Find out about the production and business

General objectives Analysis of production and business results of Yen Lap Irrigation Company Limited Quang Yen - Quang Ninh in the period from 2018 to 2020 in order to assess the overall

VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE

FACULTY OF ECONOMICS AND RURAL DEVELOPMENT

 

DANG CONG DUONGBUI KHANH DUYNGUYEN TRIEU KHANG

TOPIC: FIND OUT ABOUT THE PRODUCTION AND BUSINESSRESULTS OF YEN LAP IRRIGATION COMPANY LIMITED

QUANG YEN - QUANG NINH

Hanoi - 2022

VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE

FACULTY OF ECONOMICS AND RURAL DEVELOPMENT

 

INTERNSHIP REPORT

FIND OUT ABOUT THE PRODUCTION AND BUSINESSRESULTS OF YEN LAP IRRIGATION COMPANY LIMITED

QUANG YEN - QUANG NINH

Student name: Dang Cong Duong (640097) Bui Khanh Duy (640906) Nguyen Trieu Khang (640712)

We assure you that this is our research work, the figures and results stated in the graduation thesis are honest from the actual situation of the internship unit.

Dang Cong DuongBui Khanh DuyNguyen Trieu Khang

PART II: THEORETICAL BASIS, RESEARCH METHODS AND CURRENT SITUATION OF BUSINESS OPERATION RESULTS 9

2.1 Some business concepts 9

2.1.1 Business concept, business analysis 9

2.1.2 Concept of revenue, cost, profit 9

2.2 Content analysis of business activities 11

2.2.1 Payment criteria 12

2.2.2 Debt management indicators 13

2.3 Reseach methodology 14

2.3.1 The method of data collection 14

2.3.2 Methods of collecting secondary data 14

2.3.3 Information processing method 14

2.3.4 Methods of data analysis 14

2.4 Current situation of business operation results 15

2.4.1 Introduction of the company 15

2.4.2 Oriented development 15

2.4.3 Organizational structure and personnel 17

2.4.5 Analysis of business results at Yen Lap Irrigation Company Limited

Quang Yen - Quang Ninh in the last 3 years ( 2018-2020) 21

Table 1: Differences in the company's business results 21

Table 2: Revenue by each activity of the company (2018-2020) 23

Table 3: Expenses by each activity of the company 24

2.5 Analyze financial metrics 26

2.5.1 Liquidity Analysis Ratios 26

Table 4: Current ratios (2018-2020) 26

Table 5: Quick ratios (2018-2020) 27

2.5.2 Evaluation criteria debt management 28

Table 6: Debt-to-asset ratios 28

Table 7: Debt to Equity Ratio 29

2.6 Overall assessment of business performance at Company in the period 2018 - 2020 30

PART III : SOLUTIONS TO IMPROVE BUSINESS PERFORMANCE AT YEN LAP IRRIGATION COMPANY LIMITED QUANG YEN - QUANG NINH 32

3.1 Company development direction 32

3.2 Solutions to improve the company's business results 32

3.2.1 Financial solutions 32

3.2.2 Manufacturing solutions 34

3.2.3 Workforce solutions 36

3.2.4 Technological - technical solutions 37

3.2.5 Management and operating solutions 38

Table 1: Differences in the company's business results 19

Table 2: Revenue by each activity of the company (2018-2020) 20

Table 3: Expenses by each activity of the company 22

Table 4: Current ratios (2018-2020) 24

Table 5: Quick ratios (2018-2020) 25

Table 6: Debt-to-asset ratios 25

Table 7: Debt to Equity Ratio 27

The current irrigation industry may not be noticed and chosen by many people But in fact, no era in our country can be without this work Since ancient times, water treatment has been focused on by our forefathers, becoming one of the most important jobs of the country.

Vietnam is a country with a coastline of over 3,600 km and a dense system of rivers The management, protection and exploitation of precious resources of the country are reflected in such areas as: integrated exploitation of water resources, environmental protection, management of river basins, coastlines, construction Repairing and renovating irrigation systems effectively is the top challenge of the whole industry Therefore, the development of works in the irrigation system is the top goal of the irrigation industry in general and irrigation companies in particular.

Through my internship and practical study at Yen Lap Irrigation One Member Limited Liability Company, I realized that this is a company with a special mission when the demand for irrigation services in economic development is increasing In natural conditions with drastic fluctuations like ours, irrigation works, especially water reservoirs, have the effect of preventing, combating and regulating floods for downstream areas; pumping stations, culverts under flood control dikes and other drainage works to drain water for the whole society and people.

