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General Accounting & Financial
System
of
Dekko Accessories Limited
Internship Report
On
General Accounting & Financial system
of
Dekko Accessories Limited
Submitted To
Ms. Rubina Afroze
Senior Lecturer,
Department of Business Administration
ASA University Bangladesh.
Submitted By
Md. Shumon Iftikher ID: 103-12-0030.
BBA, 11th
Batch (Major in Finance)
Course Code: BUS-499
Department of Business Administration
ASA University Bangladesh.
Date of Submission 25th August, 2014
25th
August, 2014
Ms. Rubina Afroze
Senior Lecturer,
Department of Business Administration
ASA University Bangladesh.
Subject: Submission of the Internship Report.
Dear Madam,
I am very happy to submit my internship report on “General Accounting & Financial system of Dekko
Accessories Limited” which is an essential requirement for the completion of BBA Program. This report
is the result of the Internship Program that I have conducted in Dekko Accessories Limited at Dhanmondi
Branch from 15th May, 2014 to 15
th August, 2014. I truly believe that this report will satisfy your
requirements and expectations.
Working in Dekko Accessories Limited was an inspiring experience for me. I believe that the knowledge
and the experience I gathered will facilitate me a lot in my future career life. With my limited knowledge,
I have tried my best to prepare the report worthwhile.
May I, therefore, wish and hope that you would be gracious enough to accept my effort and oblige
thereby.
Yours Sincerely,
Md. Shumon Iftikher
ID: 103-12-0030.
BBA, 11th
Batch (Major in Finance)
Course Code: BUS-499
Department of Business Administration
ASA University Bangladesh.
Student’s Declaration
I am Md. Shumon Iftikher hereby declare that the work presented in this report titled “General
Accounting & Financial system of Dekko Accessories Limited” has been carried out by me and has
not been previously submitted to any other University or organization for an academic
qualification, certificate, diploma, or degree.
-----------------------------------
Md. Shumon Iftikher
ID: 103-12-0030.
BBA, 11th
Batch (Major in Finance)
Course Code: BUS-499
Department of Business Administration
ASA University Bangladesh.
Supervisor’s Certification
This is to certify that the Thesis Report titled “General Accounting & Financial system of Dekko
Accessories Limited” for the award of Bachelor degree in business administration from ASA
University Bangladesh, Dhaka, has been carried out by Md. Shumon Iftikher bearing ID: 103-12-
0030 under my supervision and guidance. The report embodies result of original work and
studies carried out by the student himself and the contents of the report do not form the basis for
award of any other degree to the candidate or to anybody else.
----------------------------------
Ms. Rubina Afroze
Senior Lecturer
Department of Business Administration
ASA University Bangladesh.
Page No Acknowledgement VIII Executive Summary IX
Chapter 1: Introduction 1.1 Origin of the Report
1.2 Objective of the Report
1.3 Scope of the Report
1.4 Limitation
2
2
3
3
Chapter 2: Overview of the Company 2.1 Historical Background of Dekko Accessories Ltd
2.2 Objective of the Company
2.3 Factory Size
2.4 Corporate Office
2.5 Products & Services
2.6 The Bank of transaction
2.7 Major Customers
2.8 Strengths
2.9 Weaknesses
2.10 Opportunities
2.11Threats
2.12 Organizational Structure
6
7
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9
9
10
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Chapter 3: Methodology 3.1 Study Design
3.2 Study Place
3.3 Time period of making the report
3.4 Data collection Technique
3.5 Data processing and Analysis Techniques
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16
Chapter 4: Project Findings 4.1 Accounting Principles & Policies Dekko Accessories Ltd
4.1.1 Basis of Accounting
4.1.2 Significant Accounting Policies
4.2 Category of Financial Transaction Dekko Accessories Ltd
4.2.1 Category of Financial Transaction
4.2.2 Receipts
4.2.3 Payments
4.2.4 Contra
4.2.5 Journal Voucher
4.3 Financial Management & Control Dekko Accessories Ltd
4.3.1 General
4.3.2 Custody of the Fund
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23
24
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25
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25
Table of Contents
4.3.3 Opening & Closing of Bank Account
4.3.4 Certification and Approval of Payment
4.3.5 Petty Cash
4.3.6 Petty cash Advances
4.4 Maintenance of Accounts on Dekko Accessories Ltd
4.4.1 General
4.4.2 Responsibility
4.4.3 Presentation of Financial Statements
4.4.4 Contents of Financial Statements
4.4.5 Books & Chart of Accounts
4.5 Letter of Credit
4.5.1 Features
4.5.2 Operations supported on LC
4.5.3 Processing Commissions and Charges
4.6 Financial Ratio Analysis of DAL
4.6.1 Liquidity Ratio
4.6.2 Activity Ratio
4.6.3 Profitability Ratios
25
27
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28
28
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28
28
29
29
30
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31
31
32
32
35
36
Chapter 5: Discussion on findings 5.1 Discussion on findings 42
Chapter 6: Conclusion Conclusion 44
Chapter 7: Recommendations 7.1 Recommendations 46
Bibliography & Appendix Bibliography 48
Appendix 49
Acknowledgement
The report titled as “General Accounting & Financial system of Dekko Accessories Limited” has
been prepared to fulfill the requirements of BBA degree. I am very much fortunate that I have received
sincere guidance, supervision and co-operation from various respected people while preparing this report.
Many people helped me to prepare this report. First of all I would like to thank my academic supervisor of
the Internship Program Rubina Afroze, Senior Lecture, ASA University Bangladesh for giving
me the opportunity to prepare this report. Without his guidance, advice and assistance, this report would
not be a comprehensive one.
Then I would profusely like to express my gratitude to all the people from Dekko Accessories Limited of
Dhanmondi Branch who has always been kind enough to answer my queries despite their extremely
demanding work. I would like to express my gratitude to Md. Arifur Rahaman, Sr. Manager (Accounts &
Finance) of Dekko Accessories Limited for giving me the opportunity to complete my internship in such
a reputed organization.
My peers and colleagues at the organization had also been very helpful; and they made my internship a
more enjoyable and eventful one. I would like to specially thank Syed Akhtar Jamal, Director, Dekko
Accessories Ltd. for giving me the internship opportunity.
Executive Summary
As a student of business administration, analyzing today‟s business world is very crucial to observe in this
complex situation. It is necessary to go through all fields of knowledge, both theoretical and practical.
