INTRODUCTION INTRODUCTION Due to necessary requirements to apply theory to practice and then after completing the theories of accounting major, various universities have let students to make enquiries[.]
1 INTRODUCTION Due to necessary requirements to apply theory to practice and then after completing the theories of accounting major, various universities have let students to make enquiries about entrepreneur’s fact, which not only reinforces these theory to speed up firm’s production, but also improves highly skilled professionals In addition, students who have already graduated could be able to integrate and complete company’s task In recent years, accompanying with the continuous development of the transport sector throughout our country, as well as meeting travel needs of the people created favorable conditions for economic sectors that is taken part in transportation passenger These are contributed by the control of recording transactions in freight firms During internship period at Hoang Ha JSC, the author get an overview of the company such as history and development, organizational structure as well as the performance the business of the company in recent years Furthermore, more fortunately, I have been learning about the accounting system as well as in the issues of accounting at the company The structure of the internship report consists of chapters: Chapter 1: OVERVIEW OF HOANG HA JOINT STOCK COMPANY Chapter 2: ACCOUNTING DEPARTMENT AND ACCOUNTING SYSTEM AT HOANG HA JOINT STOCK COMPANY Chapter 3: SOME REMARKS ON FINANCIAL ACCOUNTING MANAGEMENT AT HOANG HA JOINT STOCK COMPANY Due to limited time and no experience, report could be the inevitable shortcomings I would like to receive comments, suggestions from Assoc Prof – Ph.D Pham Thi Bich Chi and teachers in school of accounting – auditing that have supported me to accomplish this report Thank you for your helps! Supervisor: Assoc Prof – Ph.D Pham Thi Bich Chi Vu Thu Ha Class: advanced accounting 53 Chapter 1: OVERVIEW OF HOANG HA JOINT STOCK COMPANY 1.1 Establishment and Development of Hoang Ha Joint Stock Company 1.1.1 Background information of the company Hoang Ha JSC was established according to Decision No 1767/2001 / QD - UB 25 September 2001 People's Committee of Thaibinh Hoang Ha SJC are the enterprise which has independent records in term of accounting system and operate under the Department of Transportation of Thai Binh province The company is mainly responsible for the transport of passengers in cars, besides the company does business such as car accessories, materials, gasoline After changing the organizational structure, location and ownership of company, Hoang Ha has its headquarter located in No 368 Ly Bon, Thai Binh city with an area of 10.377m2 including : offices, workshops and car parking area Thai Binh province has relatively high population density and no rail traffic These lead to the fact that road transport accounts for an important position in the economic - politics of the province In addition, Thai Binh is a mainly agricultural province, where the economic development has not catched up with some neighboring provinces for examle: Nam Dinh, Hai Phong, Hai Duong In recent years, according to open – door policies of the Party on the evolutionary development of the country, Thai Binh province has many incentives to encourage various enterprises to invest in and out the province, that are result of the fact that there are many industrial zones and sub- industrial zones formed in the Thaibinh city and districts in the province During the 13 years of establishment and development, the company have invested new kind of transports to meet all transportation needs Especially the company has a team of employees with high professional , all of them always consider passengers as King This makes a good impression for passengers inside and outside the province when travelling by Hoang Ha transports The fact shows that market share of passengers of Hoang Ha in general and on the route Thaibinh - Hanoi in particular take up very large Supervisor: Assoc Prof – Ph.D Pham Thi Bich Chi Vu Thu Ha Class: advanced accounting 53 ratio among all companies and has a lot of limitless potential This is also a vital prerequisite for the company to expand and develop in other provinces Company’s information - Company Name: Hoang Ha Joint Stock Company - Business name: Hoang Ha Joint Stock Company - Abbreviation: Hoangha JSC - Chief Executive Officer and Director: Luu Huy Ha - Phone: 0913.567.701 - Head office: 368 Ly Bon Street, Thaibinh City - Phone: 036.3842842 / 250 888 0366 888 - Fax: 036.3846.908 - Website: http://www.hoanghaco.com.vn - Email: congtyhoangha@yahoo.com - Tax code: 1000.272.301 - Account: 4711.000.000.2586 at the Bank for Investment and Development of Vietnam Thaibinh subsidiary - Director is the legal representative for the company - The Company might establish subsidiaries and representative offices to complete the operational objectives of the company in accordance with the resolutions of the Board of Directors and to the extent permitted by law Branch name and address - Subsidiary of Hoang Ha in the Hung Yen city, Hung Yen province Address: Hung Yen’s coach station, Hung Yen City, Hung Yen province Phone: 0321.3515.515 - Subsidiary of Hoang Ha in Hanoi Address: No 30 Vong Street, Hoang Mai precinct, Dong Da District, Hanoi Phone: 04.3628.3677 - Subsidiary of Hoang Ha in Quang