Submitted To

Dr. Md. Abdur Rahman Professor

Department of Accounting & Information SystemsUniversity of Chittagong

Chittagong.

Submitted ByMd. Al Faisal

Program: BBAClass Roll:4834ID: 07301127

Session: 2006-2007Dept. of AIS

University of Chittagong.

Submission date : September 12, 2012

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LETTER OF SUBMISSION

Date: 12 September, 2012.

Dr. Md. Abdur Rahman

Professor,Department of Accounting & Information Systems,

University of Chittagong.

Subject: Solicitation for acceptance of the Industrial Tour Report.

Dear Sir,

I have pleasure in forwarding my Industrial Tour report on T.K. Chemical

Complex Ltd. (T. K Paper Products LTD.) that have been assigned me to

prepare as the analytical requirement of my BBA (4 th Year) course under

the Department of Accounting & Information Systems, C.U. During

preparing my report, I have learnt many interesting things about the total

management system of industry. I have tried my level best to be

conclusive & terse while preparing the report. My intention was never

directed to undermine anyone concerned.

I sincerely hope that you would be kind enough to accept my tour report

for evaluation and thus oblige.

Sincerely yours;

Md. Al Faisal

ID: 07301127,

Class Roll: 4834.

Session: 2006-2007.

Department of Accounting & Information Systems,

University of Chittagong.

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PREFACE

The Industrial Tour is a program that is essential for gathering practical knowledge, because practical knowledge has no alternative. A perfect co-ordination between book knowledge and practice is of paramount importance in the context of the modern business world. The department of Accounting and Information Systems of University of Chittagong arranges ‘Industrial Tour Program’ .This program is very important to complete his/ her B.B.A. course.

As a student of the department of AIS I got the chance of industrial tour. I think that this helped me to know about the factory environment, production process, product quality etc directly.

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ACKNOWLEDGEMENT

I have the immense pleasure and satisfaction in presenting report, which is termination of my project works at T. K. Chemical Complex Ltd. (T.K. Paper Products Ltd.)

The success of this report depends on the contribution of many people, especially those who spare time to share their mindfully art of judging of merits and faults and have given valuable suggestions. From the very outset I would especially like to extend thank to my departmental guide honorable teacher Professor Dr. Md. Abdur Rahman, Department of Accounting & Information Systems, University of Chittagong, whose inspiration and consideration during the entire program made it possible to prepare this report.

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TABLE OF CONTENTS:

SL

NO.TOPICS PAGE NO.

1 INTRODUCTION 62 METHODOLOGY OF THE STUDY 73 OBJECTIVES OF THE STUDY 84 LIMITATIONS OF THE STUDY 95 T. K CHEMICAL COMPLEX AT A

GLANCE10

6 GENERAL INFORMATION OF PAPER UNIT

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7 MANAGEMENT STRUCTURE OF THE ORGANIZATION

12

8 CAPITAL INTIAL 139 ANNUAL SALE 13

10 ANNUAL PROFIT 1311 ORGANIZATION OBJECTIVES OF

PAPER15

12 BUDGETARY SYSTEM 1613 HRM PRACTICE 1714 EVALUTION 1815 TRANSPORTAION 1816 ADVERTISMENT 1817 SALES TARGET 1818 DUTIES AND TAXES 1819 HURDLE FACING IN MARKETING 1820 MANAGERIAL PRACTICES 2021 FINANCIAL ANALYSIS 2222 COST BENEFIT ANALYSIS 2423 BREAK EVEN ANALYSIS 2524 RECOMMENDATION 2625 CONCLUSION 2726 REFERENCES 28

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Introduction

The Term “Industrial Tour” refers to a report on some industry visiting them physically, observing their process of production/ operation, and gathering relevant data from the management personnel, analyzing & evaluating the findings & drawing comments on the performance of the sample enterprises. As a part of 4th year BBA Program, I have visited T.K Chemical complex Ltd.(T.K.Paper Products Ltd) & reported on the performance of the company.

