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Introduction
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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”.

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
personnel’s 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.
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Importanc
e 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:

 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.

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Scope
of
Industrial
Tour

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 that’s why this report is all about accounting practices in

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

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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 Page | 9

Name
glance
: 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,

square bar, deformed bar, shaft. Page | 10

Organogr
am
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Financial Highlights 2009

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)

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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. Page | 14

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

interested parties.

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. Page | 15

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. Owner’s equity statement It summarizes the changes in owner’s
equity for a specific of time.
 c. Balance sheet. It reports the assets, liabilities and
owner’s equity at specific date.

d. Statement of cash flows. It summarizes information about the Page | 17

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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6) User of the statements: Page | 19

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
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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 Page | 25

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, Owner’s 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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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.