Industrial Training Report: Finance Training at Lime Korea (M) Bhd

This industrial training report details a student's experience at Lime Korea (M) Bhd., focusing on the finance department. The report covers various responsibilities, including preparing financial statements (profit and loss, cash flow, and balance sheet), managing GST returns, monitoring local debts, liaising with external auditors, and resolving accounts receivable and bank issues. The student's tasks involved gathering and analyzing financial data, ensuring compliance with regulations, and maintaining accurate records. The report also describes the company's background, the role of the industrial supervisor, and the learning outcomes achieved during the training period. The report highlights the practical application of financial concepts and the development of skills relevant to a finance career.

INDUSTRIAL TRAINING
REPORT

ACKNOWLEDGEMENT
I want to acknowledge some people without whom my industrial training and its report
could not have been finished successfully. First and foremost, sincere thanks to my college
mentor who always guided me at every aspect of my industrial training. Further, I want to thank
my industrial mentor who was there during the coarse of training, who make me aware about the
pool of knowledge. I would like to thank my friend, who helped me in compiling this report and
reflect the best of it. Last but not the least, a sincere thanks to my parents for always motivating
me to complete my tasks with utmost proficiency.

Table of Contents
ACKNOWLEDGEMENT...............................................................................................................2
INTRODUCTION...........................................................................................................................1
Objective of the report................................................................................................................1
Objective of Industrial training...................................................................................................1
Description of the report structure..............................................................................................2
Background of the company............................................................................................................2
DETAILS OF INDUSTRIAL SUPERVISOR................................................................................2
Learning Outcomes .........................................................................................................................3
Description of the task (1800).....................................................................................................3
Achievement of the task sets.......................................................................................................9
Limitations and recommendations.................................................................................................11
Weekly report / Log Book.............................................................................................................12
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................21
APPENDIX....................................................................................................................................23
Illustration Index
Illustration 1: Input tax credit..........................................................................................................4
Illustration 2: GST Filing.................................................................................................................5
Illustration 3: Website of Royal Malaysian Custom Department..................................................23
Index of Tables
Table 1: Details of industrial supervisor..........................................................................................2

