báo cáo kiến tập INTERNSHIP REPORT

Establishment and Development of ABC Firm 1 point In this part, present some background information of the firm, establishment anddevelopment; some historical points of the firm during e

INTERNSHIP REPORT

At Hoa Binh Corporation

Student’s name: Đặng Hoài Nam Class: Advanced Accounting Intake: 53

Supervisor:

Hanoi - 2014

TABLE OF CONTENTS

ABBREVIATION

LIST OF TABLES

LIST OF FIGURES

PREFACE

CHAPTER 1: 1

1.1 1

1.2 4

1.3 5

1.4 6

CHAPTER 2: 7

2.1 8

2.2 10

2.3 14

CHAPTER 3: 15

3.1 16

3.2 27

3.3 28

CONCLUSION……… 30 REFERENCES

APPENDICES (if any)

SBV State Bank of Vietnam

VIDPB VID Public Bank

LIST OF TABLES

Table 1.1: 16

Table 2.1: 46

Table 2.2: 47

Table 3.1: 67

Table 3.2: 72

Chú ý:

- Chữ số thứ nhất chỉ tên chương

- Chữ số thứ 2 chỉ thứ tự bảng biểu trong mỗi chương

- Trong mỗi bảng biểu ghi rõ nguồn số liệu từ đâu

LIST OF FIGURES

Figure 1.1: 15Figure 1.2: .20

(Present introduction and structure of the Internship Report)

Chapter 1: OVERVIEW OF ABC FIRM (3 points)

1.1 Establishment and Development of ABC Firm (1 point)

(In this part, present some background information of the firm, establishment anddevelopment; some historical points of the firm during establishment and development;some achievements of the firms and others)

Hoa Binh Construction & Real Estate Corporation (Hoa Binh) was founded

on 27th September 1987 on the foundation of Hoa Binh Construction Office, started tooperate in designing and construction of a private residential projects Established in “DoiMoi” economic reformation period, Hoa Binh continually made great efforts to overcomedifficulties and reaffirm its capability Hoa Binh has grown into a top leading constructioncompany in Vietnam and well-known amongs foreign contractors with “Reach the peakspeacefully” impressive slogan Hoa Binh has developed a decisive and dynamicmanagement team together with 6,000 employees who have always devoted their technicalabilities, creativity and their utmost effort to the company Hoa Binh is also the onlyconstruction company in the South to be selected to participate in “VIETNAM VALUEPROGRAM” and achieve many valuable domestic and international awards In recently,Hoa Binh proudly contributed to completing 80 high – rise projects and is currentlycarrying out approximately 50 projects all around the country The following part willbriefly introduce the company’s development process from 2005 to now – reaching thepeaks

In 2006, Hoa Binh was officially listed on Ho Chi Minh City Stock Exchange and becamethe first general contractor participate in Vietnam Stock market This remarkable eventcreated opportunities for Hoa Binh to strengthen its position

In 2007, Hoa Binh increased capital through the stock exchange market, its investmentexpansion to the real estate field, as well as its cooperation opening to many strategicpartners in the construction and real estate fields such as Chip Eng Seng Group, CitadelInvestment Fund (Hong Kong Branch), HCMC Branch of Petro Vietnam FinanceCompany Also Hoa Binh has become a reliable partner for many big companies in thefield of construction and real estate, especially for foreign investors such as KTOM jointventure (a conglomeration of four big Japanese construction groups: Kajima, Taisei,Obayashi, and Maeda), Sino Pacific Company, Indochina Resort, Posco Engineering &Construction Company, Phu My Hung Joint Venture, and so on With these utmost efforts,Hoa Binh received many awards and prestigious titles, such as Vietnam Gold Star, StrongBrand Name in construction industry and Top Ten Vietnamese Brand Name