In addition, through the internship at the company, I somewhat understood the company's irrigation activities with a large sample field in Quang Yen With the above reasons, I decided to choose the topic: "Learning about the project to build a large sample field in Quang Yen at Yen Lap - Quang Yen One Member Limited Liability Company" as the group's internship report.

1.2.1 General objectives

Analysis of production and business results of Yen Lap Irrigation Company Limited Quang Yen - Quang Ninh in the period from 2018 to 2020 in order to assess the overall business situation of the company From there, propose measures to improve the company's operating results.

1.2.2 Specific objectives

- Analyze the results of business performance evaluation criteria such as revenue,

profit, and expenses of the company over the past 3 years from 2018 to 2020 - Proposing solutions to improve the company's business results in the future.

What solutions contribute to improving the company's business results?

1.3 Subject and research scope of the topic 1.3.1 Scope of content

Research object: Revenue, cost, profit in the balance sheet and financial statement of

Yen Lap Irrigation Company Limited Quang Yen - Quang Ninh.

1.3.2 Scope of time

- The report is made in the first semester of the academic year 2022-2023.

- Time to collect secondary data: The period from 2018 to 2020 - Time to collect primary data: December 2022.

1.3.3 Scope of space

The research is carried out at Yen Lap Irrigation Company Limited Quang Yen -Quang Ninh.

SITUATION OF BUSINESS OPERATION RESULTS2.1 Some business concepts

2.1.1 Business concept, business analysis

According to Clause 21, Article 4 of the Enterprise Law 2014, business is the

continuous performance of one, several or all stages of the investment process, from production to consumption of products or provision of services market for profit Thus, business activities include any activities that an enterprise engages in with the main purpose of making a profit in the course of business Business activities including operating, investing and financing are ongoing and focused on creating value for shareholders.

Business analysis is the research process to evaluate the entire process and results of business activities; potential sources that need to be exploited in enterprises, on that basis, propose plans and solutions to improve the efficiency of production and business activities of enterprises (Trinh Van Son, 2005) Business development is the process of recognizing the nature and impact of all aspects of business activities, is the process of consciously and consciously recognizing and improving business activities, in accordance with the conditions of the business specific to each enterprise and in accordance with the requirements of objective economic laws in order to bring about high business efficiency (Trinh Van Son, 2006).

2.1.2 Concept of revenue, cost, profit

2.1.2.1 Revenue

Is the entire money from selling products, goods, and providing services after deducting payment taxes, sales discounts, and returned goods (if valid documents are available) and accepted by the customer for payment .

Revenue from business activities includes:

- Total sales revenue: is the total amount of money from the sale of goods and services that have been accepted by customers for payment (regardless of whether money has been collected or not).

- Net revenue: reflects the direct money earned by the enterprise in doing business Revenue from financial activities: Includes revenues from joint ventures, associates, share capital contribution, asset leasing, deposit interest, loan interest, and income from securities trading (bonds, bills, stocks).

Revenues from other activities: These revenues include revenues from the sale of materials, goods, excess assets, payables that cannot be paid due to creditor's reasons, etc.

2.1.2.2 Costs

The cost of production and business of an enterprise is expressed in money of all material and labor costs that the enterprise has to spend to produce and sell products and some refund of indirect tax that the business has to spend to carry out production and business activities in a certain period Includes production costs, non-manufacturing costs and financial operating costs.

Production cost:

- Cost of direct materials: Including costs of raw materials, direct materials used for the production of products of enterprises.

- Direct labor cost: This cost includes the cost of main salary, extra salary, allowances, social insurance

- General production costs: Including staff costs; cost of materials, tools and instruments; cost of production tools; fixed asset depreciation expense; Cost of hired services; other monetary costs.

Non-manufacturing costs:

- Selling expenses: Are costs incurred in the process of consuming products and goods, including costs of packaging, transportation, introduction, product preservation Such as staff costs; cost of materials, tools and tools; depreciation expense for fixed assets; costs of transportation, loading and unloading, preservation; advertising and marketing expenses; other monetary costs.

- Enterprise administration expenses: Including the following items: cost of management staff, cost of management materials, cost of office furniture, cost of depreciation of fixed assets; tax-free-fee; provision expenses, costs of services purchased from outside, expenses in other cash.

Financial operating expenses: This expense reflects the expenses of financial activities.

2.1.2.3 Profits

Profit is the difference between the total revenue from the sale of products, goods and services minus the cost of all sold goods and services and tax as prescribed by law (except profit tax).

 Profit from business activities: This entry reflects the financial results before corporate income tax of the main operating activities in the reporting period.

Net operating profit = Gross profit - (Sales expenses + Administrative expenses)

 Net profit from financial activities: This entry reflects the difference between income and expenses of financial activities in the reporting period.

