Internship Report i i

On i

Accounting Information System of i i i i

MODERN POLY INDUSTRIES LIMITED

i i i

(This internship has been submitted for partial fulfillment of the degree of
i i i i i i i i i i i

Bachelor of Business Administration with Major in Accounting)

i i i i i i i i

Prepared By i

Mohammad Tanvirur Rashid i i

Matric No. B-141028 i ii

Major: Accounting & Information System

iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii i i i i

Program: BBA i

Semester: Autumn 2017 i i

Internship Duration: 01.04.2018 - 30.06.2018

i i i i

Date of Submission: i i

Department of Business Administration i i i

Faculty of Business Studies i i i

INTERNATIONAL ISLAMIC UNIVERSITY CHITTAGONG i i i

 Internship Report i i

On i

Accounting Information System of i i i i

MODERN POLY INDUSTRIES LIMITED

i i i

(This iinternship ihas ibeen isubmitted ifor ipartial ifulfillment iof ithe idegree iof iBachelor iof
iBusiness i Administration iwith i Major i in i Accounting)

Prepared By: i

Mohammad Tanvirur Rashid i i

Matric No. B-141028 i ii

Major: Accounting & Information System

i i i i

Program: BBA i

Semester: Autumn 2017 i i

Supervised By: i

Mr. MD. Musharof Hossain

i i i

Assistant Professor i

Department of Business administration

i i i

International Islamic University Chittagong

i i i

Signature of Supervisor i i

Internship Duration: i

1 April 2018 to 30th July2018

st
i i i i i

Date of Submission i i

Department of Business Administration

i i i

Faculty of Business Studies i i i

INTERNATIONAL iISLAMIC iUNIVERSITY iCHITTAGONG

2
 Letter of Submission i i

January 25, 2018 i i

To

The Convener i

BBA Internship/OCP/Dissertation Committee 2018

i i i

Department of Business Administration i i i i

International Islamic University, Chittagong. i i i

Subject: Submission of Internship Report.

i i i i

Dear Sir, i

With great pleasure I am submitting my Internship Report on “A Study on

i i i i i i i i i i i i

Accounting Information System of Modern Poly Industries Limited”. This

i i i i i i i i i

Internship Report has been submitted as an important requirement of BBA

i i i i i i i i i i i

curriculum. I have tried my best to prepare the paper in consistence with the optimal
i i i i i i i i i i i i i i i

standard under your valuable direction.

i i i i i i

I have found the study is quite interesting, beneficial & insightful. I have tried my
i i i i i i i i i i i i i i

level best to prepare an effective & creditable Internship Report. I hope you will find
i i i i i i i i i i i i i i i

this Internship Report significant.

i i i i

I welcome your entire query & take pride to answer them.

i i i i i i i i i i

Yours sincerely, i

Mohammad Tanvirur Rashid i i

ID. No.: B-141028

i i

3
 Acknowledgement

I am expressing gratitude to the Almighty Allah the Merciful and the Benevolent His
i i i i i i i i i i i i i

special kindness to give me the opportunity to complete the Internship Report

i i i i i i i i i i i i

successfully. At the very outset I extended my heartiest gratitude to my teacher and

i i i i i i i i i i i i i i

supervisor Mr. MD. Musharof Hossain for his sincere advise, guidance and valuable
i i i i ii i i i i i i i

suggestion in preparing this report.

i i i i i

In this regard, I would like to extend my sincere to all of my teacher for the invaluable
i i i i i i i i i i i i i i i i i

contribution and cooperation in advancing this report and thereby completing my

i i i i i i i i i i i

BBA program ultimately. I am grateful to different respondent’s collegian to expend

i i i i i i i i i i i i

important time.
i i

I am particularly thankful to Mr. Abu Sufian Chowdhury, Managing Director of

i i i i i i i i i i i

Modern Poly Industries ltd. I am very much grateful to the authority of Modern Poly
i i i i i i i i i i i i i i i

Industries Limited, Amir Market, Khatungonj, Chittagong for their kind co-
i i i i i i i i i i

operation.

I am also grateful to the Faculty of Business Studies of IIUC for providing me such
i i i i i i i i i i i i i i i

opportunity to come closer to real situation.

i i i i i i i

4
 Executive Summary i

Accounting information system has become an essential appliance to maintain an

i i i i i i i i i i

affiliation among all departments within an organization. Effective AIS has become a
i i i i i i i i i i i i

pre-condition for flexible flow of information, which ensures availability of

i i i i i i i i i i

information during any decision making. Moreover, accounting information system

i i i i i i i i i

is also useful to set good internal control within a firm.

i i i i i i i i i i i

Modern Poly Industries Limited is a large-scale industry producing synthetic yarns in

i i i i i i i i i i i

Bangladesh, who has maintained a structured accounting system to monitor and

i i i i i i i i i i i

control their financial activity.

i i i i

The main purpose of this study is to go through the Accounting Information System
i i i i i i i i i i i i i

of Modern poly Industries Limited.

i i i i i

I have tried to draw up my observations and working experience at Accounting and

i i i i i i i i i i i i i

Finance Department of Modern Poly Industries Limited. This report starts with
i i i i i i i i i i i

background, objective and limitations for preparing the report. Then, overviews of
i i i i i i i i i i i

MPIL, its products, department, organogram are described.