In 2008, the financial crisis and the subsequent global economic recession had a big impact

on Hoa Binh’s business operations Nevertheless, in such a context Hoa Binh learnt lessonsfrom experiences in risk management, financial management and investment projectsmanagement, minimize disruptive events and assure the sustainable development of theCorporation Hoa Binh performed many large-scale projects such as Hanh PhucInternational Women and Children Hospital (Binh Duong), Phu My Apartment Buildings(District 7, HCMC), Nam Long (District 7, HCMC), Can Tho International AirportTerminal, Truong Tho Apartment, Kumho Asiana Plaza (HCMC), Keangnam HanoiLandmark Tower, CRR & CR8 the Crescent Pool…

In 2009, Hoa Binh has also started implementing the ERP management software and the5S program to both parent company and all subsidiaries Major projects in 2009: SaigonPearl – Development (HCMC), The Kenton Residences Blocks G & H (Nha Be – HCMC),Mipec Tower (Hanoi), Habico (Hanoi), Green Hotel (Kien Giang), Vincom – Area B(HCMC) Hoa Binh was the only contractor to be selected participating in Vietnam Valueprogram and awarded Vietnam Gold Star, “Social Responsibility”, International StarAward for Leadership in Quality Management, Top 500 Vietnamese Private Enterprisesand many other awards.

In 2010, exceeding over 2000 enterprises, Hoa Binh once again honorably achieved the

“Vietnam Value” award for second time, Vietnam Gold Cup for Construction Qualityawarded to its 3 projects Besides, Hoa Binh rapid growth rate of revenue and profit, thecompany always orients to an ideal working environment Board of Managementconstantly takes care of employees by organizing travel trips in Da Lat, Nha Trang, MuiNe

In 2011, there is fluctuation of economy situation in the world as well as in the country andgives impacts on Hoa Binh business activities By experiences and appropriate strategies,Hoa Binh achieves many successes It successfully implements OHSAS 18001:2007 andISO 14001:2004 systems granted by British Standard Institute Also, Hoa Binh appliesCONQUAS international standard system developed by the Building and ConstructionAuthority of Singapore to assess project quality, B.I.M (Building Information Modeling)solution in design, construction management, and Portal Office software According tologic and professional management working to international standard, human resourcesand service quality will be improved more and more

In 2012: Hoa Binh celebrated the 25th anniversary and received the 3rd Class LaborMedal, the Chairman cum CEO, Mr Le Viet Hai proudly received the Prime Minister’sAward, and the company members honorably received the Award Certificate of Merit by

Ho Chi Minh People’s Committee Hoa Binh is proudly the only Southern ConstructionEnterprise continues to receive the 3rd Vietnam Value in the row and it is one of 25entrepreneurs to receive this honor certificate; Hoa Binh is one of two ConstructionEnterprises in HCMC honorably received the Certificate of Merit by Ministry of Labor –War Invalids and Social Affairs

The Company also successfully expands to Industrial and Infrastructure industry with 8projects which total value is more than 1,700 billion dong Besides that, Hoa Binh is fast –growing in North and Middle as well as the other provinces market

In 2012, Hoa Binh accomplished the last BI subsystem (Business Intelligent) of ERP, andHoa Binh is also the 3rd company successfully established the Business Intelligent in thecountry

1.2 Characteristics of the Business Operation of ABC Firm (1 point)

1.2.1 Functions and Responsibilities

The corporate has three main purpose and functions are the following

- Provide client with the best products and services in the most convenient andquickest way in the construction and real estate industry

- Set up the most efficient work environment in order to comprehensively developeach employee’s talent

- Completely satisfy all staffs’ needs and dreams, while bringing appropriate profits

to the Corporation and satisfactory benefits to the shareholders and contribute asmuch as possible to the country and society at the same time

In addition to determining functions, the corporate identifies its responsibilities in threesections: social, shareholder and employee responsibility The following part is the details

of such responsibilities:

- Social responsibility:

o Comply with Vietnamese legal regulations on labor force Respect theinternational conventions cited in part II of SA 8000:2001 and the relatedexplanations

o Frequently express concern to introduce upgrading of working conditions toour staff and workers and environment protection for the community

o Release all documents on the Social Responsibility Policy to all staff andemployees, including our subsidiaries, subcontractors, and suppliers, to helpthem understand and support the implementation of our policies

