Company Profile with Accounting System of ICS Business Group

The prime objective of this report is to examine the performance of Disciplinary Action in Accounting System of ICS Business Group. Other objectives are discuss on the Real Estate environment of Bangladesh and evaluate the factors affecting performance of the Real Estate Company. Finally suggest some better ways of enhancing the performance of the Real Estate Company and review the Human Resource Practice of ICS Business Group.

Introduction

Real estate plays an important role in the business sector. Basically Real Estate Company ensures the basic needs of the people. Our beloved motherland has got its independence more than 40 years since now.  There elapsed quite a lot of time to develop the nation. But the modern life can’t ensure for the country man up to now. There are countries having been developed in a pace much faster than us although they were logging behind of us even some ten-twenty years ago. One of the reasons for their development in such a faster way is their capabilities to equip since & technology and its appliances in all spheres of their national life. So the most significant reason of our unclassified condition is that we could not adopt and equip the appliances of science & technology in the spheres of our lives as per the demand of the time.

The vital product of ICS Business group is the Pink City Xenovalley Model Town Ltd. So our most of the disquisition will be circulated biased on Pink City Xenovalley. It was established in the early 1997 and already the development work of a Satellite Model Town at the part of the Khilkhet Thana, Dumni Union, is in progress. The Pink City Xenovalley is designed with at a Joint-Venture with a foreign (Malayasian) Business Group named Xenovalley Malaysia SDN., BHD., for the development of Integrated Satellite township projects.

 

OBJECTIVES OF THE STUDY

This study is intended for providing me in valuable practical knowledge about real estate company operation system and their HRM strategy in Bangladesh. The prime objective of the study is to examine the performance of Disciplinary Action of ICS Business Group.

However, the specific objectives are as follows-

  1. To have a revelation on the Real Estate environment of Bangladesh.
  2. To accomplish the partial requisite of MBA Program and to achieve of good judgment with theoretical base.
  3. To evaluate the factors affecting performance of the Real Estate Company.
  4. To suggest the better ways of enhancing the performance of the Real Estate Company.
  5. To review the Human Resource Practice of ICS Business Group To review the disciplinary action practice of ICS Business Group

 

METHODOLOGY

I have used both qualitative & quantitative method for teaming up the data & information collected through primary & secondary sources. During my study I followed some methodology to find out the fact & feature of the Real Estate which are given as follows:

Area of study: My project is the “Disciplinary Action: ICS Business Group”.

Source of data/information: I have collected my data and information from the following sources, which helped me to make this report. The source has divided by tow parts.

  1. Primary source and
  2. Secondary Source

Primary source

It includes interviews & conversation with officers & executives of the Pink City of different divisions/department and branch.

Secondary Source

It includes annual report, disciplinary cases report, company service rule, company act. Selected books, journals & other publication etc.

 

A BRIEF HISTORY OF ICS BUSINESS GROUP

An over view of ICS Business Group

The enterprises of ICS first come into being in September 1993 incorporate as a private limited company named “Integrated Computer Service (Bangladesh) Ltd. in Bangladesh. It was started with the operations of computer systems like software development, hardware design, development and marketing. After achieving a significant level of success in its business, it expanded for launching a real estate company in 1996. The entrepreneurs behind this group are competent to withstand in fulfilling the demand of the current business necessities and thus welcome to diversify their business fields in construction Satellite Town in the name of XENOVALLEY MODEL TOWN (BD) LTD. XENOVALLEY HOLDINGS LTD. and some other associate ventures like DESIGN CARE, TRIOD COMPUTERS INC, ICS MULTIMEDIA etc.

