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Chapter-1

Introduction
1.1 Introduction

The growing role of energy sector in facitating and expeding economic,social


developmentbis now being recognized by most of developing countries.Energy is therefore
incorporates an important part of the growing business activity.This study content
includesthe overall activities of the company and use of those activities in gas sector. With
Socio-economic development of the country demand for energy is rising very fast.
Government is highly aware and active for increase of energy supply which is indispensible
for continuation of country's progress. Over the last five years, Government has
accomplished various infrastructure development and technical building in the energy sector
that is gas and coal sector. Exploration and production activities are primarily carried out by
the Petrobangla.Petrobangla (Bangladesh Oil,Gas & Mineral Corporation) is a goverment-
owned national oil company of Bangladesh.Petrobangla was founded in 1985 by merging
two goverment organization,Bangladesh Oil & Gas Corporation(BOGC) and Bangladesh
Mineral Development Corporation(BMEDC).Petrobangla explores,produces,transports and
sells oil,natural gas and other mineral resources.It also concludes production sharing
agreements with international oil companies for exploration and development of oil and gas
resources in Bangladesh. Petrobangla is responsible for overall corporate planning for the
gas sector. The relevant specific companies implement most of the investment plans but the
final decision and approval authority lies with Petrobangla. The national economic strategy
and the role of energy sector embedded in it guide the corporate planning of Petrobangla.
Petrobangla has formulated a plan that includes the whole range of activity from exploration
to marketing, taking in to cognizance both the public sector and private sector operators.
Petrobangla markets gas to various customers through its marketing companies. There are
now five marketing companies operating in their respective franchise areas. The companies
are Titas Gas T & D Company Ltd., Bakhrabad Gas System Ltd., Jalalabad Gas T & D
System Ltd., Pashchimanchal Gas Co. Ltd., Karnafuli Gas Distribution Co. Ltd. Over the
last five years gas production has been increased by 895 million cubic feet daily by
drilling/work over/production increased from 44 wells. Natural Gas is the most important
source of energy in our country as it accounts for about 80% of the total commercial energy
of the country. At present, about 37% of natural gas production is used as fuel for electricity
generation. Overdependence on the natural gas must be reduced as the present reserve is not
sufficient enough to support the country for long term economic growth. Overall, in long
term, an intelligent mix of the different available energy sources can enable Bangladesh to
ensure a sustainable economic growth of the country. Right conditions and framework at
policy and regulatory level is a must.

1.2 Origin of the report


Theoretical knowledge becomes fulfilled when it is applied in practical field. As such to
apply the theoretical knowledge in practical field the department of Business Administration
of Metropolitan University, Sylhet, has introduced an internship program as a part of its
BBA academic curriculum for its concerned students. Under this program each student has
to take practical training in a specific organization for three months so that they can know
how the theoretical knowledge can be applied in practical field. After taking practical
training she/he has to prepare a report assigned by the faculty supervisor of MU. In such a
state of the affairs I joined Jalalabad Gas T & D System Ltd (JGTDSL), Head Office, Gas
Bhaban, Mendibagh, Sylhet under the guidance of my supervisor Md. Afsarul Islam
Lecturer , Department of Business Administration , Metropolitan University, Sylhet. The
topic of my internship report is "Overall activities of Jalalabad Gas T & D System Ltd".
My experience involved with the overall work on Jalalabad Gas T & D System Ltd. So, I
have prepared this internship report with the mentioned topic.

1.3 Objectives of the study

The main objectives of the study as follows-

 To gather practical experience.


 To become acquainted with the functions and services provided by the
organization.
 To know their strategies for serving the customers.
 To study the Financing, auditing and reporting practices followed by the
JGTDSL.
 To study the legal framework of the company.
 To study the organizational set-up of the JGTDSL.
 To give a clear insight about the books, forms, and registers maintained in the
JGTDSL.
 To expose allstatements of JGTDSL.
 To identify the problems of JGTDSL.
 To submit an internship report on overall activities and procedures of my job.
1.4 Scope of the Report

The study report is prepared in term of the three months of internship program. I got the
opportunity to work as an intern inJalalabad Gas T&D System Ltd. So I decided to make an
internship report about "Overall activities of Jalalabad Gas T & D System Ltd"

1.5 Significance of the Report


Internship report is an important part requirement of BBA program of Metropolitan
University. As the parties, education institution and organization sustainability benefit from
such program. Recognizing the importance of practical experience, Metropolitan University
has introduced a three months practical exposure as a part of the curriculum of BBA program.
Internship program is the significant idea of learning, which gives us clear view of corporate
operation. And it may also give us the real corporate atmosphere for work before we get
introduce to the real job.