- Shareholder responsibility:

o The Board of Directors focuses on developing a strong management team inorder to secure and ensure transparency and responsibility while carryingout the tasks of the Executive Board of Management and managers, which

in turn contribute to building the shareholders’, investors’ and relevantparties’ confidence

- Employee responsibility:

o The Corporation has prepared and issued documents related to staff andemployees’ responsibilities regarding the Corporation and initiated trainingand orientation courses This is communicated via such media as its internalnetwork, website, bulletins and department meetings to guide all staff andemployees to fulfill the Corporation’s mission and policies Such policiesare focused on strengthening a sense of discipline to work in a positivemanner, and on encouraging persistence, honesty, integrity andresponsibility regarding the community, ethics, and professional conscience

1.2.2 Features of the Business Operation

The Company’s current principal activities are to provide industrial and civil constructionservices; surface levelling; construction consulting services; manufacture and trade ofconstruction materials, interior decoration products; house renovation and interiordecoration services; and to trade real estate

1.2.3 Process of Main Activities of Company

The main activity of the company is construction which is divided into 4 phases: signingcontract, planning, operation and handover

Process of Main Activities of Company

CONFIRM

PLANING AND PREPARE FINANCE DISTRUBUTE PLAN

REVIEW AND SELECT SUB CONTRACTOR

IMPLEMENTATION AND CONTROL OF CONSTRUCTION

TRIAL COMPLETE

QUANTITY SETTLEMENT

REVIEW AND WARRANTY FINISH

SUPPLY MATERIAL

SUPPLY HUMAN RESOURCE

SUPPLY MACHINES AND EQUIPMENT

OPERATING SAFETY INVIRONMENT

SUPPLY FUND PAYMENT PROFILECONDUCT

ORGANIZATIONAL AND

Phase 1: In the signing contract phase, in order to have a contract, planning and engineerdepartment have to prepare a profile to compete with other contractors If the ownerchoose the company, the BOD signs the contract so they have the authority to performconstruction.

Phase 2: The Board of Directors then hold a meeting with other departments to plan andprepare estimated fund for the project The general plan consist of categories: choosingsub-contractors, material plan, human resources plan, machines and equipment, safetyenvironment and finance

Phase 3: The BOD confirm the plans and distribute to involved departments A projectgroups is established and perform construction under the monitoring of a third partychosen by the owner

Phase 4: In the handover phase, the company conduct a trial a complete test to verify thecompletion of the construction If the test is confirmed, the company will hand over thebuilding to the owner Base on the time determined in the contract, the company willperform warranty regularly

1.3 Organizational Structure of ABC Firm (0.5 point)

(Present the organizational structure of the firm by the figure and then state the functionsand responsibilities of departments inside the firm)

Figure

Explanation:

1 Supervisory Board: On the basis of its extensive written and verbal reporting by theManaging Board issued promptly and in the necessary detail, the SupervisoryBoard supported the Board of Directors in its monitored the Board of Directors inits management of business over the fiscal year Basically, Supervisory Board hasthe authority to keep informed at all times of the intended business policy and otherfundamental issues and report to Shareholder Meeting

2 Board of Directors: The members of the Board of Directors which manages thecompany, have equal standing They and the CEO are represented on the Boardwith areas of responsibility that include their individual central functions The areas

of responsibility for the central functions are divided among the 14 members of theBoard of Directors

3 Advisory Board: the Advisory Board support the Board of Directors by its advisoryfunctions

4 The Chief Executive Officer (“CEO”) is responsible for leading the developmentand execution of the Company’s long term strategy with a view to creatingshareholder value The CEO’s leadership role also entails being ultimatelyresponsible for all day-to-day management decisions and for implementing theCompany’s long and short term plans The CEO acts as a direct liaison between theBoard and management of the Company and communicates to the Board on behalf

of management The CEO also communicates on behalf of the Company toshareholders, employees, Government authorities, other stakeholders and thepublic.