After passing four years BBA program, I was sent out to have practical knowledge in business life as a
part of my academic program. An internship program is organized to give me an opportunity for
enhancing my capabilities. My internship topic is “General Accounting & Financial system of Dekko
Accessories Limited”. I have tried to highlight the accounting and budgetary control system of Dekko
Accessories Limited. The report investigates the accounting and budgetary control system of Dekko
Accessories Ltd. It also identifies general financial operation of DAl, at Dhanmondi Branch. Dekko
Accessories Limited is a successful reputed organization of our country. DAL follows all the rules and
regulation of Bangladesh Govt. scheduled for a privet business organization. The function of the company
is to manufacture and export RMG accessories internationally. RMG is one of the major sectors that have
highest contribution in foreign earnings in our country. To get succeed, they need to be able to process
data and use information effectively. So in my report I describe all the information‟s that how they are
keeping their accounting information‟s, the budgetary system of them. Strategies they are following to
implement production, distribution, management, marketing, and HR management operations are also
discussed in the report. SWOT analysis of DAL and their competitors are described in the report which
shows that DAL has greater opportunity to expand their market globally. Some financial analysis of
data‟s also representing the financial condition of the organization in this report. I have tried to follow the
right methodology for preparing this report. In the case study of Dekko Accessories Ltd. effort has been
given to disclose about organization‟s system and procedure step by step. Finally, conclusion and findings
are also included in the report.
1.1 ORIGIN OF THE REPORT
Internship Program of ASA University Bangladesh is a Post-Graduation requirement for the BBA
students. This study is a partial requirement of the Internship program of BBA curriculum at the ASA
University Bangladesh. The main purpose of internship is to get the student exposed to the job world.
Being an intern the main challenge was to translate the theoretical concepts into real life experience.
The internship program and the study have following purposes:
To get and organize detail knowledge on the job responsibility.
To experience the real business world.
To compare the real scenario with the lessons learned in ASA University Bangladesh.
To fulfill the requirement of BBA Program.
This report is the result of three months long internship program conducted in Dekko Accessories
Limited and is prepared as a requirement for the completion of the BBA program of ASA University
Bangladesh. As a result I need to submit this report based on the “General Accounting & Financial
system of Dekko Accessories Limited”. This report also includes information on the products and
services of Dekko Accessories Limited, the overview of the organization and also facilities they offer to
satisfy their employees.
1.2 Objective of the report
The objective of the report can be viewed in two forms:
General Objective
Specific Objective
General Objective:
This internship report is prepared primarily to fulfill the Bachelor of Business Administration (B.B.A)
degree requirement under the Faculty of ASA Business School, ASA University.
Specific Objective:
To have an overview of Dekko Accessories ltd.
To analyze the strength and weakness of the organization.
To know about the financial management of Dekko.
To prepare this report the operation of Dekko Accessories ltd. and its global policy for keeping
accounting records. This report fully focused to prepare a guideline to keep record accounting
data to smoothen the overall operation.
Despite this topic there are many sectors for working and analysis, like:
Financial performance of Dekko
Analysis the annual report of 2011-12 & 2012-13
An overview of Dekko Accessories Limited.
1.3 Scope of the Report
The main intention of the study is see the accounting & financial system of the company. Find
out what is their strengths, weaknesses, opportunities, threats & what should they have to do to reduce
their weaknesses & threats.
As I was assigned to the Dekko Accessories Limited, Dhanmondi Branch, there is enough scope of the
study as it is the head office. The report covers the topic “General Accounting & Financial system of
Dekko Accessories Limited”. To prepare this report the operation of Dekko Accessories ltd. and its
global policy for keeping accounting records. This report fully focused to prepare a guideline to keep
record accounting data to smoothen the overall operation.
Despite this topic there are many sectors for working and analysis, like:
An overview of Dekko Accessories Limited
Financial performance of Dekko
1.4 Limitation
Although I have obtained whole hearted co-operation from all levels of personnel of Dekko Accessories
Limited, but on the way of my study I have faced the following obstacles that may be termed as the
limitations.
Lack of sufficient hard copy documents provided by the company.
The confidential nature of information because of the company‟s policy.
Sufficient publications, facts, figure regarding accessories industries in Bangladesh is not
available.
Very little research has been undertaken on Dekko Accessories Limited.
Restriction of higher management to disclose any financial activities related internal data.
Due to time constraints a good portion of the study remains may un noticed.
All employees are busy in their respective job.
Three months is not enough for study in the field of total systematic
accounting, budgeting and costing policy and procedure.
Dekko Accessories Ltd. is belongs to Dekko Group having businesses concentration in garments,
accessories, food, distribution, publication, paint and real estate sector. The Group has 2 sister
concern in accessories sector. All the concern produced world class accessories product.
Garment accessories units performed as backward linkage of RMG units of the group. These two
accessories concern supports other different RMG concerns of the group. Rests of the concerns
of the Group are engaging in other different sector of business.
2.1 Historical Background of Dekko Accessories Ltd
Dekko Accessories Limited is actually a success story of a sole-person that Mr. M. Shahadat
Hossain Kiron has proved himself as a successful entrepreneur of independent Bangladesh. He
started his business in the garments sector in 1983 and in 1995 when he was the owner of six
garments factories then he found that there is no reliable garments backward linkage industry in
Bangladesh. Then he established Dekko Accessories Ltd. with a small capacity. He also realizes
that 30% of total production capacity of Dekko Accessories may be consumed by his own
garments factories. Those also inspire him to establish Dekko Accessories.
Dekko has all the attributes that made her one of leading manufacturer, which stretches up to 16
years. Dekko, which entered into business with a small capacity of production in 1995, today,
has become one of the leading garments accessories manufacturers in Bangladesh. In 1995, it
started with 3 label machines, one polybag making machine and 8 button manufacturing
machines. In the next decades, the company made major growths and expansions in production
and marketing.
Label Unit
2.2 OBJECTIVE OF THE COMPANY
To get acquaintance with quality product, competitive price and in time delivery.
Vision:
Influence the market and focus as a leader in garments accessories sector in Bangladesh.
Mission:
Dekko Accessories Ltd. aims to achieve its vision through being number „one‟ not only in terms
of sale but also in quality garments accessories production and supply.
2.3 Factory Size
Total factory area is about 1,10,835 square ft.( 3.950 Acres) . About 750 employees are employed
by the company including factory workers, sales representatives and company personnel's.
Factory Location: Hemayetpur, Savar, Dhaka.
Building structure:
One 6 storied building: I. Grand Floor – Store, CD- 74 machine
room, Button ( Polish )
II. 1st Floor – PPI, Design room,
III. 2nd
Floor – Poly
IV. 3rd
Floor – Belt
V. 4th
Floor – Belt
VI. 5th
Floor – Screen Print
VII. Top – Open roof Top, reserve Fire water
One 3 storied building
1. Grand Floor – Button ( Turning, Polish, Casting, office )
2. 1st Floor – Button ( Turning & Packing ), PPI, Office & conference room,
PVC (paper cutting), QA Lab, QA office
3. 2nd
Floor – PL & HTL
4. Top –PVC, Female Prayer room, Open roof Top
One 2 storied building
1. Grand Floor – Woven Label, yarn store, general store, Audit office
2. 1st Floor – Woven Label, woven label maintenance room, Design room, Label
Office room.