Performance means accomplishment of an expected course of action. Management makes efforts to steer the organization towards destination.

Evaluation is the process of identifying the financial strengths and weakness of the company.

We have emphasized the promotional and marketing activities of this company.

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METHODOLOGY OF THE STUDY

This report is prepared on the basis of the practical experience

gained during the period of industrial tour. The information has

been collected from primary sources as well as secondary

sources. I prepared a questionnaire submitted to the management

of the company, which helped a lot to get much quantitative and

qualitative data.

Primary Sources:

1. Group discussion with company’s management

official’s ranks from low to top level.

2. Questionnaire submitted to the management of the

company.

3. Primary information related to distribution has been

colleted from the sales department of the company.

4. Practical experience gained by visiting the factory and

the related departments.

Secondary Sources:1. Secondary information has been collected from the

literature; articles, journals, paper and different

textbooks are also used when textbook related data is

required to quote.

2. Handbill provided by the company while making

industrial tour.

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OBJECTIVES OF THE STUDY

The main objective of the study is to evaluate the management,

production, marketing, accounting, financial principles as well as overall

performance of the T.K. Chemical Complex Ltd. More specifically, the

study covers the following objectives.

To know about the company profile;

To have an idea about their purchase policy;

To attain information about their marketing policies and practices;

To gain knowledge about their quality policy and assess their

conformance;

To gather information about their financial performance;

To measure their productivity;

To evaluate the role of ‘T.K. Chemical Complex Ltd’ in the creation

of employment

To examine the shortcomings and suggest possible guidelines

necessary to overcome them.

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LIMITATION OF THE STUDY

I have just tried my best to collect the maximum information from T.K.

Chemical Complex Ltd. But this report is not free from limitation. While

preparing the report, I faced some problems or limitations, which are

given below:

1. The industrial tour was only for one day that is not enough to

make a study successful.

2. Lack of adequate time also caused some constraints to the

study.

3. Some data could not be collected for the confidentiality and

official secrecy of the company.

4. It is very difficult to discuss marketing practices of the

company separately.

5. Our personal limitation, because we are immature in

business life.

6. I, therefore, hope that the study will be evaluated subject to

the recognition of the above-mentioned shortcomings.

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T. K. CHEMICAL COMPLEX AT A GLANCE

T. K. CHEMICAL COMPLEX LTD.

83, Khatunganj, Chittagong, Bangladesh.(88-031) 636 245, 618 095-6, 617 837, 620 984, 621 483(88-031) 636 381, 631 583tkg@globalctg.net, tkbhaban@inetbd.com, kalim_7056@hotmil.com

Management Mr. M. A. Tayab, ChairmanMr. M.A. Kalam, Managing DirectorGroup Captain S.M. Kalim Ullah, psc (Retd.) General Manger (CCIFB Member)

Company Status Private Limited Company

Number of Employee

5000

Nature of Business

Commodity Trading, Manufacturing and Marketing of Consumer& industrial products like Edible Oils & Fats, Steel Galvanizing,Steel cold rolling, LP Gas Cylinder, Steel Drums & PlasticContainers, Paper, Cement Bags, Particle Board, Finished Leather,Tea Plantation & Shipping Services.

Background T.K. Group began its journey in 1972 in commodity trading. The entrepreneur sprit of The founder's helped the business growand new ventures were launched in manufacturing & marketingof consumer & industrial products. Over the years the grouphas emerged as one of the leading industrial group inBangladesh with core strengths in edible oils & fats and alsohaving successfully diversified into other business categorieslike Steel Galvanizing, Steel Cold Rolling, Paper, Cement Bags,Particle Board, Finished Leather, Tea Plantation, etc.

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Section A

General Information of Paper unit

1. Year of Establishment 1993.

2. Commencement of Production date 1996.

3. Management structure & the organization are the following.

4. Products of the Unit: Various kinds of papers including Computers grade, Printing grade, Writing grade & Packaging grade etc. They don’t produce any news print papers and also tissue papers they will produce it in future.