i i i i i i i i

Afterwards, the key part of this report describes Accounting Information System of
i i i i i i i i i i i

the company. How AIS is the efficient and effective collection and storage of data
i i i i i i i i i i i i i i

concerning MPIL financial activities, including getting the transaction data from
i i i i i i i i i i

source documents, recording the transactions in journals, and posting data from
i i i i i i i i i i i

journals to ledgers and how AIS is to supply information useful for making
i i i i i i i i i i i i i i

decisions, including producing managerial reports and financial statements.

i i i i i i i i

Before concluding the report at the final stage, I have put forward few
i i i i i i i i i i i i

recommendations, based on my observation and knowledge.

i i i i i i i

5
 TABLE OF CONTENTS
i i

Chapter-1 Background of study i i Page Noi

1.1 Introduction 9

1.2 Objectives iof ithe istudy 9

1.3 Methodology iof istudy 10
1.4 Scope iof ithe istudy 11
1.5 Limitations iof ithe istudy 11

Chapter-2 An overview of Modern Poly

i i i i

Industries Limited
i i

2.1 History of the organization

i i i 13

2.2 Products iand iservices 14-15

2.3 Product iApplication 16
2.4 Organizational iStructure 17
2.5 Board iOf iDirectors i 18
2.6 Vision, imission iand iobjective 19
2.6 Vision, imission iand iobjective 19
2.7 Financial iHighlight iof ithe 20-21
iOrganization:

Chapter-3 Accounting Information System

i i

3.1 Accounting iInformation iSystem 24

3.2 Key iComponents iof iAccounting 24
iInformation iSystem

3.3 Functions iof ian iAccounting 25

iInformation isystem

3.4 Reliability iof iAccounting iInformation 25

isystem

3.5 Basic iSubsystems iin ithe iAccounting 26

iInformation iSystem

6
Chapter-4 Accounting Information System i i

of Modern Poly Industries

i i i i

Limited i i

4.1 Introduction 27

4.1.1 Flow of Work and Information

i i i i 27
between Sub Departments
i i i i

4.1.2 Work iflow ibetween icorporate ifinance 27

iand iAccounts iDepartment i

4.1.3 Work iFlow ibetween iBusiness iplanning 28

iand iAccounts iDepartment i

4.1.4 Work iflow ibetween iSupply iChain 28

iManagement iand iAccounts

iDepartment i

4.1.5 Work iflow ibetween iAsset iManagement 29

iand iBusiness iPlanning i

4.2 Relevant iSoftware i 29

4.2.1 ICMS 29
4.2.2 Accounting iIntegrated iSoftware i 30
4.2.3 Email 30-31
4.3 Internal iControl iThrough iAIS 31-32
SWOT iAnalysis iof iAIS i 33

Chapter-5 Findings, Recommendations &

i i

Conclusion i

5.1 Summary iof iFindings i 35

5.2 Recommendations 35
5.3 iiiiiiiiiiiiiiiiiiiiiiii Conclusion 36

References 37

7
 Chapter One:
i

Background of the study

i i i i

8
1.1 Introduction
i

The iinternship iis ia ipart iof ithe iacademic icurriculum, iwhich ireflects iboth iacademic iknowledge iand
iprofessional iknowledge. iThis iInternship ireport ibased ion ithree i months ipractical iwork iexperience

i in iModern iPoly iIndustries iLtd. iModern iPoly iIndustries i is ione iof ithe i largest ipolyester i yarn

i manufacturer iin iBangladesh. i For iany iBusiness i firm iaccounting iand i financial iactivities iare

iconsidered ias i most icrucial i function ithat i is iwhy i big i corporates ilike i Modern ipoly iIndustries i ltd. i is

ipracticing ia istandardized i function ito imaintain iand i monitor itheir i financial iactivities. i For ia istudent

iof iBBA iwith i Accounting i major, ithis ikind iof icorporates i is ia i big iplatform ito iacquire ipractical

iknowledge ion i Accounting iand iFinancial isector. i i i

Moreover, iModern iPoly iIndustries iltd. iis ione iof ithe irenowned iand itop iranked iIndustries iof
iBangladesh. iVarious i foreign iand i local iorganization itaking iservices i from i Modern iPoly iIndustries

i ltd. iIt iwas ireally ia igreat iexperience ito iwork iin i Modern iPoly iIndustries i ltd. iDuring ithe i internship

iperiod, iI iwas iassigned i in itheir i Accounts idepartment. iThis ireport iwill i be ia ishort isummary iof i my

iWork iexperience. i i i

1.2 Objectives of the study

i i i i

 To ifulfill ipartial irequirement ifor iobtaining ithe idegree iof iBachelor iof iBusiness
iAdministration. i

 To iaccumulate itheoretical iknowledge iwith ipractical iexperience. i

 To iaddress iand iunderstand iaccounting iprocedures iof ia icompany iby iworking iin ipractical
ifield. i

 To irecommend isome iissues iregarding iaccounting iinformation isystem iof ithe icompany

9
1.3 Methodology of the study
i i i i

Sources of Data:i i

Both iprimary iand isecondary isources iof idata ihave ibeen iused iin ithis istudy:

1) iiiiii Primary sources: i

Among ithe iprimary isources, ithe imain isources iare:

1. Face ito iface iinterview iof ithe iemployees iof ithe iModern iPoly iIndustries iLimited
2. Official irecord iof irelated isection iof ithe iModern iPoly iIndustries iLimited
3. Direct iinteraction iwith ithe icustomers.