CD 74
One 3 storied building
1. Grand Floor – Maintenance room, Generator, Workshop
2. 1st Floor – Female Dining, Male Prayer room, Officer‟s Dining, Ansar Dormitory
3. 2nd Floor – Male Dining, HR-Admin & Compliance room, Sample room, kitchen
4. Top – Canteen & Open roof Top
Medical building
1. Grand Floor – Free / Chemical
2. 1st Floor – Medical room, Childcare room
3. Top – Open roof Top
Shades 3
1. Shade one – General store
2. Shade two – Finishing Goods room, cut
3. Shade three – Injection molding room
4. Shade four – Wastage area
Power station: 815 KVA
Generator: 02 (1125 KVA & 800 KVA) with canopy.
Gas generator – 1125 KVA
Diesel generator – 800KVA
The said generator installed as per Bangladesh Power Development Board-PDB and Fire
Service Civil Defense Authority guide line.
Power distribution board:
MDB= 22 ,
SDB=61 with fully automated switch gear.
Emergency Power off switch : installed each floor with SDB & MD
Water preserver: 60,000 Gallon / 218400 Liter reserve tank in top floor (Roof Top).
Earth Conductor :30
Fire Safety team strength:
Total manpower in (Dekko) : 907
DAL Officer : 112
DAL Worker : 795
Medical officer: 01 (Registered Doctor-Full Time)
Paper Print Label Button
Medical Assistant: 01 (Registered Nurse-Full time)
Care taker-Day care center:01(Trained)
Fire safety officer: 01
Fire Fighter: 143 (Trained by Bangladesh Fire
Service & Civil Defense)
Rescuer : 95
First Aider: 50
2.4 Corporate Office
Suvastu Zenim Plaza.
H# 37, R# 16 (Old-27) Dhanmondi, Dhaka-1209, Bangladesh.
Phone: 9130904, 9130974 & 9130955 Fax: 880-2-8128055.
2.5 PRODUCTS AND SERVICES
Button, Poly Propylene, Poly Ethylene, BOPP, Polyester Resin, Cotton & Polyester Yarn, Paper
Boards, PVC Sheets, Belt.
2.6 The Bank of transaction
Sonali Bank,
City Bank,
Markentile Bank,
HSBC
2.7 Major Customers
Wall-Mart,
Tesco,
Peacocks UK,
Van-Husen,
OBSL etc.
2.8 Strengths
1. Wider product mix.
2. Initial move advantage.
3. Above average quality level.
4. Immense reserve of fund.
5. Good competitive skills.
6. An acknowledged market leader.
7. Cost advantage.
8. Better advertising campaigns.
9. Better manufacturing capability.
2.9 Weaknesses
1. Relatively expensive.
2. Inconsistent delivery.
3. Interrupted material flow and healthy supply chain.
4. Lack of sense of belongingness and motivation among employees.
5. Average collection period is around 90 days.
6. Absence of system for measurement & control.
7. Absence of scale of economy.
8. Large centralized organization structure.
9. Tendency to shift responsibilities to others.
10. Inability to react quickly in accordance to the market.
11. Deals with price sensitive products.
2.10 Opportunities
1. Huge unpenetrated market.
2. New product/ technology development.
3. Scope of more nomination.
4. Establishment of high quality image.
5. ISO certification.
6. Establishment of proper supply chain plan.
7. Alternate sources for raw materials can be explored.
8. Possibility of any other backward linkage or acquisition can be explored.
9. Strong scopes to become global.
10. Utilizing deal outlets efficiently by diversifying into related products like Composite
Knit Project, Textile Project etc.
2.11 Threats
1. Legal issue with customs.
2. Renewal of bond license uncertain.
3. Bank guarantee and indemnity blocked.
4. Uncertainty linked with Neo- Global scenario after 2005.
5. New entrants with strong political support and with third generation. Technologies are
coming with diversified product range.
6. Entry of low-cost foreign products.
7. Growing bargaining power of customers or suppliers.
2.12 Organizational Structure
The Organizational Structure is headed by Managing Director and the lowest level Occupied by
distributors sales representatives.
Administration Accounts
&
Finance
MIS
GM
Executive
Front Desk
Executive
Sales & Marketing
GM GM GM
Asst. Manager Asst. Manager Asst. Manager
Sr. Executive Sr. Executive Sr. Executive
Executive Executive Executive
Jr. Executive Jr. Executive Jr. Executive
Commercial
Manager
Sr. Executive
Executive
Store
Sr. Executive
Internal Audit Sr. Executive Executive
Executive
Manager
Manager
Sr. Executive
Executive
Jr. Executive
Director
Sr. Executive
3.1 Study Design
This is an explanatory research. The data and the information are summarized according to the
concepts of corporate strategy, ethics and business policy, tables, charts and statistical analysis
graphs are used make the analyses clean and more understandable. Critical assessment in draw
from the data and information are:
Primary Source of Information
Observation during the total internship period.
Involvement with the operational process.
Official records of Dekko Accessories.
Face to face interview with different personal of the Dekko Accessories ltd. to get in
depth information.
Secondary Sources of Information
Annual report, quarterly revenue mobilization report, other various monthly reports were
used as the secondary sources.
Theoretical portion is summarized from my text materials etc.
For primary data direct conversation with senior executives and other officials took place
several times.
Secondary data are taken from different manual.
Internet.
3.2 Study Place
Suvastu Zenim Plaza.
H# 37, R# 16 (Old-27) Dhanmondi, Dhaka-1209, Bangladesh.
3.3 Time period of making the report
3.4 Data collection Technique
Data are collect form the annual report of DAL, from their employees, from the website
http://www.dekkogroup.com/dekko_accessories, Report on “Execution of Accounting & Budgetary
Control System – A Closure Observation” Made by Fahima Fatima (UIU) about Dekko Group. etc.
3.5 Data processing and Analysis Techniques
Data processing & analysis made by the Microsoft word & Excel.
Department Time Period
Accounts & Finance From 15 May to 15 August.
4.1 Accounting Principles & Policies Dekko Accessories Ltd
In the below try to discuses about the Accounting Principles & Policies Dekko Accessories Ltd.:
4.1.1 Basis of Accounting
Dekko Accessories Ltd. maintains its accounts in accordance with the International Accounting
Standards, as applicable. All incomes or expenditure received or paid and/or accrued during any
particular year is accounted for in the year to which it relates.