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5. Management Structure of the Organization

General Manager

Advisor

Director Operation

Director Marketing

GMAccounts

GMFinance

AGM

Manager

AssistantManager

Senior Officer

DGM

Officer

Assistant Manager

Manager

AGM

DGM

Officer

Senior Officer

Manager

AGM

DGM

Manager

Senior Officer

Officer

DGM

AGM

Manager

Manager

Officer

Senior Officer

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6.Capital: Initial Capital 50 crores (App). Present fund of capital 400 crores (App).

7.Annual sales:

Year Annual Sales (Taka)2006 122 Crores (App)2007 146 Crores (App)2008 173 Crores (App)2009 198 Crores (App)2010 233 Crores(App)2011 253 Crores(App)

8. Annual Profit of the company:

Year Annual profit (Taka)2006 4 Chores 61 Lakhs (app)2007 4 Chores 95 Lakhs (app)2008 5 Chores 97 Lakhs (app)2009 6 Chores 93 Lakhs (app)2010 7 Crores 23 Lakhs (app)2011 7Crores 50 Lakhs (app)

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Section B

1. Books of Account: Usually every books are kept such as trial balance, subsidiary ledger, Bank reconciliation etc. For modernization they use computers software such as tally, sis care etc.

2. Flow of transaction: Flow of transaction is of two types.

a. Collection.b. Payment.

Collection process:

Payment Process:

3. Accounts Statements: They use various accounting statements such as,

a. Cash flow statement.b. Balance sheet.c. Income statement.d. Retained earnings statement.e. Ledger.F. Bank reconciliation.g. MIS.

4. Who prepares the Accounting statement:

Data posting ----------------------- Senior officer.Check the data posting-------------Assistant Manager.

Prepare all information------------ Manager & deputy manager. 5. Destination:

To advisor one copy.Director of operation one copy.

Managing director one copy.Chairman one copy.

Sales Finance Accounts

Accounts Finance Customer

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6.Uses of the statement: There are many uses accounting statement Tax & VAT purpose. Internal Audit. Making group financial position. MIS for group.

Bank & others financial organization.

Organization objective of paper Unit

The company has a lot of minor and major objectives out of which few

are mentioned below:

1. To provide standard paper.

2. To capture a good market.

3. To export the product in future.

4. To earn a handsome profit.

5. To market the rod at an affordable cost.

6. To do different social activities.

7. Overall to provide the best service.

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Part C

Budgetary system of the organization.

Types of Budget:

Flexible Budget:

A flexible budget is a budget which is designed to change in accordance

with the level of activity actually attained.

Functional Budget:

Functional budget relate to the various functions of a firm. The following

are the functional budgets commonly found:-

a)Cash Budget: It is a forecast of cash position for a period.Its object is

to indicate the flow of funds and their requirements. It takes into account

the amount received from sales – cash sales and payments made by credit

customers and the expenditure to be incurred in cash - both capital and

revenue.

b) Sales Budget:The sales budget is a forecast of total sales which may

be expressed in monetary and quantitative terms.

c) Purchase Budget: The purchase budget represents the purchases to be

made during the budget period

d) Production Budget: Production budget is drawn up after taking into

account the expected opening stock, the estimated sales and the desired

closing stock of each article.

e) Capital Expenditure Budget: Capital expenditure budget is closely

connected with the production budget which will show how much

machine capacity is needed and when.

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HRM Practice: Recruiting Policy: Internal Recruiting policy is followed by the Mgt. They never advertise any vacancy either on newspaper or internet or any other types of media. This practice is done

To avoid extra burden of mgt task To reduce cost relating to recruitment

Recruiting Nature: Generally Co. recruits

Skilled Semi Skilled Unskilled Manpower

Working Hour Practice: HRM follows three working Shift in a day consisting 8 hours a shift.