2) iiiiii Secondary sources: i

4. Annual iReport iof ithe iModern iPoly iIndustries iLimited

5. Relevant iBooks iof ithe iModern iPoly iIndustries iLimited iand
6. Modern iPoly iIndustries iLimited iwebsite.

Analysis and presentation data

i i i

Some istatistical itools i& itechniques iand isoftware isuch ias iMicrosoft, iExcel ietc iare iused iin ithis istudy
ifor ianalyzing ithe icollected idata ito ipresent ithose idata iclearly.

10
1.4 Scope of the study
i i i i i

Modern iPoly iIndustries iis ione iof ithe ilargest ipolyester iyarn imanufacturer iin iBangladesh. iThe iscope
iof ithe istudy i is i limited ito ithe iAccounts ioffice i in i Amir iMarket, iKhatungonj ionly. iThe ireport icovers,

i journal, i ledger, i financial i statements, ivouching irelated iknowledge iabout iModern iPoly iIndustries

iLtd.

1.5 Limitations of the study

i i i i

To iprovide icurrent iinformation iand ito imake ithe ireport iread-worthy, iSupport ifrom ivarious isources
i is iessential. iIn i spite iof i having i my iwhole i hearted ieffort, iI icould inot icollect isome i information

irequired iat ithe itime iof ithe istudy, iso ithis istudy i is i not ifree i from ithe i following i information:

• Improper icombination iamong ivarious idepartments.

• The idata iseems iinsufficient imay ibe isuffering ifrom ilack iof ireliability ito ishow iextent.
• There iis isome iconfidential iinformation iwhich iis inot isupposed ito iprovide.
• Time iconsuming iis ithe ilimitation iof ithe ireport. iThe iallocated itime iis inot isufficient ito iknow
iabout igeneral i banking.

• As ithe ibranch iis iso ibusy, ithe iofficers iwere ibusy iwith itheir iregular iactivities iso imuch, ifor ithis
ireason i it iwas iproblematic ito iextract iproper iinformation.

11
 Chapter Two: i

Overview of the Organization

i i i

12
2.1) History of the Organization
i i i i

Modern iPoly iIndustries iis ione iof ithe ilargest ipolyester iyarn imanufacturer iin iBangladesh. iIt iexports
ihigh iquality ipolyster iproducts i in i various icountries i of ithe iworld.

Modern iPoly iIndustries iLimited i(MPIL) iwas iincorporated ion i21 iSeptember i1999 iVide
iRegistration iNo. iC-H-C iNo. i3447 iof i 1999 ias ia iPrivate iCompany, i limited i by ishares i in i Chittagong,

iBangladesh iunder ithe i Companies i Act i1994. iThe icompany i was i incorporated i in ithe i name iand istyle

ias i"Modern iPolyfoam iProducts iLimited". iSubsequently ion i22 iJuly i 2001 ithe i name iwas ichanged ito

iModern iPoly iIndustries iLimited. iThe icompany iwas iconverted iinto iPublic i Limited iCompany ion i03

iAugust i2009.

Modern iPoly iIndustries ilimited iis ia imanufacturing iCompany iof iPOY i(Partially iOriented iYarn) i&
iDTY i(Drawn iTexturized iYarn) iproducts. iThe icompany i started iits icommercial ioperation ion i 01

iJuly i 2003.

Since ithe iinception iof ithe icompany iit iis iproducing ibest iquality ipolyester iYarn. iPolyester itextured
i yarns iare i manufactured i& iclosely iquality icontrolled ito ithe istandards i& ispecification ito isuit ithe

idemand iof idifferent iend iuser i(High ispeed iwarp- iknitting i & icircular iknitting iand iweaving. iTaffeta,

iMosquito inet, iFleece, i Jorjet, iSiphon, i Knit i fabrics( i single i jersey, idouble i jersey), iBlanket,

iShirting’s, iSuiting, iTwill, iLabel, iCurtain, iUpholstery iand idifferent itypes iof i fabrics iare ithe i main

iproduct iof iPolyester iYarn. iAlready i fabrics i made i from iour iyarn iare ibeing iregularly iexported ito iEU

icountries i by i meeting ithe iEU istandard.

Modern iGroup istarted iits ijourney iwith ithe iestablishment iof iModern iHatchery iLimited iin ithe iyear
i1998 iby ithe i family i members iof iMr i Abul ikalam, i Managing iDirector iof iT i K iGroup iof i industries,

iDue ito iaffiliation iwith ithe iage iold iT i K iGroup iand ihaving i long iexposure i in ithe i management iof iT iK

igroup, ithe ishareholders iof iModern iGroup icould ibe i visionary i from ithe i very ibeginning iand

iexpanded i its i business i in idifferent isectors ilike ishrimp, i yarn, itrading, ipower, ietc. iduring ithe ishort

ispan iof i12 i years. iNow ithe igroup ihas iannual iturnover iof iTk. i2,350 imillion iand iplaced ithem ias ithe

i leader i in ithe isynthetic i yarn iand ishrimp i hatching isectors iof ithe icountry. i i i

13
2.2 Products / Services of the Organization
i i i i i i

The imain igoal iof iModern ipoly iIndustry iLimited iis ito itouch ithe ihearts iof itheir ivaluable icustomers
ithrough itheir ideed inot ionly i by iwords iand ialso iby ifirmly istand ion itheir istatement. iModern ipoly

igives ipriority ito iquality iassurance. iTheir iR i & iD icell ialways i stays iat ithe i forefront iof i innovation iand

iquality icontrol. iPolyron iwell irecognized ibrand i in i Bangladesh ias iwell ias i in iExport iMarket.