ASSOCIATE CONCERNS OF THIS GROUP

To face the challenges of the new millennium it is not sufficient to live with the traditional betterment as are being provided within ICS Group rather they have to enhance the usages and utilities of our lives. Now is the question of doing thins considering the best utilization of the resources in the scale of time-out efficiency. At the aim of this new orientation ICS Business Group was formed by some dedicated entrepreneurs of this country. The Group by extending its business wings over home and abroad in now rendering its services on different disciplines. A brief overview of the concerns of this Group has bee mentioned next page-

Integrated Computer Services (Bangladesh) Ltd.:

Comprising with highly skilled computer professionals it involves in the field of Computer System Design & Networking, Software Systems Design & Development, Computer education etc. It has been working under a joint colloraboration with ADVANCE COMPUTER SYSTEMS INC, Texas, USA and also with another concern at Malaysia named ERA2000 COMPUTER SOLUTIONS SDN. BHD. Now it has been set up with the projects of software development and exports the west European and North American countries. A full fledged Computer Education School is in progress to generate the professional exports in the field of IT.

Xenovalley Model Town (BD) Ltd.:

It engages a group of highly skilled professionals for the development of Housing Complexes especially in urban areas. It expedites the construction of housing developments in rural areas of Bangladesh with some modalities like Model Villages, Satellite Towns, Parks, Casinos, and Resorts etc. It was established in the early 1997 and already the development work of a Satellite Model Town named The Pink City- Xenovalley.

  • Location: Dumni, Khilkhat, Dhaka-1229
  • Total Land area: 2000 Bighas of Land
  • Face: Face One, Two & Three
  • Types of House: Duplex, Triplex, Row house, Twin,
  • Facilities available: Green Trees, Pink City International School, Pink City International College, Pink City International Madrasha, Pink City International University, Field, Pink City International Hospital & Medical College, Moszied, Gorastan, Swimming Pool, Zimnasiaum, Market, Play Ground, Lack, Garden, Park, Wide Road, Own Generator facilities, Own water plant, Seven star Hotel, Communities Center etc.

Xenovalley Holdings (Pvt.) Ltd.:

The group is now significantly concerned with the pace of development of the country especially in the urban areas. The city areas are being developed coping up with the present limitations of our poor infra-structure. But it is significantly required to ensure sustainable infra-structure while developing the urban areas. This concern has been established to serve the city dwellers with the complete approaches of estate living. It has already managed the development and handover the some buildings. A mini-satellite town named Xenova Vizious Parks over approximately 300 bighas of land at Ashulia, Dhaka.

Pink City Food & Beverage Ltd.

It is the concern of this group which is engaged in production, distribution and marketing of different beverages and processed food especially the processed fruit & vegetable snacks. The technology and the machineries are originated partly from Germany and partly from Malaysia and Taiwan. This venture is committed to serve our seasonal fruits and some perishable vegetables to be preserved round the air without using preservatives.

Design Care Inc:

It deals with the planning and design consultancies for construction and development works of different projects. It has been running with highly experienced professional Engineers and Architects who quite conversant with various modalities of the constructions works. The fields of this concern is landscape, Architecture and Structural design and supervision of construction works and already it has successfully performed the complete design and planning of the Xenovalley Satellite Town and other real estate projects of this group.

Aims and Targets of the Group:

The Group is aimed to enhance the awareness level of the masses to adopt and utilize in practice the latest achievements of science and technology for their better living. It has been trying to develop the skill of the common people especially in the field of technology since inception. The main target of the Group is to utilize the resources with us efficiently. Incorporating all these targets of the Group of the Group has been summarized in following lines-

Group Overview:

ICS Business Group has been launched in the early nineties. It expedited the business opportunities in the filed of information and communication technology under the leadership as on IT professional of computer. Xenovalley come into being in 1996. It was incorporated as two limited companies. One in the name of Xenovalley Holding (Pvt.) Ltd. and the other Xenovalley Model Town (Pvt.) Ltd. in engaged in constructing planned townships at the suitable outskirt of the crowded city area. Soon the growth of total assets has been rise up to strong position in very short period.

Corporate Management and Human Resources:

The Group clearly has an dynamic and inspired management. Each of the Group operates as an independent entity headed by the Chief Executive Officer or Managing Director while overall strategic objectives and the corporate management committee sets financial targets. To achieve targets, the group employs highly qualified and well trained staffs. Each operating unit has its own human resources department, which is supported centrally by the Group’s Human Resource Department (HRD) at the corporate head office. The HRD is responsible for providing policy guidelines and systems to facilitate the recruitment, development and maintenance of a achieving work force.