Net profit from financial activities = Revenue from financial activities - Financial

2.2 Content analysis of business activities

Analysis of some evaluation criteria:

2.2.1.1 Current ratio (current ratio)

The current ratio reflects the relationship between current assets and current liabilities The current ratio represents the level of coverage of current assets against current liabilities Current liabilities are liabilities that must be paid during the period, so the business must use its real assets to pay by converting a part into cash.

If the calculated ratio < 1: The solvency of the enterprise is not good, the short-term assets of the enterprise are not enough to pay short-term debts and due debts.

If the calculated ratio is > 1: the enterprise is able to pay its debts, and if this ratio increases, it reflects the degree to which the enterprise can guarantee to pay its debts, the higher the risk of bankruptcy If the ratio is low, the financial situation is considered to be good, but if this ratio is too high, it is not good, it shows the abundance of the enterprise in payment but reduces the efficiency of capital use by the enterprise have invested too much in short-term assets and can lead to a bad financial situation.

If the short-term ratio gradually approaches zero, the enterprise is unlikely to be able to pay its debts, the financial situation of the enterprise is facing difficulties and the enterprise is in danger of bankruptcy.

This ratio remains at a high or low level depending on the business lines of each enterprise and the payment terms of receivables and payables in the period.

2.2.1.2 Quick payout ratio

Quick payout ratio =

To assess the solvency of the business, managers also need to know the quick ratio of that business This ratio is also known as quick ratio In this ratio, inventory is eliminated, because in current assets, inventory is considered a low-liquidity asset than The coefficient above = 1 is considered the most reasonable because so the enterprise can both maintain the ability to pay quickly and not lose the opportunity brought about by the ability to pay debts.

The coefficient above < 1 indicates that the enterprise has difficulty in paying debts The coefficient above 1 reflects bad debt payment situation because cash and cash equivalents are stagnant, slow capital turnover reduces capital efficiency.

However, like the short-term debt ratio, the magnitude of this ratio also depends on the business lines of each enterprise and the payment terms of the receivables and payables in the period.

2.2.2 Debt management indicators

2.2.2.1 Debt-to-total assets ratio (TD/TA)

Debt to total assets ratio =

Total debt = Short-term debt + Long-term debt

The ratio above shows how a company has grown and created its assets over time A TD/TA ratio greater than 1 indicates a significant portion of assets are financed by debt In other words, the company has more liabilities than assets A high TD/TA ratio also indicates that a company may be at risk of default on loans if interest rates rise suddenly.

A TD/TA ratio of less than 1 means that the majority of a company's assets are financed with equity.

2.2.2.2 Debt to Equity Ratio (D/E)

Debt-to-equity ratio =

The debt-to-equity ratio indicates the ratio between the two primary sources of capital (debt and equity) that a business uses to finance its operations The debt-to-equity ratio helps investors have an overview of the financial strength and financial structure of the business.

Usually, if this ratio is greater than 1, it means that the assets of the business are financed mainly by debt, otherwise, the assets of the business are financed mainly by equity.

The smaller the D/E ratio, which means that the liabilities are a small percentage of the total assets or total capital, the less difficult the business will be in finance The higher this D/E ratio is, the greater the probability that the business will have difficulty paying its debts or go bankrupt when the bank interest rates are high.

2.3 Reseach methodology

2.3.1 The method of data collection

This study uses a systematic approach to obtain general and complete information on business performance at Yen Lap Irrigation Company Limited Quang Yen - Quang Ninh That will be the basis to learn more specifically about the situation and solutions to develop business activities of Yen Lap Irrigation Company Limited Quang Yen - Quang Ninh.

2.3.2 Methods of collecting secondary data

The main sources of reference data are survey data published on the media, the internet and the Company's financial statements related to business development at Yen Lap Irrigation Company Limited Quang Yen - Quang Ninh.

Secondary data is collected including both quantitative and qualitative information, edited and processed.

2.3.3 Information processing method

Quantitative information collected from the financial statements and statistical documents of Yen Lap Irrigation Company Limited Quang Yen - Quang Ninh will be arranged to show the development of business results at the Yen Lap Irrigation Company Limited Quang Yen - Quang Ninh Complete by presenting in many forms such as tables, charts.

2.3.4 Methods of data analysis

Descriptive statistics, comparative statistics: Used to describe the basic characteristics of data collected from empirical research related to the current situation of business activities at Yen Lap Irrigation Company Limited Quang Yen - Quang Ninh.