Their iproduct ivariations iare igiven ibelow i

1. DTY Yarns (Draw Textured Yarns):

i i i i

Denier irange: i30 ito i900; iFilament iRange: i24 ito i216

Modern ipoly iadopt ithe iworld ifamous itechnology iwith ibrand inew imachineries iof iBarmag,
iGermany iand iTMT, iJapan

2. FDY Yarns (Fully Drawn Yarns):

i i i i

Denier iRange: i50 ito i600; iFilament iRange: i24 ito i144

Modern ipoly iadopt ithe iworld ifamous itechnology iwith ibrand inew imachineries iof iBarmag,
iGermany iand iTMT, iJapan

3. Dope Dyed DTY and FDY Yarns (DTY and FDY color Yarns):
i i i i i i i i i i

Denier iRange: i75 ito i900; iFilament iRange: i24 ito i216

Modern ipoly iuse ithe iWorld iClass imaster ibatch ichips idosing isystem, inamely iK-tron ifrom
iSwitzerland.

4. Polyester Spandex Yarns (Lycra Yarns):

i i i i

Denier iRange: i75-20 ispandex; i150-40 ispandex; i200-40 isapndex; i200-70 ispandex; i300-40
ispandex iand i 300-70 ispandex

14
 DTY

FDY

Polyster iDoped
iDyed iYarn
iColor

Polyster iDTY
ispandex iyarn i
i(LYCRA)

Polyster
iFabrics i

15
2.3) Product Application
i i

DTY i(Draw iTextured iYarn) iand iFDY i(Fully iDrawn iYarn) iyarns iare iwidely iapplied ito imake ithe
ivarious ispecial i fabrics iwith idifferent isectors, isuch i as: i

 warp knitting area:

i i

Mesh iFabrics, imosquito inet, ifishing inet i, itricot ifabrics iand ivelvet ifabrics

 circular knitting area:i i

Fleece iFabrics, iMesh iFabrics, iSingle ijersey iFabrics, iJacquard iKnit iFabrics

 Equal length DTY packages:

i i i

Modern iPoly igiving iequal ilength iDTY ipackages ifor iits iesteemed icustomers iwho iuses ithese
ipackages i for itheir ipremium iproducts iin icircular iknitting iand i in iwarp iknitting

 Weaving Area: i

Denim iFabrics, iShirting iand iSuition iFabrics, iTaffeta ifabrics, iCarpet iFabrics i, iJacquard
ifabrics, icanopy iand itent ifabrics, icurtain i fabrics i, i home itextile i Fabrics.

 Twisting Area: i

Sewing iThreads ifor igarments iand iapparels. iEmbroidery iyarn ifor igarments, iSarees iand
idress i materials.

 Dope Dyed DTY and FDY Yarns(DTY and FDY color Yarns):
i i i i i i i i i

We iproduce idyed iyarns idirectly iin ispinning ithrough idope idyeing i, imaster ibatch ichips i. iWe
i maintain i high i level iof idye idepth iconsistency i for isuper idye iuniformity iwith ia i very igood

icolor ifastness iof i final i fabric.

 Polyester Spandax Yarns (Lycra Yarn):

i i i i

This iis iused ifor istretch ifabrics ilike iDenim, iSocks ietc

16
2.4) Organizational Structure of Modern Poly Industries Limited
i i i i i i i

Chairman

Managing
iDirector

Deputy
iManaging
iDiretor

Accounts iand
Purchase Commercial Sales i HR IT
ifinance iDIvision

Executive Assistant
Senior iG.M GM
iDirector iManager

Assistant
Deputy iManager Senior iExecutive Executive iOfficer
iManager i

Executive iOfficer Assistant Assistant iSales

Senior iOfficer
i imanager i iOfficer

Senior iExecutive

Assistant iAccountatnt
Officer

17
2.5) Board of Directors
i i i i

Mr.Abul ibashar
iChowdhury
Chairman

Mr. iAbu iSufian

iChowdhury
Managing Director

Mr. iAbul iMashud

iCHowdhury
Deputy Managing Director

MOhammad Miss iRizwana MIss iFarzana

iMustafa iHaider iAfroze iAfroze
Director Director Director

18
2.6) Vision, Mission & Objective of the Organization
i i ii i i i i

 Our Mission:
i

 To itouch ithe ihearts iof iour ivaluable icustomers ithrough iour ideed inot ionly iby iwords iand
iwe i firmly istand ion iour istatement.

 Our Obsession:
i

 Having ilatest itechnologies i

 innovative ihuman iresources, i
 All iare isingularly ifocused ion iadding ivalues ito iour iproduct.

 Our Management:
i

 We iare iprofessionally imanaged iby iour istrong ileadership iand ientrepreneurial ivision.
 Our iHuman iResources iare iwell itrained, iskilled iand iperformance idriven. i
 It iincludes ihighly iqualified iengineers iwith ithe ilatest itechnical iknow-how iand
i innovative iabilities. iThese iare ithe i vial iassets ithat ihave i helped ius ito ireach iand

i maintain iour ileadership istatus.

 Our Safety System:

i i

 Modern iPoly iIndustries iLimited ialso istriving ivery ihard ito iimplement iall isafety
i measures i for i man i & i materials. i

 Training iis ibeing igiven ito iall iit's iemployees ito imaintain ithe istringent isafety
i measures.