INTRODUCTION
Objective of the report
Report plays an important role as it is a summary of the activities that has been learnt by
the student. An attractive work performed in the report shows how well the student has
undergone his industrial training. Hence, it is important for every student to write the report with
utmost care considering all the aspect through which he has undergone during his training. Every
student is requires preparing the report in the specific time frame and generate the report based
on the learning experience.
The report acts as an evidence that the student has gone in the training. Moreover, the
learning outcome can also be easily evaluated through the report. A student goes under four
months of industrial training and all the specific points, learning outcomes are jot down in the
report. The student can further use this report to revise the concepts and on the job training
experience whose outcomes can be delivered at the time of job interviews.
Moving forward, another importance of the report is that the student can record all the
activities that have been performed which can be referred in the future. It further proves that the
student have been able to learned perform the work that was taught to him during his training
period in the company (Green, 2014). If the student has undergone the training effectively, he
can very well prepare the report in reference to the tasks performed.
Objective of Industrial training
Industrial training is a program where the student is allowed to work for a company for a
specific time frame. The main aim of this training is to provide practical working environment to
the students. It helps in developing and enhancing the skills of the students and apply the
knowledge practically that have been learnt at college level. It helps in developing sense of
responsibility in to the student. Further, enhancing integrity, self confidence and discipline as
well in the nature of the student. It helps in preparing the student for his job that he will get at the
end of the college programme. Further, it acts as a guiding factor where he can understand his
own capabilities of performing a task.
Another objective of industrial training is to develop sense of teamwork and
communication skills in the student that help in making the student connected to the real
environment of the industry in which he is planning to go after graduation (Council, 2013). It
helps in inculcating the responsible behaviour in the student. The theories and concepts learnt in
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the lecture room can be applied while undergoing industrial training and the student is able to
learn practical aspect of it. It helps in the expansion of knowledge with respect to the latest
technology to conduct the task in the industry which makes it easy and convenient to perform the
task later. A student gets an open ground where he can explore himself with respect to the task
develop his mind set that he will be able to undertake this job for long term or not. He is able to
get a hint of his own abilities to perform a particular job (An, 2014). He is able to meet high rank
officials and manager, attend meeting and seminars which helps him to inculcate a decorum of
corporate sector. Moreover, a student is able to instil problem solving behaviour based on the
issued being incorporated during his internship. Hence, industrial training plays an important role
during the coarse of graduation which is compulsory for every student to attend for a specified
time.
Description of the report structure
Background of the company
Lime Korea (M) Bhd. came into existence in 23 December 2015 and incorporated in
Malaysia. The company is involved in supplying and manufacturing Lime products in Malaysia.
It further helps in providing and delivering environmental friendly solutions to it clients. The
Primary business line of the company is supplying lime products including, lime stone, calcium
carbonate powder, Calcium oxide powder, Quicklime and other products. All the products of
Lime Stone are certified by SIRIM, Malaysia. Lime is considered as most versatile chemical
which has proved to be suitable for steel industry, water treatment, agriculture, plastering etc.
The company is quite new yet have been able to make his own space in the industry.
DETAILS OF INDUSTRIAL SUPERVISOR
Table 1: Details of industrial supervisor
PERSONAL INFORMATION
NATIONALITY MALAYSIAN
MARITAL STATUS MARRIED
AGE 42 Years
GENDER MALE
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Years of Experience July 2004 - Current
COMPANY INFORMATION
COMPANY NAME LIME KOREA (M) BHD
POSITION SENIOR ACCOUNT OFFICER
Learning Outcomes
Description of the task (1800)
Being an intern with Lime Korea (M) Bhd., there are various services that are required to
be rendered. Hence, working in accountants department there were various responsibilities that
were necessary to be fulfilled, which includes,
Preparation of financial statements
Financial statement are the statements responsible to reflect the current financial position
of the company. The three basic financial statements are profits and loss accounts, cash flow
statement and balance sheet. Profit and loss account shows net income earned by the company
over a period. Cash flow statement indicates inflow and outflow of cash (Sikka and Willmott,
2013). In the end, balance sheet is prepared at the end of the year indicating entity's assets,
liabilities and net worth.
In order to prepare financial statements, it was important to gather all the relevant data
which was required to perform the activity. Hence, to prepare income statement which play
foremost importance, the responsibility was to gather all income and expenses through which are
incurred by the company. Considering all the rules and regulations stated in International
Financial reporting Standards (IFRS) different items are recorded in the books. These are further
responsible to generate the desired results (Kulikova, Garyncev and Goshunova, 2015).
In order to prepare cash flow statement for the entity, it is first required to collect all the
cash inflows and outflows being made by the enterprise. It helps in ascertaining that how much
cash is available with the company after completing all the cash transaction. The net flow is
generated through deducting all the outflows from the cash inflows. It also helps in stating that
how liquid the company is at a particular point of time (Armstrong, 2014).
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In order to generate balance sheet it is important to understand the concept of assets and
liabilities. Hence, it was the responsibility to segregate assets and liabilities present with the
organization from the pool of information. It also helped in assessing net worth of the company
at the end of 2017.
Preparation of GST returns:
Goods and services tax is required to be filled by the company at every company. It is
one of the biggest indirect tax reform present in Malaysia whose accounts are to be maintained
every year so that correct tax calculations can be made the authorities. The business which is RM
500,000 are required to get registered with Royal Malaysian Customs Department and file their
GST returns (Chen and Taib, 2017).
The responsibility of the intern involves assessing the taxable income as if the return is
not paid on time the entity have to pay the penalty as well. Hence, all the records and accounts
should be up to date in order to fill and GST returns correctly.
Further, keeping the track record of GST being collected from the customer is another
activity to be performed. As the difference of between the GST being paid and received is
extended as custom every year at the rate of 6%. Another responsibility involved applying for
input Tax Credit as he entity can demand some of the GST tax back from the department which
has already been paid on expenses and purchases. Further, assessing the input and output of tax
so that balance can be ascertained which is to e claimed after the filing of return.
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Illustration 1: Input tax credit
Source: Zainol, and Soon, 2017