Accounting Period:
The accounting year of the company is from 1st July to 30
th June in year.
4.1.2 Significant Accounting Policies
Income Recognition:
Any income or receipt due / accrued against sales or service provided to any company or
otherwise by any of the Dekko Accessories Ltd. outlets is recorded on the date of sale and,
accordingly, accounted for in the year of origin.
Journal:
Cash/Bank/Accounts Receivable/LC Dr.
Sale of goods Cr.
Expenses:
Any payment or obligation for payment for a particular year is recognized as expenditure
in the year to which it relates. Expenditure accrued or incurred but not paid shall also be
considered as expenditure in the year it was actually committed.
Journal:
Particular Expense A/C Dr.
Particular Expense Payable Cr.
When the expense paid:
Particular Expense Payable Dr.
Cash/Bank Cr.
Any expenditure are booked / accounted for in the respective account and in the
respective cost center / department in pursuance to the chart of accounts.
Journal:
Marketing Department Dr.
Finance Department Dr.
General Department Dr.
Particulars Expense A/C Cr.
Any bank charge / commission paid or deducted by bank for usual banking transaction or
on the bank overdraft are considered as expense.
Journal:
Bank Charge / Bank interest Dr.
Cash / Bank Cr.
Any bank charge, commission, interest or fee paid or deducted by bank for import of
stock or capital asset is debited to the respective material or asset account.
Journal:
Particulars Assets A/C Dr.
Cash / Bank Cr.
Any bank interest charged against loans received for contraction building facilities and
major renovation of the company is capitalized instead of charging as expenditure.
Journal:
Capital work in progress A/C Dr.
Cash / Bank Cr.
Allocation of Expenditure:
Common cost incurred by the company incurred or accrued must be allocated among the related
cost centers / departments in proportion of their usage / share.
Journal:
Marketing Department Dr.
Finance Department Dr.
General Department Dr.
Particulars Expense A/C Cr.
Capitalization of asset:
Fixed Assets are recorded at actual cost. The ownership of all fixed assets purchased by Dekko
Accessories Ltd. is in the name of the organization. Any asset purchased by them is capitalized
when it satisfies following three conditions:
Minimum value for capitalization of an asset is taka 1000. Any asset whose purchase value is
less than taka 1000 shall not be considered as an asset and, accordingly charged as expenditure.
Expected useful life of the asset must be at least for 4 years.
In the case where cost of an asset is less than 1000 but expected usedful life is more than 4 years
that item shall be considered as expenses. However, records for non-capital items are maintained
separately for control purposes.
Depreciation Policy:
Full month depreciation is charged on fixed assets in the month of acquisition.
Journal:
Depreciation Expense – Asset Name Dr.
Accumulated Depreciation – Asset Name Cr.
Depreciation is not charge in the month of disposal or in the month of writing off any asset.
Dekko Accessories Ltd. follows the Diminishing Balance method in calculating on its fixed
assets.
In the terminal year of depreciation, the depreciation charge should by reduce by
taka 5.00 for identification of the assets. That means the value of an asset shall never
be depreciated fully. Such book should remain unchanged until the asset is disposed of or written
off from the books.
Rate of Depreciation:
Depreciation is charged in each financial year on every capital assets at the rates approved in
Third Schedule of Income Tax Ordinance of 1984.
Investment of Fund:
Dekko Accessories Ltd., for time to time, invest its fund in such form and in such a manner as
laid down for tax holiday companies under income tax ordinance 1984.
Journal:
Investment account Dr.
Bank A/C Cr.
Reserve & Surpluses:
General Reserve Fund
A general reserve fund @ 15% of the net profit of the company earn during the year is
transferred to the General Reserve Fund to meet future capital commitments and necessity under
the directives of the board.
Provident Fund
Dekko Accessories Ltd. makes provision for its liability on account of contribution to
employee‟s provident fund on monthly basis, at the time of disbursing the monthly salary. This
provision has being done in pursuance to the approved employee‟s provident funds rule.
After disbursement of salary, employee‟s contribution so deducted from the salary of the
employees and Dekko Accessories Ltd.‟s contribution to the PF a/c is transferred to the
nominated Employees Provident Fund Account. Amount so deducted and / or Dekko
Accessories Ltd. contribution not transferred to the Employee provident Fund Account must be
reflected in the financial statement of the Company as liability.
Journal:
Salary & Allowance (both contribution) Dr.
Liability for Provident Fund Cr.
When PF deposit in to Bank:
Liability for Provident Fund Dr.
Bank / Cash Cr.
4.2 Category of Financial Transaction Dekko Accessories Ltd
In the below try to discuses about the Category of Financial Transaction Dekko Accessories Ltd:
4.2.1 Category of Financial Transaction
Dekko Accessories Ltd. uses 6 types of voucher to record its financial transactions depending
upon the nature and type of transactions. These are:
4.2.2 Receipts
There are two types of receipts, they are:
Cash Receipts &
Bank Receipts.
Cash Receipts
Any amount received in cash by way of sale, loan, share capital, interest, or repayment of loans /
advances, collection against dues, etc. are treated as cash receipt transaction. All cash receipt
transactions are accounted for through cash receipt voucher.
Journal:
Cash Account Dr.
Sale/Loan/Capital/Interest etc. Cr.
Bank Receipts
Any amount received in the form of cheque / pay order / demand draft or in any form other than
cash by way of sale, share capital loans, or repayment of loans / advances, collection against
dues are treated as bank receipt transaction through bank receipt voucher.
All bank receipt transactions are recorded through bank receipt voucher.
Journal:
Received Bank Account Dr.
Sale/Loan/Capital/interest etc. Cr.
4.2.3 Payments
There are two types of payments, they are:
Cash Payments &
Bank Payments.
Cash Payments
Any amount paid in cash on account of expenditure, purchase of assets, purchase of stocks, and
settlement of accounts or any other payment made by Dekko Accessories Ltd. are considered as
cash payment transaction.
All cash payment transactions are accounted for through cash payment vouchers.
Journal:
Particular Expense / Assets Accounts Dr.
Cash Cr.
Bank Payments
Any amount paid by cheque, draft, pay order or account transfer on account of expenditure,
purchase of assets, purchase of stocks, settlement of accounts or any other payment other than
cash made by Dekko Accessories Ltd. are considered as bank payment transactions.
All bank payment transactions are accounted for through bank payment voucher.
Journal:
Particular Expense / Assets Accounts Dr.
Bank Cr.
4.2.4 Contra
Any transfer of fund by way of cash deposit to bank, withdrawal of cash from bank, transfer of
fund from one bank account to another bank account of the same or another bank are treated as
contra transaction and accordingly accounted for through contra voucher.