19
 Our Product:
i

 Modern iPoly iIndustries iLimited igives ipriority ito iquality iassurance. i

 Our iR i& iD icell ialways istays iat ithe iforefront iof iinnovation iand iquality icontrol.

 Vision:

 Attain iand imaintain ileadership istatus iin iour ichosen ifield iof iPolyester iYarn
iBusiness.

 Focusing iall iour iactions itowards itotal icustomer isatisfaction.

 Continuously istriving ito irenovate iour iprocess, iproducts iand iservices.
 We iensure ihigh ilevel itransparency iof iour iperformance iin ithe ioperational ilevels iof
iproduction i& i business iwith ithe i integrated ihands iof iour idedicated ipeople i from

idifferent idiscipline iand iethnicity i so ias ito icope iup iwith ithe icourse iof iaction iwe ido.

20
2.7 ) Financial Highlight of the Organization:
i i i i i

21
22
 Chapter Three:
i

Accounting Information System

i i i

23
3.1) Accounting Information System:
i i i

An iinformation isystem iis ia iformal iprocess ifor icollecting idata, iprocessing ithe idata iinto iinformation,
iand idistributing ithat iinformation ito iusers. iThe ipurpose iof ian iaccounting i information isystem i(AIS)

i is ito icollect, istore, iand iprocess i financial i and iaccounting idata iand iproduce i informational ireports

ithat imanagers ior iother i interested iparties ican iuse ito imake i business idecisions. i

An iaccounting iinformation isystem iis iusually irun iusing ielectronic idata iprocessing iequipment, ibut
ican i be ioperated iless iefficiently iwith ia i manual i bookkeeping isystem. iUsing ia icomputer-based

isystem i is i highly iadvantageous, isince i it iautomates imany iaccounting iprocesses iand ithereby ireduces

itransactional ierror irates. iIt ican ialso iproduce ireports i much i more iquickly ithan ia i manual i system.

An iaccounting iinformation isystem iis itypically icomprised iof iseveral imodules, ieach iof iwhich iis
idesigned ito ihandle icertain itypes iof itransactions. iThese i modules i include:

 Accounts ipayable
 Accounts ireceivable
 Inventory
 Payroll
 General iledger
 Reporting

3.2) Key Components of Accounting Information System

i i i i i i

An iaccounting i information isystem itypically i has i six i basic ikey iComponents i:

 People iwho iuse ithe isystem, i including iaccountants, imanagers, iand i business ianalysts
 Procedure iand i instructions iare ithe iways ithat idata iare icollected, istored, iretrieved, iand
i processed

 Data i including iall ithe i information ithat igoes i into ian iAIS
 Software iconsists iof icomputer iprograms iused i for iprocessing idata
 Information itechnology i infrastructure iincludes i all ithe i hardware iused ito ioperate ithe
i AIS

 Internal icontrols i are ithe isecurity i measures iused i to iprotect idata

24
3.3) Functions of an Accounting Information System
i i i i i i

Accounting iinformation isystems ihave ithree ibasic ifunctions:

 The ifirst ifunction iof ian iAIS iis ithe iefficient iand ieffective icollection iand istorage iof idata
iconcerning ian iorganization’s i financial iactivities, i including igetting ithe itransaction idata

ifrom isource idocuments, irecording ithe itransactions i in i journals, iand iposting idata i from

i journals ito iledgers.

 The isecond ifunction iof ian iAIS iis ito isupply iinformation iuseful ifor imaking idecisions,
i including iproducing i managerial ireports iand i financial istatements.

 The ithird ifunction iof ian iAIS iis ito imake isure icontrols iare iin iplace ito iaccurately irecord iand
iprocess idata.

3.4) Reliability of Accounting Information Systems

i i i i i

Because ian iAIS istores iand iprovides isuch ivaluable ibusiness iinformation, ireliability iis ivitally
i important. iFive i basic iprinciples i important ito iAIS ireliability:

 Security i- iAccess ito ithe isystem iand iits idata iis icontrolled iand ilimited ionly ito ithose
iauthorized.

 Confidentiality i- iThe iprotection iof isensitive iinformation ifrom iunauthorized idisclosure.

 Privacy i- iThe icollection, iuse, iand idisclosure iof ipersonal iinformation iabout icustomers iis
idone i in ian iappropriate i manner.

 Processing iintegrity i- iThe iaccurate, icomplete, iand itimely iprocessing iof idata idone iwith
iproper iauthorization.

 Availability i- iThe isystem iis iavailable ito imeet ioperational iand icontractual iobligations.

.i

25
3.5) Basic Subsystems in the Accounting Information System
i i i i i i i

 Expenditure icycle: iInvolves iactivities iof ibuying iand ipaying ifor igood ior iservices iused iby
ithe iorganization

 Production iCycle: iInvolves iactivities iconverting iraw imaterials iand ilabor iinto ifinished
igoods

 Human iresources/Payroll icycle: iInvolves iactivities iof ihiring iand ipaying iemployees
 Revenue iCycle: iInvolves iactivities iof iselling igoods ior iservices iand icollecting ipayment ifor
ithose isales i.