Department of ICS Business Group Head Office-

  1. Administrative Department
  2. Accounts & Finance Department
  3. Sales & Reservation Department (SRD)
  4. Land and Legal Department
  5. Engineering Department
  6. Credit Reservation Department (CRD)
  7. Purchase Department
  8. IT Department
  9. Advertisement Promotion & Branding Department
  10. Security and Surveillance Department (SSD)

 

Department of Pink City Xenovalley Site Office-

  1. Administrative Department
  2. Sales & Reservation Department (SRD)
  3. Accounts Department
  4. Store Department
  5. Engineering Department
    • Civil Constriction Section
    • Finishing Section
    • Lands keeping Section (After Handover)
    • Road and Utility Section
  6. Maintenance Department
    • Grounds keeping Section
    • Lands keeping (Before Handover)
    • Cleaning Section
    • Swiping Section
  7. Safety Department
  8. Electrical Department
  9. Mechanical Department
  10. Security and Surveillance Department (SSD)

 

NUMBER OF EMPLOYEES:

Total Employees: 384

Corporate Office: 54

Pink City Xenovalley Model Town: 225

Pink City Food & Beverage Ltd.: 40

Xenovalley Holdings (Pvt.) Ltd.: 45

Design Care Inc: 10

Integrated Computer Services (Bangladesh) Ltd.: 10

 

FUNCTIONS OF ZONAL OFFICE

  • To monitor the performance of all Branches
  • To prescribe measures to improve performances of under performing concern member of the company.
  • To anticipate challenges, identify trouble areas and formulate line of action for upward growth.
  • To oversee marketing activities of the branches and to suggest measures for appropriate marketing strategies to face the market challenges and the competitors.
  • To motivate the employees and bring about healthy competition among them, to formulate plans in consultation with the concern managers for growth and development of the associate of the group.
  • To follow up the activities of national program of all associate of the group.
  • To keep constant watch over the performances and the achievements of business and profit targets by the company goal.
  • To undertake audit and surprise visit to the branches.
  • To suggest guidelines in commensurate with the corporate policies for lending operations.
  • To ensure profit maximize & cost minimize.

 

FUTURE PROSPECT

As a private organization ICS business group also thinking about the future challenges and opportunities. In according with the wants and needs of the customer of new millennium ICS group derived some future prospects which are given below:

  • Purchase Land in rural area and build up new project in the several area for there target people in Bangladesh like Chittagong, Coxesbazar, Sylhet, Gazipur etc.
  • They are taking steps to increase their present target groups by marketing their products in the target people.
  • To develop modern house and available all kinds of facilities for township program in the real estate.
  • Growth the key category.
  • Generate eco-home in the Xenovalley Model town.

 

RECRUITMENT POLICY

The Following shall be the recruitment policy of this company:

  • Appointment to all posts shall be made either by direct recruitment or by promotion.
  • The Managing Director or his authorized Officer, based on the recommendation of the concerned Selection Committee, shall make appointments.
  • Appointment shall be made at the minimum of the Grade but in cases where the person to be recruited possess additional experience or special qualification or both, the Selection Committee may recommend a higher initial pay in the same scale of pay or a higher initial pay in the same scale of pay or a higher grade. However all such exceptions have to be approved by the Managing Director.
  • No person shall be appointed in any post unless he is a citizen of Bangladesh.
  • A person selected for appointment in the service of the company shall not be less then 18 years of age and more then 50 years of age at the time of his appointment.
  • No person shall be appointed to any post on a permanent basis unless he submits a Medical Certificate of fitness from a Civil Surgeon or any other competent Medical Authority selected by the management for the purpose.
  • Active service shall commence from the working day on which an officer reports for duty at the place indicated by the company management before noon.
  • An employee, once separated by way of dismissal from service or terminated by the management shall not be considered for re-employment under any circumstances.