Salary Structure: HRM follows labor laws & BEPZA rules for salary structure.

Overtime : Overtime is paid twice over the normal wage rate

Fringe benefit: HRM offers fringe benefits covering

Yearly two Eid bonus Medical Allowance Transportation Allowance.

Working Environment: Working environment of the factory is nice. Production layout & office layout is scientific.

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Evaluation:

Productivity measure: It has two types of processing system

Manual system Automated System

Manual System: It has lower productivity & high idle time in system failure but offer large employment opportunity.

Automated system: It has high productivity & high maintenance cost and offer lower employment opportunity.

HRM practice: HR policy is lucrative & fruitful for the worker. We see nice relationship between worker & superior. Line of staff & job responsibility is congenial to the operation Process.

Safety Measure: As far our observation safety measure is not adequate. We see some worker works without wearing musk, gloves. We did not see any fire extinguisher inside the factory for instant protect against fire.

Transportation

Transportation is must for product distribution. As transportation barrier is an important matter in product distribution , so transportation should be well managed. And we saw that the factory has well transportation system. The company has an own transport department. The air transportation use only for urgency met the customer demand. Sometimes, this air transportation is used for emergency treatment of any top-level executive or their family members.

Advertisement

This company does not follow any advertisement strategy for creating market demand. T. K. Chemical Complex Ltd. always tries to maintain the product quality. This is their only promotional activity for attracting for native buyers.

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Sales Target

The company has sales target only for national market. But T. K.

Chemical complex Ltd. does not follow the research and development

program for developing their sales volume or product quality.

Duties and Taxes

The company is a regular contributor to the national exchequer. No tax is

due by any one of the units as per computation certified under rules 64 A.

Hurdles Facing in MarketingThe company is facing some common problems in its marketing

activities. Transportation in rural areas is a major problem to expand its

market. Another problem is its marketing force. T.K. Chemical Complex

Ltd. also faces a competitive marketing environment that makes it be

aware of its pricing, product quality, advertising techniques etc.

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Management Practice:

The key points of management practices of T.K. Chemical Complex Ltd.

Are discussed below:

Mission:

The main mission or purpose of T.K. Chemical Complex Ltd. is to create or increase profit as a production oriented company.

Goals and Objectives:

T.K. Chemical Complex Ltd. considers the increase of production as a

factor of setting organizational goals and objectives.

Policies and Procedures:

T.K. Chemical Complex Ltd. has the established rules, procedures,

policies or strategies. But they could not provide that for their business

secrecy.

Planning Process:

T.K. Chemical Complex Ltd. also has a strong planning process in which

the authority has to formulate these plans. Most of the time top-level

management makes decisions.

Specialization and Departmentalization:This company follows work specialization for every employee. Work specialization refers to every employees should specialized in the particular field. T.K. Chemical Complex Ltd. does not follow generalization. And the company generally follows the product departmentalization

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Decision Making:

Decision-making may be either centralized or decentralized. The decision

making process of that company is centralized by the authority. The

lower level managers cannot participate in the decision-making.

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FINANCIAL ANALYSIS:

Financial analysis involves analysis about different entries of balance

sheet and income statement by which the financial strength and weakness

of a firm can trace out. One of the widely used financial analyses is ratio

analysis.

Capital and Capital Structure:

The main source of capital is the directors’ investment and the local bank

in the company. The capital structure normally follow paid up capital.

Since the company always takes the order from native buyer so that the

source of capital must be the native investment.

Market Share:

T.K. Chemical Complex Ltd. does not enter share market. Therefore the

company has no market share. It is a private limited business entity.

Short term and long term Financing:

Most of the firm use short term financing to meet temporarily short falls,

while permanent capital (long term dept and equity) is used to meet long-

term capital requirement. There are four basic source of short term

financing.

Account payable

Bank loan

Commercial paper

Accruals

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T.K. CHEMICAL COMPLEX LTD. provides short-term finance from

company’s own sources. Long term finance provide by directors and

banks. The company has no problems of internal financing.