Ninh Address: Cua Ong coach station, group 18, zone 2, Cua Ong Ward, Cam Pha town, Quang Ninh Province Supervisor: Assoc Prof – Ph.D Pham Thi Bich Chi Vu Thu Ha Class: advanced accounting 53 Phone: 0937.460.171 1.1.2 Some achievements of the company Since 2001, the company has continuously developed to seize the opportunity to create company own brand, this efforts has achieved a encouraging achievements are as follows: 2004 - Excellent Emulation Flag of the Ministry of Transport - Merit of Labor Federation of Thai Binh - Merit of People's Committee of Thai Binh 2005 - Awards for youth employment by the Committee for International Cooperation in Vietnam and the National Committee for Youth Vietnam awarded - Labor federation rewarded merit no 19 on 12/20/2005 2006 - Vietnam Gold Star award which was organized by the International Committee in collaboration with the Central Committee of the Young Entrepreneurs Association of Vietnam awarded 2007 - People's Committee of Thai Binh awarded the merit for company’s director for outstanding achievements in performing the tasks of socio-economic development of the non-state sector in two years 2005 and 2006 - Chamber of Commerce and Industry of Vietnam awarded a merit for the director and the Chairman as the typical entrepreneur local business sector in 2007 - People's Committee of Thai Binh awarded the top 10 typical enterprises in 2007 - The Ministry of Transport awarded certificate of merit for Hoang Ha JSC for achievements in developing the movement of local transportation 2007 - Merit was awarded by Insurance Corporation of Vietnam because of achievements in” Implementing the policy of social insurance in 2007" Supervisor: Assoc Prof – Ph.D Pham Thi Bich Chi Vu Thu Ha Class: advanced accounting 53 2008 - Director of the company received a medal "For the development of the business community in Vietnam" awarded by the Chairman of the Chamber of Commerce and Industry of Vietnam - People's Committee of Thai Binh awarded certificates of merit for Hoang Ha JSC which had outstanding achievements in business in 2007 (No 12 / QD / UB 9/1/2008) - Gold Star Cup of Red River Delta Region in 2008 - Vietnam Gold Star Cup in 2008 - Vietnam Quality was awarded by the Center of Quality Standards - Ministry of Science and Technology of Vietnam - People's Committee of Thai Binh awarded a merit to company because of reaching the Top 10 outstanding enterprises in 2008 2009 - People's Committee of Thai Binh awarded certificate of merit for the company for outstanding achievements in production and business, contributing to the economic development of the local society in 2009 - Chamber of Commerce and Industry of Vietnam awarded certificate of merit for director Mr Luu Hoang Ha who was a typical entrepreneur local business sector in 2009 2010 - The company was recorded as one of the 500 fastest growing companies in Vietnam in 2010 2013 - President of the Socialist Republic of Viet Nam awarded the third labor medal 1.1.3 Relationship between the company and related parties Supervisor: Assoc Prof – Ph.D Pham Thi Bich Chi Vu Thu Ha Class: advanced accounting 53 Banks : Company has being traded in banks such as the loan is secured by mortgaging part of fixed assets as a means of transport of the borrower Banks are: - Joint Stock Commercial Bank for Foreign Trade of Vietnam – Thai Binh subsidiary - Joint Stock Commercial Bank for Investment and Development of Vietnam – Thai Binh subsidiary - Dong A Bank - Thai Binh subsidiary Department of Taxation: The company pays the tax in the Tax Department of Thai Binh 1.1.4 Market shares of the Company To examine this issue, the author considers three main types of services of the company : - For the type of bus, the company is now the unique firm that the Department of Transport Thai Binh licensed, so the company’s market share accounts for 100 % - For the type of taxi, there are many taxi companies operating in the province such as the Hoang Ha taxi ( including Hoang Ha taxi and Thai Binh taxi ), Mai Linh, Thien Binh , Phiet Hoc, Compared to other taxi company, Hoang taxi was estalished earliest in 2004 and until now the company has many years of operation in the province ( Thien Binh taxi Has operated since 2008, while 2009 was the first time Mai Linh operated in Thai Binh ) The market share of taxi company in the province of Thai Binh might be seen in the following bar chart: Chart : Market shares of taxi company operating in the province Supervisor: Assoc Prof – Ph.D Pham Thi Bich Chi Vu Thu Ha Class: advanced accounting 53 ( Source: Administrative – office department) Looking at the bar chart in more detail we can see that market shares of Hoang Ha taxi accounts for almost half of the market share in the province, while the Mai Linh taxi ranks second place, with 15 % of total In addition, Thien Binh and Phiet Hoc taxi take up 15% and 11 %, respectively - For this type of intercity bus service in the Thai Binh, more than 10 enterprises operating taxi service, including some main rivals: Hoang Long , Vietbus , Thai Binh passenger- car JSC, Transerco , Hai Au Chart : Market share of passenger cars operating in the province ( Source: Administrative – office department) Although there are various competitors in the market, market shares of the company is higher than the share of others Looking at the chart we can see that the main competitor of Hoang Ha is Hoang Long JSC and the gap between Hoang