 

WORKING HOURS

Maximum working Hours (For Staff)

 DailyWeekly
General Hours0848
Overtime Hours0212
Total Hours1060

Weekly holyday any one day for site office and corporate office only Friday.

WAGES AND BENEFITS

Wages mean all remuneration including any other additional remuneration such as termination, death, retirement benefit etc. payable if the terms of employment were fulfilled.

Wages do not include:

  • The value of any house accommodation, supply of light, water, medical attendance or other amenities or services excluded by general or special order of the Government;
  • Any contribution paid by the employer to any pension fund or provident fund;
  • Any traveling allowance;
  • Any sum paid to the worker for special expenses entitled by the nature of his employment.

Wages include as per Bangladesh Labor Law 2010:

  • Any bonus or other additional remuneration payable under the terms of employment;
  • Any remuneration payable in respect of overtime work, holiday or leave;
  • Any remuneration payable under any award or settlement between the parties or under order of any court;
  • Any sum payable under this Act or any agreement due to termination of employment, whether by retrenchment, discharge, removal, resignation, retirement, dismissal or otherwise, and
  • Any sum payable due to lay off or suspension.

Responsibility for the payment of wages:

Every employer is responsible for the payment of all wages required by law to his workers.

Overtime work

Overtime wage paid at the rate of twice his/her basic wage +dearness allowance and ad-hoc or interim pay, if any. The formula of calculation of overtime wage is:

Wage Periods:

The employer shall fix periods for the payment of wages which is called “Wages Period”; no wage period shall exceed on month. The wages of every worker paid within seven working days from the last day of the wage period. All wages paid on a working day.

Deduction of wage for damage or loss:

Dedication can be made for damage or loss of goods or money caused to the employer by neglect or default of the worker.

Fines:

  • The total amount of fine not exceed 10% if the wages payable to the worker in respect of the wage period;
  • No fine shall be recovered by installments or after the expire of 60 days from the date of imposition;
  • All fines and all realizations shall be recorded in an a register and spent for the welfare of the persons employed.

Death Benefits:

After a continuous service of three years or more if a worker dies while in service, his/her nominee or in the absence of nominee, his/her dependant shall be paid by the employer-

  • A compensation for 30 days wage (Basic Wage) for every completed year of service, or for any part thereof in excess of six months or quarterly, if any, whichever is higher; plus
  • A compensation for 30 days wage (Basic wage) for every completed year of quarterly whichever is higher. (This compensation can be regarded as retirement benefit because the deceased worker would have been entitled to it, had s/he been alive.)

 

ACCOUNTING

INTRODUCTION

Accounting Section is the most important section of The Pink City Xenovalley Model Town Ltd. This section is performing most challenging task in ICS business Group as has to play an important role to Accounting policy. It also does some special activities like sales, customer’s dealings advertisement and son on. Accounting department of ICS business Group is carrying out task to achieve desired exchanges from marketing team. They are well organized team. Also they are planning and controlling collections, credit realizations for the purpose of achieving organizational goals and objective.

DEPARTMENTAL STRUCTURE

Accounting section headed by the GM (General Manager) and there are some DGM(Deputy General Manager), AGM (Assistant General Manager), Manager, Assistant Manager, Senior Executive, Executive and others staffs. Director Accounting & in-charge of accounting section of The Pink City Xenovalley Model Town Ltd.

 

ACCOUNTING OBJECTIVES AND STRATEGY

The Pink City Xenovalley Model Town Ltd. develops the accounting objectives at the planning period and tailor strategy for achieving its objective of the ICS Business Group are given below-

  • Developing software based accounting system by talley 9.00
  • Maximize audit satisfaction
  • Ensure proper systems of global accounting.
  • Engaged with direct supervision of CA firm.

 

DAILY WORKS OF ACCOUNTS DEPARTMENT:

Accounts department is very important department in any business institution. There are many transactions are made in accounts. Here the transactions recorded properly. The Accounts department of ICS Business Group does following works:

  • Pack of the correct vouchers according to the debit voucher and the credit voucher.
  • Record the transactions in the cash book.
  • Record the transactions in general & subsidy ledger
  • Prepare the daily position of sales collection, cash and bank.
  • Preparing the daily statement of payment of all the expenses of the group.
  • Record inter group fund transfer and providing accounting treatment in this regard.
  • Preparing monthly salary statements for the employee
  • Record the vouchers in the voucher register.