 Financing icycle i: iInvolves iactivities iof iobtaining inecessary ifunds ito irun ite iorganization i,
irepay icreditors iand idistribute iprofits ito iinvestors

26
 Chapter Four: i

Accounting Information System

i i

of
Modern Poly Industries Limited
i i i

27
4.1) Introduction
i

Accounting iInformation isystem iis ithe icollection, istorage iand iprocessing iof ifinancial iand
iaccounting idata iused i by i internal iusers ito ireport iinformation ito iinvestors, icreditors iand itax

iauthorities. iAn iaccounting i information isystem i is igenerally ia icomputer-based i method ifor itracking

iaccounting iactivity i in iconjunction iwith i information itechnology iresources. iModern ipoly iIndustries

i limited iBangladesh i is irecently iusing itwo isoftware ito imanage itheir iAccounting i information’s.

iThey iare:

 AIS i(Accounting iintegrated isoftware)

 SAP i
 Email

4.1.1 Flow of work and information between Sub departments

i i i i i i i i i

First iof iall, ito idiscuss iabout iaccounting iinformation isystem iof iMPIL iBangladesh iwe ineed ito iknow
ihow ieach i sub-department iof i Accounts iand i finance iare i interdependent iwith ieach iother iand

i information i flows i between ithese i sub-departments. i i

4.1.2 Work flow between Corporate Finance and Accounts Department

i i i i i i i i i

Corporate ifinance iand iAccounts idivision ihas ian iinteraction iand iinterdependency iamong ieach
iother. iAccounts ipayable i is ibasically iresponsible i for ichecking iall i expense i bills iand iconfirming i bill

ifor ithat ipayment. iBut iaccounts ipayable idoes i not ihave iany iauthority ito ipay i money idirectly ito iany

ivendor. iBecause ithis iresponsibility idriven i by iCorporate iFinance iteam. i After i having ipayment

iconfirmation i from iaccounts idivision iCorporate iFinance iexecutes ipayment itowards ithe isuppliers.

iThe ipayment i might ibe idone ithrough iBank iCheque, iEFTN iextra. i

Vendor iPayment iConfirmed Corporate iFinance ipays

iby iAccounts iDIvision iMoney ito ithe ivendors

Figure i7: iCorporate iFinance iand iaccounts ipayable

ii

28
4.1.3 Work flow between Business Planning and Accounts Department
i i i i i i i i i

The imain iresponsibility iof iBusiness iPlanning iis idoing icost ibenefit ianalysis iof idifferent ifinancial
iactivities. iThey igenerate ia ireport ibased ion i financial iperformance iof ieach i month. iBasically, iMPIL

iFinance iteam i make itheir i important idecision ibased ion ithis ireport. iTo iprepare ithis ireport iBusiness

iplanning idivision ineed ito icollect i information iwhich i is irelevant iwith idifferent iexpenditures iof

iMPIL. iAccounts iPayable iteam i basically iprovide iall ithis irelevant i information ito iBusiness iPlanning

iDivision. i As iBusiness iPlanning iDivision i is iresponsible i for ipreparing i monthly i budget ithat iis iwhy

ithey i need ito idiscuss iwith iother idepartments ion ithis i issue. i i

4.1.4 Work flow between Supply Chain management and Accounts Department
i i i i i i i i i
i

Supply iChain iManagement iDepartment ibasically igenerates iprocurement iorder ior iconducts iother
icontract iwith ithe i suppliers. iThat i is iwhy i Accounts i Department ineed ito icommunicate iwith iSupply

iChain i Management idepartment iduring iexecution iof iany iPayment. iSupply ichain i Management

ibasically i informs i Accounts iDepartment ithat ia ivendor ihas ithis iamount iof ipayment iorder iand ithat

ivendor iis i not isupposed ito iperform i more. iThey icommunicate ithis i information ithrough iEmail iand

iSAP. iAll ithe icontract idetails iare iavailable ion ithis itwo isoftware. i i i i i

Accounts iPayable
Supply iChain iDivision: i i iDivision: iGenerate

iGenerate iPurchase iorder i iPayment iand icross icheck

i
icontact idetail i

Purchase
order SAP i

and ivendor idetails

ERP

Figure i8 iWork iflow iof iAccounts idep. iAnd iSCM i

29
4.1.5 Work flow between Asset Management and Business Planning
i i i i i i i i i

The imain iresponsibility iof iAsset iManagement iDepartment iis ibasically ibeing icalculating imonthly
icapital iexpenditure iand ikeep i valuation iof ieach iasset. iThey ialso i fix idepreciation itype iand

idepreciation irates ifor ieach itypes iof iasset. iAt ithe iend iof ieach i month ithey igenerate ia ireport ibased ion

ithe ivaluation iof iall i fixed iand icurrent iasset iof iMPIL iBangladesh. iIn ithis icase i Asset imanagement

idivision iuse i AIP i(Accounting i integrated isoftware) ito igenerate iand irecord idata. iThen iBusiness

iPlanning idivision icollects ithis i information i from i AIS. iBusiness iPlanning iDivision iuse ithis

i information ito ianalyze ibenefit iof icapital iexpenditure

4.2) Relevant Software’s

i i

4.2.1) ISCMSi

Integrated iSupply ichain imanagement isoftware i(ISCMS) iis ithe isoftware itools ior imodules iused iin
iexecuting isupply ichain itransactions, i managing i supplier irelationships iand icontrolling iassociated

ibusiness iprocesses i in iModern iPoly iIndustries iLimited.