Financial Risk:

Since the company’s main source of capital is the native investment, so

there is no financial risk in case of financial investment. There are 10

persons in the organization who are engaged in financial management

under the direct supervision of financial manager.

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COST BENEFIT ANALYSIS:

CBA is a tool that allows the analyst to mimic the welfare optimizing

behavior of the market. Although complexities arise when costs and

benefits are being measured and corrected, CBA is a simple tool with

numerous uses and applications, especially in the environmental

assessment sphere. Its use increases accountability and consistency in

decision-making.

Applications Of Cost Benefit Analysis:

The projects may be public or private, and the analysis is typically used to

inform public decision makers. This type of CBA is the form typically

used in EIAs. It can be used to:

1. Evaluate or rank the feasibility of projects. Decision makers to

determine whether a single activity or project should be undertaken, or to

rank competing projects or policies use CBA.

2. Analyze the effect of regulation. A typical purpose of new public regulations is to reduce or eliminate specified risks to environmental quality.

3. Justify equipment and technology investment. CBA can be used to

determine whether a new investment in equipment or technology for

government is an efficient use of the taxpayers’ money.

4. Determine the most effective way to cut costs, especially in capital

planning: CBA provides a simple method to implement cost-effective

capital planning.

5. Determine the relative benefits of outsourcing and leasing. A traditional function of the state is the provision of public goods.

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However, many of the goods and services provided by the state have a

‘private goods’ component. Where this is the case, outsourcing part of a

project may reduce costs and improve quality. CBA can be used to

identify such opportunities.

THE BREAK-EVEN ANALYSIS:

The break-even analysis is the most widely known in organization. For

this reason, many use the two terms interchangeably. Break-even analysis

is specific way of presenting and studying the inter-relationship between

costs, volume and profits. It provides information to management in most

lucid and precise manner. It is an effective and efficient financial

reporting system.

The break-even analysis establishes a relationship between revenues and

costs with respect to volume it indicates the level of sales at which cost

and revenues are in equilibrium. The equilibrium point is commonly

known as the break-even point. The break-even point is that point of sales

volume at which total revenue is equal to total costs. It is a no-profit, no-

loss point.

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On the basis of findings of the study, I would like to recommend the

followings:

1. T.K. CHEMICAL COMPLEX LTD. is supposed to arrange

some training program to improve the efficiency of the helpers &

operators.

2. Company is capable of arrange half yearly get together to improve

the relationship between the Management & workers.

3. Customer service can be improved. For this purpose management

can arrange yearly get together with the consumers (Buyers).

4. The Company must have to appoint at least medium educated &

Skill person.

5. The Company can develop the advertising promotion.

6. The salary system should be well structured regarding the job

responsibilities.

During the recruitment, the board should consider the academic discipline

of the candidates for the proposed positions.

Recommendations:

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Management is a continuous process and whenever the continuity

interrupts, mismanagement is must to occur. And in most of the cases

management skill deficiency stand behind it. So the process requires a

continuous reviewing for developing skills of the managers. But in our

country no study has been made on this regard. The educational institutes

should be more research oriented. So they should involve with the related

organizations so that they can provide more practical knowledge. And

also the organizations should take initiatives to make a lesson with the

faculties so that they may up-to-date their knowledge.

From the previous discussion it is apparent that the overall personal right

of the workers and employees in the T. K. Chemical Complex Ltd. is

suitable. This is mostly possible due to the foreign buyers’ compliances.

However, this program has helped me to learn a lot of practical

knowledge. Finally, I would like to render gratitude to my respected

teacher and supervisor Professor Dr. Md. Abdur Rahman Department

of Accounting & Information Systems, University of Chittagong, for

arranging this program.

CONCLUSION

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REFERENCES:

Profile of T. K. Chemical Complex Ltd.

Standard questioners

Annual report of T. K. Chemical Complex Ltd.

Human Resource – Key Factor:

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