 

 

FINANCIAL AUDITED REPORT:

M.N. Islam & Company

Chartered Accountants

Xenovalley Model Town (Pvt.) Ltd.

Balance Sheet

As on 30th June 1012

Capital & Liabilities: Amount Tk.
Authorized Capital: 
5,000 ordinary Share of Tk. 1000 each5,000,000.00
  
Subscribed and Paid up Capital 
225 Share Tk. 1000 each225,000.00
  
Advance Against Sale1,666,973,306.00
  
Bank Lone22,763,566.00
  
Outstanding Lone Interest2,124,814.00
  
Sundry Creditors27,526,750.00
  
Liabilities for Expenses645,910.00
  
Total1,720,259,346.00
  
ASSET AND PROPERTIES  
  
Fixed Assets 
  
Intangible Assets:  
Preliminary Expenses97,500.00
Loan to integrated computer Services (BD)6,000,000.00
Loan Pink City food & Barbarize Inds. Ltd10,600,000.00
Loan to Mr. Md. Noor Alam2,000,000.00
Loan to Mrs. Samsun Nahar500,000.00
Loan to Xenovalley Holding (Pvt.) Ltd.1,190,000.00
Un Allocated Revenue Expenditure108,466,986.00
Work-In-Progress1,590,206,935.00
 1,719,206,935.00
  
Current Assets:  
Advance Office Rent50,000.00
Cash & Bank Balance760,025.00
 810,025.00
Total1,720,259,346.00

Date: February 18, 2013

M.N. Islam & Company

Chartered Accountants

Xenovalley Model Town (Pvt.) Ltd.

Work-In-Progress

As on 30th June 1012

ParticularsOpening BalanceDuring the YearTotal
2010-20112011-2012Amount (Tk.)
Land Purchase   51,906,500.00 10,085,000.00     61,991,500.00
Soil Piling & Land Development 586,379,300.00 99,235,500.00    85,614,800.00
Registration     8,664,231.00   1,411,900.00     10,076,131.00
Cement 155,259,264.00 93,155,558.00    48,414,822.00
Stone Clip   55,358,594.00 32,107,984.00     87,466,578.00
M.S. Road 165,014,698.60 95,708,525.00    60,723,223.60
Sand   39,551,090.00 22,939,632.00     62,490,722.00
Brick   48,643,793.00 28,213,399.00     76,857,192.00
Hardware Goods     4,109,187.50   2,383,328.00       6,492,515.50
Daily Labour   25,897,222.00 15,020,388.00     40,917,610.00
Timber   11,039,990.90   6,403,194.00     17,443,184.90
Carrying Charges     3,416,037.00   1,024,811.00       4,440,848.00
Bamboo     3,634,969.90   1,090,490.00       4,725,459.90
Sanitary & Sewerage     3,917,092.40   1,762,691.00       5,679,783.40
Other Materials     4,720,351.16   1,416,105.00       6,136,456.16
Design & Laboratory Expenses     3,797,335.00      379,733.00       4,177,068.00
Electricity     2,870,397.04      861,119.00       3,731,516.04
Electric Goods     1,824,209.50   1,003,315.00       2,827,524.50
Total 1,176,004,263.00 414,202,672.00 1,590,206,935.00

 

M.N. Islam & Company

Chartered Accountants

Xenovalley Model Town (Pvt.) Ltd.