2.4.1 Introduction of the company

- Company name: Yen Lap Irrigation Company Limited Quang Yen - Quang Ninh - Tax code: 5700102052

- Business registration date: September 28, 2009

- Head office: Yen Lap area, Minh Thanh ward, Quang Yen town, Quang Ninh province - Legal representative: Mr Nguyen Xuan Tung

- Business field: Service activities related to irrigation

Figure 2.4.1: Office of Yen Lap Quang Ninh Irrigation Company Limited

2.4.2 Oriented development

Mission:

Business and commercial activities within the scope of business lines specified in the company's business license Strictly abide by the regimes and policies of the State and local authorities where the company is located.

The Executive Director is responsible for formulating and promulgating regulations on organization and operation of the company, completing all procedures for doing business Actively active in increasing working capital Research and implement necessary measures to improve efficiency and quality of business and services, gradually increasing business efficiency.

Always put credibility first, creating trust and high trust in customers Function:

As an irrigation company, it is mainly responsible for managing, exploiting, protecting and maintaining the system of irrigation works.

Organize and operate the entire system of irrigation works to serve the people's daily life, economy and society.

Improve the environment, ecology and prevent storms and floods, and mitigate natural disasters.

President and CEO:

- The person who directs the operation of the company, takes direct legal responsibility in accordance with the law.

- Responsible for monitoring, evaluating and fostering management, strategic direction and development goals of the company Organize the implementation of business plans and investment plans of the company.

Business Department

- Developing strategies, organizing human resources, building processes, business regulations, evaluating work performance continuously to improve and help improve the company's operations.

- Collect and manage customer information - Negotiate and sign contracts.

Accounting Department:

- The accounting department has the function of collecting invoices, vouchers and information related to economic issues in the past; analyzing, processing, recording, calculating and synthesizing data obtained from vouchers and books;

- Check the accuracy and legality of existing documents; Financial reporting to superiors, making internal reports according to the company's regulations and other reports at the request of the Director.

Organization and AdministrationDepartment :

- As a professional department to advise and assist the Director on personnel organization, labor, salary, emulation, reward, discipline, training, planning, administration, clerical, archiving , health and protection of internal politics.

Management Water And Technical Department:

- Is the part that plays the role of building and maintaining structures, machines, equipment, systems and operating programs of machines and equipment in enterprises This department directly manages the technical, technological and machine related

matters of the enterprise to ensure that the technical and technology related activities take place smoothly and efficiently.

Planning irrigation, electricity use plans for each season, for the whole year, through the Department of Planning - Finance, helping the Director submit to superiors for approval and organize the implementation according to the approved plan Directing the units directly managing (Member Enterprises, Stations, Irrigation Clusters) to implement the approved plan;

- Prepare system operation process and submit it to competent authorities for approval Operating the irrigation system according to the approved process;

- Operating the irrigation, water distribution and air conditioning systems by phone or computer to meet the requirements of timely production, storm and flood prevention and work safety, and limit waterlogging and damage caused by natural disasters to a minimum;

Legal Department:

The corporate legal department will help business leaders perform tasks such as: Participating in negotiations, negotiating important contracts of the business with business partners; appraise draft agreements, cooperation contracts, investment projects to ensure that they are not contrary to the law, the charter or have loopholes or legal errors that may lead to damage to the enterprise.

Enterprise legislation plays an important role in regulating and controlling legal activities in enterprises, including doing the following tasks:

Supervising and controlling the activities of the departments in the Enterprise that operate in compliance with the Regulations and internal regulations of the Enterprise Proposing legal opinions and appraising draft contracts drafted by other parts of the enterprise Before submitting to the Board of Members, Board of Directors, President of

the company, General Director, Director of the enterprise; Participating in negotiations and signing contracts.

Support the Board of members, the Board of Directors, the President of the company, the General Director, the Director of the enterprise to give comments on the draft legal documents sent by agencies and organizations for comments; summarize and evaluate the laws related to the production and business fields of enterprises.

2.4.4 Company service

2.4.4.1 Customer service

Customers are always the factor that every business is aiming for, because customers decide a lot to the revenue, profit or position in the market of the business Especially in today's growing economy, where customers have many choices for the same service, customer service plays a particularly important role If the business has good customer service, it will not only retain the old customers but also have the ability to attract new customers.

At the company, customer service is specific activities to deal with orders and contracts with customers; make the buying and selling process transparent It includes the following tasks: market research, identify market needs; develop customer service goals and plans; introduce and provide customer service, handle situations, maintain credibility with customers, Service quality depends on many factors such as: before, during and after dealing with customers.

2.4.4.2 Services of management and exploitation of irrigation works system

Water supply for daily life and socio-economic activities is the main and cross-cutting activity of the company Ensure water supply for irrigation and drainage for more than 100% of agricultural land in the area served by the Company.

Improve the management and exploitation of irrigation works to serve sustainable agricultural production and at the same time meet the requirements of socio-economic