Journal:
Received Bank / Cash Accounts Dr.
Paid Bank / Cash Accounts Cr.
4.2.5 Journal Voucher
Journal voucher is recognized as voucher for paper transactions, where receipt or payment of
fund is not involved. Journal voucher are used for transfer or adjustment of ledger account
balances from one account to another account.
All account adjustments or transfer of general ledger account balances are recorded though
journal voucher. For example salary expense are booked in the end of the month, but not paid.
Journal:
Salary & Wages Accounts Dr.
Salary & wages Payable Cr.
4.3 Financial Management & Control Dekko Accessories Ltd
In the below try to discuses about the Financial Management & Control Dekko Accessories Ltd:
4.3.1 General
Financial Management is one of the most important tasks in as organization. Due consideration
has been given to all activities involving fund to ensure overall economy, efficiency and best
value for money for the greater interest of the organization.
4.3.2 Custody of the Fund
The Finance Director act as custodian of Dekko Accessories Ltd. Fund and ensure proper
utilization of fund in consultation with Manager of Cost Centre & Members of budget committee
of the Company.
The Director Finance may delegate such authority with respect to financial control and custody
of funds to Manager of Cost Centre & Members of budget committee of the Company to
facilitate the efficient and effective management of Dekko Accessories Ltd.funds, if felt
necessary to the circumstances.
4.3.3 Opening & Closing of Bank Account
The Financial Director is only empowered to authorize opening and closing of any bank account
of whatever nature in the name of Dekko Accessories Ltd. For its transactions subject has to
approval of the board. Such authority of opening / closing of bank account shall not be delegated
to any other official.
The board designates the signatories to operate the banks accounts with such limit as may be
expedient to the circumstances.
Reconciliation of Bank Account
The bank account must be reconciled on daily and monthly basis, before closing the monthly
accounts, with the bank statement provided by bank by some designated finance official
independent of the person preparing check or approving payments.
Fund Management
a) On the basis of amounts expected to be available and after taking into consideration-
anticipated utilization in a particular period, the Director Finance may designate those
funds in a away beneficial to the Company to avoid accumulation of excessive
balances.
b) Fund in excess of requirements of its operations may be placed in term-deposit, short-
term deposits or otherwise by the Director Finance. All such deposits or investments
must be made in the name of Dekko Accessories Ltd.
c) The authorized Officers of Dekko Accessories Ltd. Should preferably receive all
payment against sales or services, interest, miscellaneous incomes and/ or any other
income in cash or pay order.
d) Payments from vendor may be received through account L/C, Endorsements, payee in
favor of Dekko Accessories Ltd. Nopostdated cheque is allowed to receive by the
Officers or any authorized personnel from the finance department.
e) Officers must issue the money receipt at the time of receipt of the money (L/C,
Endorsements, cash / cheque / pay order / demand draft) from whatever source. Sales
Officers provides system-generated invoice with paid seal and signature an
acknowledgement of receipt of money.
f) Every single collection by the Officers must be deposited with the finance &
Accounts department on the same day of receipt. Finance & Accounts department
deposit all collected fund to the nominated bank account on the following day.
g) The Finance & Accounts department immediately prepares credit voucher or update
the system for all such funds received and enters in the book of account.
All idle funds should be kept in interest-bearing term deposit accounts or fixed deposit accounts.
Finance Director has to explore the investment opportunities and closely monitor the fund
position to ensure maximum benefit out of the idle fund, and also advice the Director Finance on
investment issues.
Internal Control
a) The Finance Director, with the approval of MD or Chairman, may from time to time
establish financial rules and regulations in order to ensure effective financial
administration, good governance and accountability. Such rules and procedures must be
communicated in writing under the signature of the Director Finance. If any such rules
and regulation affect the Managers of the Company, the decision is also be
communicated to all-department head of the Company.
b) The Finance Director may approve credit limit to three party‟s to enjoy
credit facilities in the company. Before sanctioning such credit limit, the
Finance Director analyzes the individual party past payment mode, general behaviors,
etc. Then Finance Director enables departmental manager to allow credit.
c) All payments are to be made only after approval for payment from the competent
authority and on the basis of supporting vouchers and other documents to ensure that:
1. Approved purchase orders have been place upon against supply of good or
services.
2. Goods or services have been received as per specification / requirement.
3. Invoice, memo, bill and other necessary supporting vouchers and documents are
enclosed.
4. Fulfilled the terms and conditions of the contract.
5. Payments are for the benefit of the company.
d) Establish Segregation of Duties (SOD) in such a way that ensures checking of one
employee‟s work by another employee, as a matter of routine work.
e) All documents used for financial transactions, i.e. Money Receipt, Purchase order, etc., of
Dekko Accessories Ltd. must be pre-numbered or system generated.
f) Designate officials in writing, who may receive money, incur obligations or
commitments, make payments, and sign correspondences on behalf of the Company.
g) Job Description of each staff / officer been proved by Dekko Accessories Ltd. at the time
of joining the organization and also at the time of transfer from one area to another area
in case of creation of new position.
4.3.4 Certification and Approval of Payment
The Account Controller is the designated Certifying Officer.
The Finance Director acts as the Approving Officer
The function performed by an Approving Officer is distinct from, and subsequent to,
those performed by a Certifying Officer.
Approving and Certifying Officer should not sign payments made to them unless it is
recorded that there is no substitute at the time of payment.
4.3.5 Petty Cash
Petty cash up to taka 10000 are maintained at the office to meet daily petty expenses.
Replenishment of petty cash should be processed when the balance reduced more than
taka 5000
Officers working in the others departments keeps an impress fund up to taka 25000 for
changes.
Summary of petty cash should be prepared according to format.
4.3.6 Petty cash Advances
All temporary advances should be made through the request for advance as per.
Temporary petty cash advances may be made to officials for the purpose of petty
purchase or meeting urgent requirements through I.O.U slip.
Proper track of all temporary advances made through I.O.U shall be kept by the cashier.
Director Finance shall approve the temporary advance before the disbursement is made.
Previous temporary advance must be adjusted before taking further advance. If the
advance are not adjust within one month, that should deduct from the advance taker.
Expense vouchers, as against of temporary voucher, must be submitted to the officer by
the end of next working day or refund the cash.
The officer must prepare payment and receipt vouchers on the day of payment or receipt
and prepare a summary of petty cash statement at the end of the day.
The officer is personally responsible for safekeeping of the cash. The accounts controller,
internal auditor or some designated official will conduct spot-checking from time to time.