5 Board of Assistants and Secretaries perform routine clerical and administrativeduties They organize files, draft messages, schedule appointments for board ofdirectors, and support other departments

6 The Administration Groups consists of four departments:

- Administration Department design and organize the overall work performance ofthe company and manage of office environment It also has responsibility ofgathering, adapting, storing and distributing information within the company

- QA Department has the duty to give information of the company and answersaccording to staff’s questions They are required to answers on time

- Security Department provides and ensures an safe working environment foremployees

- Training Department prepares courses for new employees or increase humanresources quality in the company

7 Technical – Industry Group consists of four departments:

- R&D – Information Dept.’s primary function is to conduct research for newmaterials and develop new solution in construction

- ERP Department designs and implements ERP systems in the company

- IT Department is responsible for the architecture, hardware, software andnetworking of computers in the company IT professionals working in thisdepartment perform a number of duties to ensure that employees have full access tothe computer systems

- BIM Department creates collaboration through the entire life-cycle of assets,underpinned by the creation, collation and exchange of shared 3D models andintelligent, structured data attached to them In short, they models building andothers assets in 3D

8 The Business Group consist of three departments The main responsibilities of thegroup are to purchase, store and deliver equipment in need They are divided intoequipment types: materials departments, machinery equipment departments

9 Operation Group provide and ensure a safe and efficient environment in eachconstruction project They are technical department, maintenance department,surveyor department, HSE department

10 Investment Groups are subsidiary companies which specialize in producingproductions and material in construction industry The company are now havemajor share in five companies

11 Accounting Department maintains accounting information for finance departmentplans and control the funds They also prepare interim and annual financialstatements and managing materials and equipment

12 Human Resource Department is responsible for hiring members of staff; this willinvolve attracting employees, keeping them in their positions and ensuring that theyperform as expectation

13 Contract and Quantity Surveyor Department are responsible in applying contracts and concern with construction costs which includes cost planning and commercial management during the entire life cycle of the project from inception to

completion

14 The main functions of the Internal Audit Department are interacting with the Company’s governance bodies, the Internal Audit commission and the Company’s external auditors, auditors and affiliates; assessing the effectiveness of the risk management system and developing recommendations to improve the risk

management processes; consulting the Company’s management on the matters concerning its effectiveness

15 Marketing Department's duties are almost always tied to increase company images and reputation by guiding the company on which pricing, promotional strategies to use

16 Three representative offices were established to conduct marketing and other transactional operations in Hanoi, Danang and Kuala Lumpur

non-1.4 Financial Position and Operational Results of the ABC Firm

Table 1.1: Financial position of Hoa Binh company in 2011, 2012, 2013

Short term liabilities 2,472 3,560 3,679 0.04 0.03

Table 1.2: Income statement of Hoa Binh company in 2011, 2912, 2013

ITEM

(Billion VND) 2011 2012 2013 2012 vs2011 2013 vs2012

Gross profit 420 378 313 -0.1 -0.18

Net profit after tax attribute to equity

In 2012 comparing to 2011, the increase of goods sold makes gross profit decreased If thegross profit of 2011 was 13.7%, it fell to 9.3% in 2012 The main reason is that theconstruction of residential buildings, hotels and resorts was delayed or extended leading toincreasing costs On the contracting aspect, the company may claim for compensation ofdamages Certain other causes also accounted, such as the real estate market is in hardsituation, the investors slow down the progress that increases the contractor’s costs, thehigh revenue of nominal subcontractor, the bid price is low down due to drasticcompetition

In 2013 comparing to 2012, net revenue decrease only 0.15 times comparing to a decrease

by 0.82 times in net profit after tax It is because The Construction and Real Estate Sectors

in 2013 endured many hardships such as fierce competition, conservative declination inhousing price, the obstacle in term of credit for construction and real estate due tounrecovered trust of market and the Government’s limited support policies

Chapter 2: ACCOUNTING DEPARTMENT AND ACCOUNTING

SYSTEM AT ABC FIRM (4 points)

2.1 Accounting Department of the ABC Firm (1 point)

2.1.1 Diagram of accounting organizational structure