Monitoring local debts
As the debtors of the company overdue the risk for its recovery become greater. Hence
another important activity for the company is to have credit control ensuring timely recovery of
the debts. In order to barricade the debts from becoming bad, it is important to perform different
important activities. Hence, the responsibility of an intern consists of the following:
 Maintain regular, appropriate and scheduled connections with the customers so that the
credit worthiness of the person can be judged. It helps in chasing the payment from the
customers effectively and on time as well.
 Reviewing the number of debts each months and taking appropriate actions for its timely
recovery (Sun and Luo, 2012).
 Gathering information about the debtors which includes, assess to their loans and credit
cards helps in identifying that whether the person will be able to make payments in the
given time duration of debt or not
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Illustration 2: GST Filing
Source: Shang, and Leng, 2014

 Maintaining the register and ranking the debtors based on their credit worthiness. It helps
in evaluating the amount of increase in bad debts and its probability.
Liaising external auditors
External auditor is responsible to audit the financial statements of the company and make
sure that all the rules and regulations issued in IFRS have been complied by the entity. The
primary objective of the audit committee is to help the board of directors in fulfilling their duties
with respect to accounting and financial reporting. Further, auditor complied with the auditing
standards issued by IFRS audit. Hence, the main responsibilities as an intern involved the
following:
 Coordinating time of their stay with them and making all necessary arrangements for
them in the office.
 Make all the books of accounts available to them so that they can effectively perform
their duty (Palil and et.al, 2013).
 To ensure that no pressure has been created on the auditors and their decision is prima
facie independent.
 Promotion of ethical practices and disciplinary culture so that misstatement and fraud
from the side of auditor and the company can be restricted.
 Promoting the enhancement of auditing role to endure safety of the records.
 Resignation and reappointment of external duty is also to be fulfilled by an intern.
Resolving accounts receivables and bank issues
Being involved in a company having numerous operations, it is important to resolve one
or the other issues cropping up in the organization. Hence, it is the duty of an intern to maintain
all the records so that it can be used to cross check the data at the time of emergency. The main
issue that arise in Lime Korea is resolving the matters related to accounts. There are few of the
times when the entry of the transaction is wrongly made in the books of accounts. It is important
to rectify those entries and make the inclusion in the appropriate account so that correct
treatment of the transaction can be made.
Another important responsibility involves solving the bank issues. Some of the customers
tend to make payment through cheques and these are to be deposited every week. Further, some
bank charges are deducted by the bank without intimating the entity. Taking clarification from
them and mentioning it in the books is another duty to be fulfilled by the intern. In this manner, it
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gets easy to ascertain the cash inflow and outflow in the bank account further adjusting all the
extra charges involved.
Monitoring CAPEX expenditure
Capital expenditure plays an important role as it helps in upgrading or purchasing fixed
assets to the company. It can be in the form of plants, equipments, property, machinery etc.
Excess of the expenditure in capital can lead to lack of funds for working capital requirements
disturbing the coarse of business. Hence, monitoring capital expenditure plays an important role.
The roles and responsibilities of an intern includes the following:
 Assessing that whether the investment in the particular asset will prove to be useful for
the company or not. It can be evaluated through calculation of Net present Value (NPV)
and Internal Rate of Return (IRR).
 Evaluating whether the company is in actual need of the asset or not or it may lead to
lying down of the asset abruptly.
 The expenditure must not exceed the income that is available with the enterprise so that
other aspects of the business are not hampered.
 Spot variances by continuous review of the financial summary of the entity.
 Budgetary planning is another method that is adopted by the company in order to initiate
an amount that can only be used for capital expenditure. The company is not allowed to
expand these expenses (Singh, 2016.).
Preparation of travelling analysis
A certain amount of expenses are compensated for the employees if they need to travel to
some other location for some time due to business reasons. The entity tend to compensate based
on the shortest route and duration. In this case, it becomes important to analyse their stay in other
state and what are the expenses that will be rendered by the company. A valuation sheet of travel
plan is made in order to assess the appropriate amount in this case. There are various things that