4.4 Maintenance of Accounts on Dekko Accessories Ltd
In the below try to discuses about the Maintenance of Accounts on Dekko Accessories Ltd:
4.4.1 General
The accounting of financial transaction is managed with a properly designed computerized
Accounting System in accordance with international accounting standards to the extent
applicable to Dekko Accessories Ltd.
4.4.2 Responsibility
Under the overall supervision of Finance Director, the accounts controllers are responsible for
maintenance of financial accounts, generation of periodic reports and providing information to
the management.
4.4.3 Presentation of Financial Statements
The accounts controller is responsible for preparation and presentation of monthly financial
statement within 30 days of closing the month and annual financial statement within 30 days of
closing the year after all adjustments provisions.
4.4.4 Contents of Financial Statements
The financial statement includes:
Balance Sheet
Income Statement
Receipt and Payment Account
Comparative Statement: Budget VS Actual
Daily Cash Projection (DCP)
All supporting schedules with regard to:
o Fixed Assets.
o Accounts Receivable.
o Advance, Deposit and Prepayments.
o Accounts Payable.
o Liabilities and all unpaid obligations.
o Sources and Application of Fund.
o Others, as may be required.
4.4.5 Books & Chart of Accounts
The books of account are maintained strictly as per the Chart of Accounts and other codes to
facilitate generating any financial information on demand with every detail.
The designed system ensures the facility of coding and decoding financial figures with following
component such as:
Accounting Year
The accounting year of Dekko Accessories Ltd. is from 1st July to 30
th June.
Document Control
All payment vouchers, receipt vouchers, journal vouchers, money receipts, debit notes, credit
notes, invoices must be printed and sequentially numbered or programmed. All these printed
vouchers / Documents must be used chronologically in order to keep track of any missing
vouchers / documents.
Any printed vouchers / documents becoming unusable for any reason are crossed out and marked
as VOID and shall be kept with the voucher book for subsequent verification.
Record Keeping
All vouchers are kept chronologically according to its number in a file. Separate file for different
series of vouchers / documents (payment voucher, receipt voucher, journal voucher, etc.) shall be
maintained. All voucher / documents files are kept under safe custody and only authorized
persons are given access to those vouchers / documents.
Book Keeping
Dekko Accessories Ltd. maintains its Primary Books of Accounts in electronic form (Accounting
Software- TALLY). The account is maintained in accordance with the Chart of Accounts
illustrated in this manual.
Accounts Controller has the authority to add new account code according to its need in
accordance with the basic structure of the Chart of Accounts.
4.5 Letter of Credit
A Letter of Credit is an undertaking by the bank issuing it to pay the beneficiary of the credit provided
stipulated documents are presented and other terms and conditions of the LC are complied with. It is the
preferred mode of settlement between a buyer and a seller under the following circumstances:
They are not well-known to each other.
They are located in different countries and the seller is not sure of the credit worthiness of the
buyer.
In such cases, the seller would like a bank to provide assurance of payment. As an instrument of
international trade, it is one of the most secure methods for a seller to be paid. Besides credit risk
considerations, LCs is the customary business practice for long distance trade and a particularly important
commission earning service for any bank.
4.5.1 Features
The Letters of Credit module supports the processing of all types of clean and documentary LCs. These
include:
Import LCs
Export LCs
Guarantees
Shipping Guarantees
Clean LCs
Standby Guarantees
Reimbursement
4.5.2 Operations supported on LC
The following are the operations supported on an LC:
Open an import LC or guarantee
Open and confirm an import LC
Pre-advice an export LC
Advice an export LC
Advice and confirm an export LC
Confirm an export LC
Advice a guarantee
Import LC with pre-advice
In addition to amendment of the terms of an LC such as the expiry date, the amount, the latest shipment
date, etc. the operation on an LC as follows:
Open to open and confirm of an import LC
Pre-advice to advice of an export LC
Pre-advice to advice and confirm an export LC
Advice to advice and confirm an export LC
4.5.3 Processing Commissions and Charges
The method of collecting commissions and levying charges is flexible. Commissions can be collected for
the initiation and amendment events of an LC. The definition of commission rules facilitate the uniform
and efficient application of commission across all LCs processed under a product. Commissions can be
collected in advance or in arrears, periodically or non-periodically Various charges such as handling
charges, SWIFT charges, etc. can be processed.
1.50
1.60
1.70
1.80
1.90
2012-13 2013-14
4.6 Financial Ratio Analysis of DAL
Ratio analysis involves methods of calculating and interpreting financial ratios to assess the
Companies/firm‟s performance. Ratio analysis of a firm‟s financial statements is of interest to
shareholders, creditors and firm‟s own management. Ratio analysis is the starting point in developing the
information desired by the analyst. Ratio analysis provides only a single snapshot, the analysis being for
one given point or period in time. In ratio analysis it is possible to compare the company ratio with a
standard one.
4.6.1 Liquidity Ratio
The liquidity ratios measure the ability of an enterprise to meet its short-term obligations and reflect the
short-term financial strength of an enterprise. Analysis of liquidity is very important in knowing the
liquidity status, movement of funds, idle fund (if any) which will not only help financial management to
keep the liquidity position of the company in order but also make sure of payment to short-term creditors,
interested in short-term solvency of the company. Current ratio, quick ratio and working capital to total
asset ratio can be used to measure the liquidity position of the enterprise.
Current Ratio:
The current ratio is the ratio of total current assets to total current liabilities. Current ratio is a measure of
the firm‟s short term solvency of the firm‟s liquidity. It indicates the ability of the company to meet its
current or short term obligations.
Current Ratio =
Year 2012-13 2013-14
Ratio 1.64 1.85
Current Asset 754,777,278.76 808,396,218.99
Current Liability 459,281,287.87 436,641,925.11
1.25
1.30
1.35
1.40
1.45
1.50
1.55
1.60
2012-13 2013-14
Interpretation
The graph shows that the ratio of DAL is lower in 2012-13 than in 2013-14 because of an increase in total
current liabilities more than increase in total current assets.
Reasons
From our balance sheet I see that in 2012-13 current assets are increases specially Cash and Inventory
rather than 2013-14.
Comment
Here we can see that year by year the ratio is going up which is good for the company. Because
sometimes the assets has been going up and sometimes down. It means the company‟s asset management
quality is not good.
Quick Ratio:
The quick ratio is the ratio between quick current assets and current liabilities and is calculated by
dividing the quick assets by the current liabilities. It is a measurement of a firm‟s liability to convert its
current assets quickly into cash in order to meet the current liabilities. Generally, quick ratio of 1:1 is
considered satisfactory as a firm can easily meet all current claims.