Functionality iin isuch isystems ican ioften ibe ibroad i– iit icommonly iincludes:

 Customer irequirement iprocessing

 Purchase iorder iprocessing
 Sales iand iDistribution
 Inventory imanagement
 Goods ireceipt iand iWarehouse imanagement
 Supplier iManagement/Sourcing

A irequirement iof imany iSCMS ioften iincludes iforecasting. iSuch itools ioften iattempt ito ibalance ithe
idisparity ibetween isupply iand idemand i by i improving ibusiness iprocesses iand iusing ialgorithms iand

iconsumption ianalysis ito ibetter iplan i future ineeds. iSCMS ialso ioften i includes i integration itechnology

ithat iallows iorganizations ito itrade ielectronically iwith isupply i chain ipartners.

Also itight iintegration iwith ithe iFinance isystem iis imust ifor imost iof ithe icompanies iwho iare iinto
iSupply iChain iManagement. iHence i most iof ithe isoftware isystems iavailable itoday iare i integrated

iwith ithe iFinance i- iAccounts iPayables, iAccounts iReceivables iand iGeneral iLedger. iThis i makes i it

ieasy ito imanage i book ikeeping i for ithe iorganisations iwith iease. i A itightly i integrated iPurchasing i &

iSales iprocess ienables ithe iorganizations ito ihandle itheir iday ito iday iactivities iwith i less ieffort.

30
4.2.2) AIS (Accounting integrated Software)
i i i i

Accounting iintegrated isoftware iis ia itype iof iapplication isoftware ithat irecords iand iprocesses
iaccounting itransactions iwithin i functional i modules isuch ias iaccounts ipayable, iaccounts ireceivable,

i journal, igeneral i ledger, ipayroll, iand itrial i balance. iIt ifunctions ias ian iaccounting i information isystem

i in iModern iPoly i industries i limited. iThe isoftware i is i developed i by ia ithird iparty i specially i for iModern

ipoly iIndustries iLimited. i

Central Information Collection

i i

Accounting iintegrated isoftware iof iModern ipoly iindustries ilimited icollect iinformation ifor ivarious
ipurposes i in ia i business. iMPIL ioften iuse ithis i system ito igather iand iorganize i financial iand iother

i information i from i multiple idepartments ior idivisions. iThis isystem iallows i for ithe ielectronic

itransference iof i information i from i many isources i into ia icentral i location iwhere iaccountants igather

iand iprocess ithis idata. i

Checks and Balances

i i

Accounting imanagers iand isupervisors iof iMPIL iuse itheir iAccounting iintegrated iSoftware isystem
ito iseparate itasks iand iensure icontrols iare i in iplace i for idifferent iaccounting i functions. i Accounts

ipayable, iaccounts ireceivable, ipayroll, idepartmental i financial idata, ifixed iassets iand ipurchasing

ieach iwork iunder iseparate imodules i in ian iadvanced iaccounting isystem iand idemand i individual

ihandling iprocesses iand iprocedures. iEach iof ithese i individual i modules i feed isummarized idata i into

ithe igeneral i ledger i but iallow i for isystem ichecks i and ibalances ialong ithe iway. iReports ican i be

igenerated i from i individual i modules ito iensure iaccuracy iof idata ibefore i being ipassed ion ito ia

icompany's igeneral i ledger.

4.2.3) EMAIL
i

Email iis ia icritical imeans iof icommunication iin ibusiness iinstitutions. iEvery iday iemails iare isent ifrom
iemployers ito iemployees, icustomers ito isuppliers iand i more—helping iall ithese igroups iof ipeople ito

ibe i in itouch.

The iimmediacy iwith iwhich iemails iget idelivered ifrom ione iplace ito ianother imakes iit ithe ibest imeans
iof icommunication. iMPIL iuses ia isoftware icalled iEMAIL iwith iwhich ithey icommunicate iWith

iemployees isave itime iand ican i have i immediate icommunication iand icollaboration iwith iemployees i in

iand iout iof ithe ioffice. i With iemails, idisseminating iand itransmitting iof i important iinformation

ibecomes ipossible, iallowing i immediate iresponses ito iany iarising i matter.

31
Through ithe iefficient ispread iof iinformation ifrom ione ilocality ito ianother, iemails iare iimportant iin
ithe i marketing iof i MPIL i business iproducts. iThe i fact ithat iemails iare ione iof ithe icheapest i means iof

isending i information i both i internally iand iexternally i of i iMPIL i ito ihelp i businesses icut icosts i incurred.

4.3 Internal Control through AIS

i i i i

The imain ipurpose iof iusing ian iorganized iAccounting isystem iis isetting iinternal icontrol. iModern
iPoly iIndustry i limited i has ibecome isuccessful ito iensure i internal icontrol iwithin itheir i business

ioperation. iConsidering iregular ioperation i it i is iclear ithat ieach idepartment iof iMPIL i is i interdependent

ion ieach iother. iIf iwe igo ithrough itheir ipayment iprocedure ithen iwe iwill i find ithat ione idepartment iwill

ido iall ipaperwork i for ivendor ipayment iand ianother idepartment iwill ipay ithe i money. iHere

isegregation iof iduty i has ialso ibeen iensured. i iIn iMPIL ione isingle idepartment icannot imake iany

idecision, ithey i need ito icommunicate iwith iother idepartments ito imake iany idecision. iThey iuse itheir

i information isystem ito icommunicate iwith ieach iother ias ia iresult ione idepartment iremains i informed

iabout iany i new idecision iof iother idepartment. i i i

MPIL iis icontinuously ispending imoney ito idevelop iand imaintain itheir iaccounting iinformation
isystem. iThis i following igraph ishows ithe iproportion iof iexpenditure ithat ihas i been igenerated ito

i manage iaccounting i information i system. iIn i2014 i 0.75% iof itotal icost iwas ispend i for iAIS ipurpose

iand i in i2016 ithe ipercentage iof iexpenditure i has i become i1.90%.