are taken into consideration while making travelling analysis. These are mentioned as below:
 Assessing for how many days the person was outside the state for business purpose
 For how many days the tour was actually planned
 Evaluating the shortest route for the travel.
 Assessing the duration of stay and expenses that can be borne by the company as which
as been made for the project purpose.
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 After the approval from senior HR manager the expenses are compensated to the
employee. Further, if it s declined by the HR then all the expenses are borne by the
employee himself.
Maintaining the register of fixed assets and apply depreciation accordingly.
Another important aspect of the company is to maintain the register of fixed asset hold by
the company. The responsibility is fulfilled by the intern working in the accounts' department. It
is necessary to ascertain the book value of the asset based on the salvage value and the number of
years the company can utilize the asset. In order to fulfil the requirement its is important to
assess the category of the asset and depreciation percentage being issued by the government on
that particular asset. The major responsibilities of the intern includes the following:
 Assessing the useful life of the asset.
 Evaluating the salvage value of the asset
 Assessing the depreciation category in which the asset will lie and ascertaining the
percentage of depreciation.
 Maintaining the depreciation account and ascertaining the amount of depreciation to be
deducted to calculate the book value of the asset.
 Keeping a record of depreciation transaction in order to avoid double entry in the books
of accounts.
Reviewing invoices prior payment
The company need to take care of the transactions for which the customer has already
made the payments. It shows that the payment has already been received in advance and the
products and services are not yet delivered by the company. For that matter, an intern is
responsible to maintain the books of accounts ensuring that the services will be rendered to the
person on the said duration. The intern has to review the invoices for which prior payments have
been made by the customer and confirm whether the delivery has been made or not (Green,
2014).
Ensuring the payments and receipts helps in further preparing the financial statements of
the company. Hence, it is an important activity performed by an intern during his coarse of stay.
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Achievement of the task sets
I being and student was very excited to join and learn from my first industrial internship
program. I have been studying theory about enterprises from past many years but this was the
first time when I experienced the internal environment of business. I was amazed to know that
organisation ave specific and determined process to avoid confusion and conflicts within the
employees and management. Moreover, I analysed that the internship helps me in gaining self
confidences and discipline while working at professional level. It helps me analyse my own
strengths and weaknesses which will further assist me in my personal and professional life.
Internship at Lime Korea helped me in recognizing various roles and responsibilities which can
individual should follow at its work place. There are various internal system which boosted my
knowledge and information regarding internal industrial processing. Apart from personal
development I learned to prepare financial statements in which I was only aware about the
maintenance and balance of balance sheet but there I learned that it is mandatory for all in the
enterprise to prepare three basic statements under financial statements which are, profit and loss
which demonstrate net income earned by the company. Further, accountant prepares cash flow
statement which helps the management in determining the inflow and outflow of the cash and
lastly the balance sheet which is prepared at the end of financial year which represents the assets,
liabilities and net worth of the specific firm. Moreover, I was not even aware about mandatory
compliance of companies with the policies and procedures implied by International financial
Reporting standards.
In addition to this there are many more internal industrial practices which helps the
organisation in meeting the challenges of external environment. For instance, I was amazed to
know the role of Goods and services tax for the Lime Korea. Further, it was exciting to
understand the role of GST regulation for the industries as it assist the firms in monitoring and
maintaining correct tax calculations (Gray and Murray 2011). Beside, I was not sure of attending
internship period because at day 1 I found everything very complex and hectic but with
continuous efforts of learning internal system, and processing made every session simpler and
easier for me.
The most important ting I learned at my internship at Lime Korea was to monitor local
debts to decrease the future risk. Monitoring debt on regular basis helps the firm in establishing
credit control and easy recovery of debts to minimize the risk of future loss. Apart from this, I
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