Quick Ratio =
Year 2012-13 2013-14
Ratio 1.39 1.59
Current Asset 754,777,278.76 808,396,218.99
Current Liability 459,281,287.87 436,641,925.11
Inventories 118,269,169.00 112,670,821.00
-
0.01
0.02
0.03
0.04
0.05
0.06
0.07
2012-13 2013-14
Interpretation
The graph exhibits that the ratio of DAL is higher in 2013-14 than in 2012-13 because of a decrease in
total current liabilities, inventory and prepaid expenses as well.
Reason
For the reason of inventory up and down the quick ratio also change every year. The quick ratio is
increasing year by year because of increasing current assets and decreasing inventory, prepaid expenses
and liabilities which is the sign of good condition for the Company.
Cash Ratio:
The cash ratio is the most traditional assess of analyzing liquidity position. Generally we meet our current
liability with our current asset but the use of either the current or quick ratio is not good enough to
analyze the liquidity position of the firm because it consists of account receivable and inventory, which
takes time to convert with cash.
Cash Ratio =
Year 2012-13 2013-14
Ratio 0.06 0.03
Cash 7,604,622.38 3,299,860.44
Current Liability 118,269,169.00 112,670,821.00
Interpretation
From the graph it is evident that through all the 2 years the cash ratio of DAL is continuously decreasing
because of decreasing amount of cash.
Reason
To the year 2012-13 and 2013-14 cash are decreases because the costs of production are increase.
Comment
By analyzing the graph, it can be said that the company is not making good amount of cash year by year
and it is less than standard. So it is not very good sign for the company.
4.6.2 Activity Ratio
Activity ratio is concerned with measuring the efficiency in asset management. The efficiency with which
the assets are used would be reflected in the speed and rapidity with which assets converted into sales.
The greater is the rate of return over or conversion, the more efficient is the utilization of assets, other
things being equal.
Total asset turnover:
Another activity ratio is total assets turnover. The total assets turnover indicates the efficiency with which
the firm uses its assets to generate sales. The higher a firms total assets turnover the more efficiently its
assets have been used.
Total Asset Turnover Ratio =
Year 2012-13 2013-14
Ratio 0.70 0.67
Sales 928,635,798.33 956,750,515.50
Total Asset 1,331,279,158.12 1,430,541,154.14
0.65
0.66
0.67
0.68
0.69
0.70
2012-13 2013-14
Ratio
Interpretation
The graph shows that the ratio of DAL is lower in 2013-14 than in 2012-13.
Reason
Here in 2013-14 sales are increase and maximum are on cash. The total assets turnover ratio of DAL is
going to downward from year 2012-13 to 2013-14 which measures of the extent of generating sales in
terms of the total assets.
4.6.3 Profitability Ratios
Profitability is a tool to measure of operating efficiency. It also indicates public acceptance of the product
and shows that the firm can produce competitively. The profitability ratios measure the performance of
profit of an enterprise. The analysis of the profitability ratio is important for the shareholders, creditors,
prospective investors, bankers and the government alike.
Gross Profit Margin:
The earnings in terms of sales can be accessed through the profit margin. The gross profit margin reflects
the effectiveness of pricing policy and of production efficiency. It may also be indicative of higher sales
price with a corresponding increase in the cost of goods sold. It is also likely that cost of sales might have
declined without a corresponding decline in sales price. A relatively low gross margin definitely a danger
signal, warranting a carful and detailed analysis of the factors like high cost of production, a low selling
price responsible for it. Some authors consider that a profit margin ratio ranging from 20% to 30% has
been considered as the standard norm for any industrial enterprise.
Gross Profit Margin =
100%
30.00
32.00
34.00
36.00
38.00
40.00
2012-13 2013-14
Year 2012-13 2013-14
Ratio 39.14% 33.08%
Gross profit 363,456,318.56 316,520,922.96
Sales 928,635,798.33 956,750,515.50
Interpretation
It is seen from the graph that the ratio of DAL is higher in 2012-13 in compare to 2013-14 due to increase
in sales more than gross profit. In 2013-14 the gross profit margin is lower due to more increase in sales
than before where also the gross profit increases.
Reason
Here we see that in 2012-13 gross profit margins are increase because of gross profit increase but in 2013-
14 though gross profit decrease and sales increase that why gross margin decrease. And material cost
increase due to high rate & also increased other direct and indirect expense.
Net Profit Margin:
Net profit margin is indicative of management ability to operate the business with sufficient success not
only to recover from revenues of the period. It also indicates management efficiency in manufacturing,
administrating and selling of the products. A high net profit margin would ensure adequate return to the
owner‟s as well as enable a firm to withstand adverse economic conditions when selling price is
declining, cost of production is rising and demand for the product is falling. A low net profit margin has
the opposite implications.
-
5.00
10.00
15.00
20.00
2012-13 2013-14
Net Profit Margin =
100%
Year 2012-13 2013-14
Ratio 18.48% 12.79%
Net Profit After Tax 171,655,465.81 122,351,399.10
Sales 928,635,798.33 956,750,515.50
Interpretation
In the graphs we can see in 2012-13 the net profit margin is higher than 2013-14. The net profit margin
becomes downer day by day.
Reasons
By increase of production cost the net profit after tax is becomes downer.
Return on Asset:
The return on assets ratios calculated to measure the profit after the tax against the amount invested in
total assets to ascertain whether assets are being utilized properly or not. Some authors consider 10% to
12% rate of return on total assets as reasonable norm for a profitable firms and this may be considered as
reasonable norm for the selected enterprises.
Return on Asset =
100%
-
2.00
4.00
6.00
8.00
10.00
2012-13 2013-14
Year 2012-13 2013-14
Ratio 9.59% 6.55%
Net Profit After Tax 171,655,465.81 122,351,399.10
Total Asset 1,790,560,445.99 1,867,183,079.25
Interpretation
The graph exhibits that the return on assets becomes decrease from 2012-13 to 2013-14.
Return on Equity:
The return on equity measures the return earned on the common stockholder‟s investment in the firm.
Generally, the higher this return, the better off is the owners.
Return on Equity =
100%
Year 2012-13 2013-14
Ratio 12.89% 8.55%
Net Profit After Tax 171,655,465.81 122,351,399.10
Equity 1,331,279,158.12 1,430,541,154.14
-
2.00
4.00
6.00
8.00
10.00
12.00
14.00
2012-13 2013-14
Interpretation
The graph exhibits that the ratio of DAL becomes decrease from 2012-13 to 2013-14.
5.1 Discussion on findings
From my practical experience and in depth analysis of different personnel of Dekko Accessories
Limited the following findings can be pointed out:
Dekko Accessories Limited is pioneer in starting its business but the company was not
pioneer in setting effective organizational strategies.
Internal cost control system is moderate and need to improve for growing profit.
