this report is all about accounting practices in

Bangladesh Steel Re-rolling Mills Ltd. (BSRM).

Scope

of

IndustrialTour


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This industrial tour is conclusive as well as descriptive in nature.

Necessary statistical tools have been applied to carry out the assigned

study.

Making a formal questionnaire.

Survey has been intended through production division.

Conversation with production officials.

Practical knowledge gained by studying.

Finally, the composed data are classified, tabulated, interpreted,

analyzed and Presented in the form of research report there after.

Most of the information to be present on this report has been collected

from primary sources.

Methodology


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We tried our level best to collect maximum information. But this is not free

from shortfalls. While preparing the report we faced some problems or

limitations which are given below:

1) The success rate of this study may be limited due to lack of our experience

in collecting data.

2) We had to finish our report within a very few days.

3) Lack of proper communication with BSRM in the earlier stage.

4) Lacks of information is prevailed in this report because the representative

of BSRM did not disclose many confidential matter.

5) Our personal limitation, as still I am not institutionally and educationally

enough matured to prepare this type of report.

Limitati

on


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Description about the

Company


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Name : Bangladesh Steel Re-rolling Mills Ltd.

(BSRM)

Corporate Office : Ali Mansion, 1173/1207 Sadarghat Road,

Chittagong.

Factory location : 147/148/149 Baizid Bostami Road, Nasirabad

Industrial Area, Chittagong.

Profile of Enterprise :

a) Year of the establishment = 1960.

b) Beginning of Production = 1961

c) Type of the organization = Manufacturing

d) Source of Raw materials: = from local company and U K

e) Year of incorporation = 2002

f) Year of conversion into public = 2006

g) Rate of commercial production = 1st April, 2008

h) Authorized capital = TK. 200.00 crore

i) Issued subscribed paid up capital = Tk. 145.00 Crore

j) Listed to CSE & DSE = 18th January, 2009

h) Name of the products = M.S. Road Channel, angle,

Company at a

glance


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square bar, deformed bar, shaft.

Organogr

am


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Turnover Tk. 15,843,586,337

Gross Profit Earned Tk. 1,583,290,316

9.99% of Turnover

Net Profit Earned Tk. 574,084,231

3.62% of Turnover

Net Asset Value per Share Tk. 8.62

Earnings Per Share Tk. 39.59

Quantity Produced 3,50,326 MT

Quantity Sold 3,56,190 MT

Dividend Recommended 15% (stock)

Financial Highlights 2009


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Accounting Practices in

BSRM


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Accounting is an information system that identifies records and

communicates the economic events of an organization to interested users.

Accounting system is very important to an enterprise for the following

reasons:

To have a permanent the records of all business transactions.

To determine the production cost.

To estimate the expenses.

To prepare financial statements.

To inform about daily financial activities.

To determine VAT, Income Tax, Sales Tax etc.

Importance

of Accounting

System


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To ascertain profit and loss of the business.

To determine and evaluate future policies.

Finally, to inform the financial results of the enterprise to the

interested parties.

The Company follows International Accounting Standards (IAS) as were

adopted in Bangladesh and maintains its accounts on a Going Concern basis

under the Generally Accepted Accounting Principles (GAAP) on Historical

Cost Convention. They have good internal control system. All thetransactions are rectified automatically by cross check. All the disbursement

is controlled only by Cash Department. They use both external and internal

auditors to audit their accounts. Rahman Rahman Huq Chartered

Accountants perform as an external auditor for BSRM. The accounting

system of the company can be discussed under the following heads:

1) Books of Accounts.

2) Accounting process.

3) Statements prepared.

4) Preparation authority.

Accounting System of

BSRM


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5) Destination.

6) User of statements.

1)Books of Accounts:

Usually the company keeps all kinds of books of accounts. Such as:

Sales Account

Purchase Account

Cash Account

Debtors Account

Creditors Account

Stock ledger Account

Salary Account

Wages Account

And all other miscellaneous expenses Account.

For modernization they use various software of Accounting System namely:

Tally, Siscare etc.


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2)Accounting Process:

The Company follows the basic accounting cycle to record and to process

data. The cycle includes basic stages of accounting such as identifying,

journalizing, classifying, summarizing, preparing financial statements and

analyzing & reporting the information to the related parties. The company

uses both manual and computerized system.

3) Statements Prepared:

After transactions are identified, recorded, and summarized, four financial

statements are prepared from the summarized accounting data. They are:

a. Income statement It represents the revenues and

expenses and resulting net income or

loss for a specific period of time.

b. Owners equity statement It summarizes the changes in

owners equity for a specific of time.


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c. Balance sheet. It reports the assets, liabilities and

owners equity at specific date.

d. Statement of cash flows. It summarizes information about the

cash inflows and out flows for a

specific period of time.

4) Preparation authority:

Normally the task of data posting is conducted by the senior officer. The

assistant manager checked the posted data. Manager and Deputy Manager

prepare the financial statements.

5) Destination:

Generally the financial statements are sent to the Chairman, Managing

Director, Advisor and Director Operation. Each person gets a copy of

statements. Copies of financial statements of BSRM are enclosed here.


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The statements of the company are used by various parties for various purposes.

The parties are:

Management of the Company.

Tax and VAT authority.

Internal and External Auditor.

MIS Department.

Govt. Agencies.

Bank and Other financial organization.


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Limitation of Accounting System:

Though the company efficiently maintains the books of accounts and prepares

financial statements & effectively interprets them through the manual and

computerized system, there are some limitations in the accounting system of the

company. Some of them are given below:

The first limitation of the accounting system is the problems in gathering,

processing and reporting of information to the interested parties due to

software failure, overlapping of data, virus problem and back up of data.

The second limitation is the problems of accounting information use due

to proper knowledge of accounting system, software system and AIS.

The third limitation of accounting system is the shorting comings of

preparing financial statements and reports due to failure to provide

qualitative information, failure to analyze past activities.


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Summary and Conclusion


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BSRM is a private limited company. When visiting the factory and the office, we

have collected data on Accounting and Budgeting System of the company. They

use International Accounting Standards (IAS) and Generally Accepted Accounting

Principles (GAAP) in maintaining the books of accounts and preparing financial

statements. They also maintain the accounts on Going Concern basis. For the

accounting system they follow the basic accounting cycle both manually and with

computerized system. They keep all the necessary books of accounts and Income

Statement, Balance Sheet, Owners equity statements and Cash Flow Statements,

as financial statements. The company prepares three kinds of budget: Sales Budget,

Production Budget and Financial Budget. These budgets are prepared by different

person according to nature. Financial statements of the company generally audited

by both internal and external Auditors in accordance with the Auditing Standards

accepted in Bangladesh. Financial statements and reports are used by both various

internal and external parties related to the company.

Summ

ary


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BSRM is one of the most successful business corganizations in Bangladesh. They

are in business since 1952 with a strong position both in the manufacturing and

trading sector. During the study we have found that the Accounting and Budgeting

System of BSRM is very satisfactory. They have well educated accounts officer to

prepare the books of accounts. They also have a good Advisor who helps in overall

accounting and budgeting system of the company. They have a system of annual

audit which ensures the authenticity and efficiency of their Accounting and

Budgeting System. I shall hope that, the employees, officials, executives, and all

the workers of the company will be more sincere in their respective works so that

they can build up the company as the number one company in the country.

Conclusi

on

bsrm industrial tour report

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