Un allocated Revenue Expenditure

For the year ended 30th June 1012

Particulars2010-20112011-2012Total
Amount (Tk.)Amount (Tk.)Amount (Tk.)
Directors Remuneration   2,920,000.00   1,992,000.00    4,912,000.00
Staff Salary 21,564,000.00 4,500,000.00   6,064,000.00
Office Rent   1,728,000.00     180,000.00    1,908,000.00
Printing & Stationery      652,490.00       30,000.00       682,490.00
Traveling & Conveyance      929,363.00        45,350.00       974,713.00
Entertainment      747,640.00        35,780.00       783,420.00
Postage & Mail      302,435.00          8,350.00       310,785.00
Telephone & Fax      307,632.00        12,350.00       319,982.00
Rent & Tex        37,587.00          1,250.00         38,837.00
Legal Fee        48,000.00         5,000.00         53,000.00
Electricity Bill      459,469.00        25,450.00       484,919.00
Donation        89,100.00          3,500.00         92,600.00
Audit Fee        80,000.00       10,000.00         90,000.00
Business Development Exp.   4,509,800.00     125,000.00    4,634,800.00
Depreciation      368,712.00        43,100.00       411,812.00
Misc. Exp.      778,990.00        81,350.00       860,340.00
Festival Bonus      618,000.00        618,000.00
Overtime   3,757,500.00    512,300.00    4,269,800.00
Advertisement   3,068,065.00     3,068,065.00
Publication Cost      658,930.00        658,930.00
Photocopy Charges      119,900.00          5,120.00       125,020.00
Bank Charge        32,975.00          1,500.00         34,475.00
Office Decoration   1,515,350.00     1,515,350.00
Office Maintenance   2,631,720.00      195,320.00  2,827,040.00
Project Office Maintenance   3,101,690.00    162,340.00    3,264,030.00
Paper & Periodical      134,940.00     1,230.00       136,170.00
Training Expenses      872,750.00        872,750.00
Forms & Fees      105,600.00         5,000.00       110,600.00
Medical Expenses      515,300.00      112,350.00       627,650.00
Liveries & Uniform      217,060.00       21,000.00       238,060.00
Brochure, Designee & Diary   1,074,390.00     1,074,390.00
Hire of Equipment   9,045,400.00  1,012,000.00   0,057,400.00
Bank Interest 30,369,705.00  4,575,503.00   4,945,208.00
Research & Development   1,350,350.00        55,000.00    1,405,350.00
Balance Transfer to Balance Sheet 94,712,843.00 13,757,143.00 08,469,986.00

 

M.N. Islam & Company

Chartered Accountants

Xenovalley Model Town (Pvt.) Ltd.

Statement of Fixed Asset

As on 30th June 2012

Sl NoParticularsAs at 1st July 2011AdditionAs at 1st July 2012Rate of DepreciationDeprecationW.D.V. As at 30th June 2010
1Furniture & Fixture54908.0054908.0010%54908.0049417.00
2Computer & Printer34753.0034753.0010%34753.0031278.00
3Machinery & Equip.339401.00339401.0010%339401.00305461
4Electric Fan1938.001938.0010%1938.001744.00
  431000.00431000.00 431000.00387900.00

 

M.N. Islam & Company

Chartered Accountants

Xenovalley Model Town (Pvt.) Ltd.

Statement of Liabilities for Expenses

As on 30th June 2012

ParticularAmount Tk.
Salary375,000.00
Directors Remuneration166,000.00
Office Rent15,000.00
Telephone Bill1,029.00
Electric Bill2,121.00
Electric Bill Project71,760.00
Legal Fee5,000.00
Audit Fee1,0000.00
 645910.00

 

M.N. Islam & Company

Chartered Accountants

Xenovalley Model Town (Pvt.) Ltd.

Statement of Advance against SaleS

For the ended 30th June 2012

ParticularAmount Tk.
Balance From Last Year1,229,686,376.00
Add: During the Year437,286,930.00
Total1,666,973,306.00

 

CONCLUSION :

ICS Business group a name of fame in the economy of Bangladesh. First Duplex Eco Homes, Branded Food Items, Well known computer accessories & hardware product importer etc. of this the Account systems in this company play the vital role. The Pink City Xenovalley Model Town Ltd. has been marketing its product since 2005 and has been meeting country’s major demand of housing needs of reached people. Ping Food branded items marketed the company in 2010.