Quality of garments accessories is the strength of dekko accessories ltd. which is
maintaining strictly.
Market demand of garments accessories is so high due to quality of the production.
The company was not very much concern about their competitors and they also could not
read the marketing strategies of its competitors properly.
The company was very slow to react in the changing business environment.
The company was not prompt to take and implement any decision.
As it follows a diversified business strategy, this business unit (Dekko Accessories
Limited) is the largest contributing company in this group.
The company doesn't follow a well-established recruiting policy.
Diversified business strategy does not work well if all the business units cannot be
nourished properly.
To get competitive advantage and to sustain it for long run it needs to be prepared for
future changes in business environment and must outperform competitors.
Most of the employees are not happy about their salary, for that key employees are gone
when they get better opportunity.
Management has some problem with the internal auditors.
Bangladesh is an over populated country of South Asia. It is a full of natural resources. But the economic
condition is very poor and unemployed rate of population is another burden for developing our country.
Creating new employment opportunity in our country by investing large capital must be needed. DAL is
playing a vital role for our country economy.
Accounts Department of Dekko Accessories Ltd. is working all the time to sustain and satisfy its
employees. According to my own experience the working environment of the organization is very
inspiring. However, the organization needs to work a lot to satisfy its experienced and old employees. The
organization is always keen to implement new rules and actions for improvement.
To become a pioneer in an industry is easy than to be market leader for long time. To be a market
leader a company needs to provide superior customer value to consumers, to build and sustain
competitive advantage for long time, and to outperform competitors in every aspect. To outperform
competitors, the company must have clear idea about its own SWOT analysis and also try to study
competitors SWOT analysis.
So at last, from the analysis and discussion, I may conclude that DAL is being grown up industry because
of its Byers areas, Fractural development, Production capacity, Human resources and Bank activities
which are quite satisfactory.
7.1 Recommendations
The following suggestions can be taken into consideration by the Dekko Accessories Limited for
ensuring smooth running of the company & to take over major market share in the future market.
To get advantage from the superior marketing strategies the company needs to build and
sustain competitive advantage for long time.
The company needs to conduct extensive marketing research to get a clear picture of its
present condition and also about the activities of the competitors.
All of the products of Dekko Accessories Limited are to be well finished and accurate so
that lucrative appearance can be possible. Because well finished and accuracy play a
pivotal role particularly in the garments sector.
Every business unit should have equal importance and need to nourish properly.
Dekko Accessories Limited must have separate guideline and marketing strategies for
changing business environment of near future.
Top management's support is vital for the success of the company so they should take
any decision as soon as possible and allocate sufficient resources to support the decision
if necessary.
The company must follow a well establish recruiting policy. It should try to include
experienced and skilled employees as well as potential young employees.
The company should conduct both on the job and off the job training facilities for their
employees.
The company should prepare effective promotional strategy and allocate sufficient fund
for advertisement.
The Managing Director along with all employees should work sincerely and seriously to
revive the company position.
Dekko Group needs a FCA for their internal audit.
Bibliography
1. Dekko Accessories Ltd. Annual Report 2012-2013. Dhaka: Dekko Group.
2. Dekko Accessories Ltd. Annual Report 2013-2014. Dhaka: Dekko Group.
3. Fatima Fahima, 2012, Report on “Execution of Accounting & Budgetary Control System – A
Closure Observation”(UIU) about Dekko Group.
4. Gerald I. White; Ashwinpaul C. Sondhi; Dov Fried “The Analysis and use of Financial
Statement” (3rd
Edition) by Jhon Wiley & Sons, Inc.
5. Weygandt, J.J. Kimmel, D.P. and Kieso, E.D., 2011. Accounting Principles. 9th ed. USA:
John Wiley & Sons, Inc.
6. Dekko Accessories Ltd. Overview, Pruducts, Unit info, Available at:
http://www.dekkogroup.com/dekko_accessories (Accessed 8 February 2014)
Appendix
BALANCE SHEET OF DAL
2012-13 2013-14
ASSETS
Fixed Assets 576,501,879.36 622,144,935.15
Current asset
Inventories 118,269,169.00 112,670,821.00
Cash in Hand 2,401,592.00 2,661,177.00
Cash in Bank 5,203,030.38 638,683.44
Short term Investment 60,400,000.00 60,400,000.00
Sundry Debtors 34,903,230.20 41,728,433.78
L/C in Hand 568,202,838.30 502,776,770.30
Loans, advance & Deposit 332,218,255.38 407,382,838.22
Construction 49,565,871.00 67,930,530.00
Goods in transit 14,912,447.27 9,761,414.26
Interest receivable 16,636,520.00 20,963,448.00
Bank Guarantee 295,264.25 295,264.25
Machinery in transit 1,163,441.00 6,964,535.38
Advance income tax 9,886,907.85 10,864,228.47
Total Current Assets 1,214,058,566.63 1,245,038,144.10
LIABILITIES AND EQUITIES
Current liabilities
Sundry Creditors 14,541,768.90 7,298,691.54
Advance Against sales
-
53,236,356.90
Creditors for expence 17,138,715.00 20,766,469.00
Creditors for finance 719,599.00 843,725.00
SOD with MBL 156,020,217.96 235,622,142.16
L/C Discounted 178,796,540.60 43,586,025.16
Loan with Mercantile Bank 92,064,446.41 75,288,515.35
Total Current Liabilities 459,281,287.87 436,641,925.11
Net Current Asset 754,777,278.76 808,396,218.99
Total Net Asset 1,331,279,158.12 1,430,541,154.14
Equity (share holders' equity)
Share Capital 2,000,000.00 2,000,000.00
Capital Reserve 1,112,629,113.59 1,223,946,429.84
Revenue reserve and surplus: 216,650,044.53 204,594,724.30
Total Equity 1,331,279,158.12 1,430,541,154.14
Income Statements
Particulars 2012-13 2013-14
Sales
928,635,798.33
956,750,515.50
Income from exchange gain
133,384,015.26
97,979,644.31
Net sales
1,062,019,813.59
1,054,730,159.81
Less: Cost of goods sold
698,563,495.03
738,209,236.85
Gross profit
363,456,318.56
316,520,922.96
Less: General & Admin Expanses
39,492,755.80
46,156,520.14
Less: Marketing & Dist. Expenses
84,296,314.89
98,106,626.33
Less: Financial expenses
82,874,243.54
63,157,351.77
Operating profit
206,663,314.23
207,420,498.24
Net operating income
156,793,004.33
109,100,424.72
Net operating income to Net sales 15% 10%
Others Income
14,862,461.48
13,250,974.38
Profit for the year
171,655,465.81
122,351,399.10