32
 Total iExpenditure iof iAIS i
2.00%
1.90%
1.80%

1.60%

1.40%
1.35%
1.20% 1.20%

1.00%

0.80%
0.75%
0.60%

0.40%

0.20%

0.00%
2014 2015 2016 2017

Figure i: iTotal iExpenditure iof iAIS

In iModern iPoly iIndustry ilimited ieach iactivity iis iconducted ithrough isoftware. iAs ia iresult, ihigher
iauthority ican i monitor ithe iwhole i business iat iany itime. iThe i higher iauthority ialways iremains

iupdated iregarding ion ithe iorganization iperformance.

33
4.4 SOWT Analysis of AIS
i i i i iiiii

Strength
Opportunities Weakeness Threats
1. iAdoption iof inew
1. iBring ithe iwhole iinformation isystem i
ibusiness iunder ian iOther iuncovered
iSystem i 1. iHigh imaintenance
iand iset iup icost i iarea. imight ichange
2. iControl ion ievery iIntegrated iwork iprocedure
1. iInformation isystem
iaspect iinformation ican ibe iused iin i
isystems i 2. iNeed ito 2. iOne iparticular
ifrequently iupdate iinformation isystem i
2. iEmployees ihave iskill ion iother
3. iReliability iof ithese
iInformation i iequal ichance ito
iinformation isystem.
idevelop
3. iTech iphobia iof imight ibe iobsolete
5. iHelps ito iavoid ierror iemployee iis iafter ia iparticular
i 3. iUse iof inew itime
iconsidered
iinformation isystem.
6. iHelps ito ido
ibudgeting iand 4. iEasy iaccess iof 3. iA isingle ilow ifall
ibusiness iall iinformation ias ia iin iinformation
iinformation isystem i ibarrier isystem i imight ibe ia
iPlanning i i i icompetitive
iadvantage. imight
7. iAssistance iin ihamper iwhole
iinternal iaudit i iorganization i i
iOperation
8. iMore icontrol ion
iemployee iperformance

34
 Chapter Five:
i

Findings, Recommendations & Conclusions

i i i

35
5.1) Summary of Findings
i i i

 MPIL iis iquite icapable iof isustaining ithe imaintenance iof iits iAccounting iInformation iSystem
ias i it i is ipresent iand ieven ideveloping i it i more i in i future.

 The idetailed iinformation iabout iAccounting iInformation iSystem iis inot igiven iin ithe iannual
ireport.

 Software iworks itoo islow i

 Software imay ihave isome ibugs ifor iwhich iData iEntry itakes iTime
 Insufficient iEmployee iin iAccounts iDepartment i i
 Low iBudget ifor i iinfrastructure iand imaintenance iof iits iAccounting isystem
 Less ifeature iin isoftware i

5.2) Recommendation
i

 MPIL ishould ispend imore ifor ithe idevelopment iof iits iIT iinfrastructure iand imaintenance iof
i its iAccounting isystem iwith i inauguration iof i latest iAccounting i information isystem

ienterprise iresource iplanning i(ERP).

 To ilower ithe irate iof ierrors iin itransaction iprocessing, icomplete iautomation iof iaccounting
iprocess ishould i be iensured.

 MPIL iis iquite icapable iof isustaining ithe imaintenance iof iits iAccounting iInformation iSystem
ias i it i is i in ipresent iand ieven ideveloping i it i more i in i future.

 Periodic itraining iprogram ishould ibe iarranged ifor ithe iemployees iwho iare iless iknowledge
iabout iAccounting iInformation iSystem iof ithe iorganization iand i less iproficient i in irunning

irelevant isoftware ior iapplication.

 Rules iof iBAS ishould ibe iapplied iin iAccounting iInformation isystems.
 Accounts idepartment icould iincrease iemployees ito iincrease iproductivity i i
 The iCompany iShould iuse imore ifeatures iof ithe isoftware ito isave itime imoney iand ilabor i

36
5.4) Conclusion
i

To isum iup, ithe iinternship ihas iimpact ia ilot iin ilearning. iIt ihelped ito iface ithe ireal ijob ienvironment
ipractically iand iprovided ia igenuine i idea ion i money irelated iactivities i in ia i manufacturing iCompany

iof iPOY i(Partially i Oriented iYarn) i & iDTY i(Drawn i Texturized iYarn) iproducts. iAll ithe iexperiences

iare iearned ithat icannot ibe i measure i by iany i scale, isuch ias; i how ito ifill i in ias ia igroup. iHowever, iin ithe

icorporate iculture ia iworker imay i need ito imanage ia i few iassignments iat ionce iand iwhich i is i in

igeneral. i i i

The iorganization iprovided ia ilot iof ilearning. iIt iwas ia igreat iexperience ito iwork iwith ithe iteam iof
iMPIL. iHope ifor iprosperity iof ithe icorporation. i i i

37
References
 Auditors iReports iof iMPIL- i2016.
 Various itypes iof ipublications iof iMPIL.
 http://www.modernpolybd.com/
 Office iDocuments.
 Officers iof ithe iMPIL, iKhatunganj iBranch, iChittagong

38
39