Ha JSC and other companies is not much different Therefor, Hoang Ha JSC needs to develop future plan in more detail to gain market shares as much as possible from competitors 1.1.5 Market and target customers : Supervisor: Assoc Prof – Ph.D Pham Thi Bich Chi Vu Thu Ha Class: advanced accounting 53 Target market that the Hoang Ha JSC concentrates towards mainly in the Thai Binh province, where local people use the services of the company such as bus, taxi, passenger cars to commute daily In addition, in term of passenger- car service , the company also aims to other provinces such as Hanoi , Quang Ninh , Nam Dinh , Ha Nam , Primary customers of the company towards the people of the province In term of bus services , regular clients are workers in the industrial zones, students, who live far from factories and schools, but they have low income or no income For passenger- car service, customers are mainly students living away from home, and people who work in other provinces 1.1.6 Suppliers: For the transportation industry, primarily providers are automotive manufacturing companies and companies where supply material, replace car’s parts, The company also provides car’s materials and parts and also get more from consulting firms parts and auto repair ASC , VietParts 1.2 Characteristics of the Business Operation of Hoang Ha JSC 1.2.1 Functions and Responsibilities The responsibilities of the company are not only enhancing technical construction but also gradually modernizing the service approach, building a team of staffs, who have highly qualified professionals in order to meet the development needs of enterprises In addition, the company also expanded relations, market development, ensuring balance budget, and completing company’s obligations to the Government, improving the living of workers However, to carry out functions above, the Company has to perform the following responsibilities Construction and implementation of business plan under the current regulations in order to fully implement the functions and duties which is set by the company ; Compliance with State law on the issue of safety when transporting passengers , goods and fulfilling the obligation to pay tax for government Supervisor: Assoc Prof – Ph.D Pham Thi Bich Chi Vu Thu Ha Class: advanced accounting 53 Management and effective use of funds to perform the task and ensuring profitability ; Make the commitment of economic contracts, purchase contracts and foreign trade contracts , and other obligations relating to the business activities 1.2.2 Features of the Business Operation 1.2.2.1 Business Scope Hoang Ha JSC is one of the leading companies in the field of transport in Thai Binh province as well as the surrounding areas Due to the characteristics of the service sector in general and transport services in particular, there are many activities in business operations of the company, but transporting passengers and goods is the most popular activity With a vision of development, the company has gradually expanded its field of activities , including many different types of business , such as: - Business on passenger transport field on fixed routes and tour contractual - Carriage passengers by taxi and bus - Office rent - Repairing and maintaining of automobiles, vehicles - Operate parking area - Business on hotel and catering services - Business on delivery service - Purchase and sale of lubricants - Agents to purchase cars (old and new ones) Due to the characteristics of the service sector in general and transport services in particular , business operations of the company diversifies, including many activities One of main activities is passengers and goods transportation The company also collaborates with organizations working in service industries such as restaurants , hotels This will enable the company has been a frequent and stable visitor resources to contribute to increasing in service revenue The company has really met the essential needs of the clients and has built its position in the market as well as outside the province Supervisor: Assoc Prof – Ph.D Pham Thi Bich Chi Vu Thu Ha Class: advanced accounting 53 10 1.2.2.2 Characteristics of products and services Hoang Ha JSC has conducted research to implement strategy of diversified business items to enhance competitiveness advantages In business operations of the company, transporting passengers and goods is basic activity In particular, the transport of passengers and goods in terms Hoang Ha primary services provided are : Taxi , Bus , bus , car rental travel services In addition , Hoang Ha also provides other services such as office rental, hotel services , restaurants, repairing and replacement auto parts It can be seen that products and services of the company are diversified and abundant and can meet the needs of people inside and outside province 1.2.3 Process of Producing Services Due to the terrain , Thai Binh has no rail transport , air transport; therefore road transport which always prevails over other transports, this is also one of the advantages of company However, the company has to research to implement the diversified strategies to increase competitive advantages Currently , the company is doing business such as passenger cars routes ( inter- provincial ), bus, taxi, contractual and travelling cars, express delivery and workshops Supervisor: Assoc Prof – Ph.D Pham Thi Bich Chi Vu Thu Ha Class: advanced accounting 53