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Introduction

Prelu de
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.

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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.

Importance of Industrial Tour


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.

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Objectives of Industrial Tour


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:

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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.

Scope 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).

Methodol ogy
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.

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Limitati on
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.

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Description about the Company

Company at a glance
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 : = 1960. = 1961 = Manufacturing = from local company and U K = 2002 = 2006 = 1st April, 2008 = TK. 200.00 crore = Tk. 145.00 Crore = 18th January, 2009 = M.S. Road Channel, angle,
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a) Year of the establishment b) Beginning of Production c) Type of the organization d) Source of Raw materials: e) Year of incorporation f) Year of conversion into public g) Rate of commercial production h) Authorized capital i) Issued subscribed paid up capital j) Listed to CSE & DSE h) Name of the products

Organogr am

square bar, deformed bar, shaft.

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Financial Highlights 2009

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Turnover Gross Profit Earned

Tk. 15,843,586,337 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 Earnings Per Share Quantity Produced Quantity Sold Dividend Recommended

Tk. 8.62 Tk. 39.59 3,50,326 MT 3,56,190 MT 15% (stock)

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Accounting Practices in BSRM

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Importance of Accounting System


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.

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.

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Accounting System of BSRM

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 the transactions 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.

5) Destination. 6) User of statements.


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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.

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.

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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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6) User of the statements:


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

Summ ary
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.

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Conclusi on
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.

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