1.6 Limitations of the Study


Like any other study the limitations of this study is not out of questions. The study suffers
from some problems as below:
 Reluctance of JGTDSL in providing data on the plea of secrecy hampered concrete
analysis of reporting practices in some cases.
 There are needed enormous times to accomplish this internship program successfully,
but the allocated time 3 months.
 Unavailability of the reference books.
 Sometimes I could not take some relevant information from concerning officers and
employees because of their busy time.
 If I could take interview of more respondents, my study could be more truthful.
Chapter- 2
Company Overview
2.1 Background of JGTDSL

Jalalabad Gas Transmission and Distribution System Limited (JGDTSL /the company),a
public limited company,owned by Petrobangla is registered as a company with the Registrar
of Joint Stock Companies and Firms on 01 December 1986 under the Companies Act
1913(now the Company Act 1994)

With the completion of Hobigonj Tea Valley project, a program on Sylhet town gas supply
project was initiated by Petrobangla. On merging of the side two project in 1977, formal Gas
distribution on Sylhet town was started 1977with the implementation of Sylhet tea estate gas
supply Project-1, Sunamgonj town gas supply project, kailashtilla -Chhatak pipeline Project
and Chhatak town gas supply project, the Gas supply network recorded a significant
expansion in the region.

To meet the growing demand, Jalalabad Gas Transmission and Distribution System Limited
was formed on December 1, 1986 under the Ccompany Act with an authorized capital of
tk.150 crores .The objective was to help developing the socio-economic condition of the
people of Sylhet region.

The company has been playing an important role since role inception in reducing dependency
on imported fuel, saving of foreign currency and maintenance of ecological balance through
construction of pipeline, installation and maintenance of related facilities to ensure
uninterrupted transmission and distribution of gas throughout the franchise area.
2.2 Vision, Mission and Strategic Objectives of JGTDSL

 Vision:

Safe and efficient distribution of natural gas.

 Mission:

 Build our company into efficient, market driven, customer focused institution
with good corporate governance structure.
 Continuous improvement in our business policies, strategy, procedure and
operation through integration of technology at all levels.
 Provide natural gas to all areas and all socio-economic groups under company
franchise area.
 Strategic Objectives

 Enhancing Energy security as well as gas supply security.


 Enhancing efficient use of gas and its supply throughout the franchise area of
JGTDDSL.
 Improving HR for function of overall activities of the company.
2.3 Board of Directors

Muhammad AhsanulJabbar
Chairman Additional Secretary
Energy & Mineral Resources Division
Ministry of Power, Energy & Mineral Resources
Director Parveen Akhter
Joint Secretary
Energy & Mineral Resource Division.

Director Md. Aminuzzaman


Director (Planning),Petrobangla.

Director A T M Saiful Islam


Deputy Secretary
Labour& Employment Ministry.

Director Zanendra Nath Sarker


Deputy Secretary (Dev.-2)
Energy & Min. Resources Div.

Director Akramuzzaman
Deputy Secretary(Operation-2)
Energy & Min. Resources Div.

Director Khawja Ahmed


Managing Director
Jalalabad Gas T & D System Ltd.
Sylhet.

Director Barrister AbulKalam Azad


Director
Jalalabad Gas T&D System Ltd.Sylhet

Director Md. Saiful Islam


Jalalabad Gas T&D System Ltd.Sylhet.
2.4 Organogram of the Company
2.5 Customer services

 Gas pipeline contractor’s enlistment renewal form.


 Preliminary Consent Application Form for Industrial/Captive/ CNG.
 Application Form for Commercial Customer.
 Declaration of Property Ownership.
 Rules for domestic & commercial connection.
 Gas bill book issue from.
 Domestic/Commercial Application Form.
 Road Cutting Permission.
 List of Documents to be attached with the application.
 Gas Volume calculation Form for Office meter.
 Gas connection & bill outstanding enquiry form.
 Meter Reading Form.
 Defaulter list of domestic customer.
 Notice for defaulter customer.
 Final notice for defaulter customer.
 Second reminder notice for defaulter customer.
 Safety instruction for customer.
 One stop service desk form(commercial).
 One stop service desk form(Domestic).
 One stop service desk form(Name change/Burner Change etc.).
 Supplementary demand form.
 Important for commercial connection.
 Metered bill form.
 Gas connection information Card.
 Service line & Riser layout Map.
 Certificate of Gas Bill Dues.
2.6 Company Details

1. Name of organization : JALALABAD GAS TRANSMISSION AND


DISTRIBUTION SYSTEM LIMITED

2. Date of Incorporation : December 1, 1986


3. Head Office : Gas Bhaban, Mendibagh, Sylhet - 3100
Bangladesh.
4. Background : The enterprise is a Public Company limited by shares
registered under Company Act, 1913 on December 01,1986
and it is a subsidiary of Bangladesh Oil, Gas and Mineral
Corporation (Petrobangla).
5. Administrative : Ministry of Power Energy & Mineral Resources/
Ministry/Division Energy & Mineral Resources Division.
6. Company Business : The Company carries out transmission and distribution of
natural gas within the northeast part of Bangladesh, covering
the Sylhet Division consisting of the districts of Sylhet,
Moulvibazar, Hobigonj and Sunamgonj. Natural gas is
purchased from its associated companies viz. Sylhet Gas
Fields Ltd., Bangladesh Gas Fields Co. Ltd. and Titas Gas
T&D Co. Ltd. and sold to different categories of consumers,
Viz, Power, Fertilizer, Industrial, Commercial, Tea Estates,
CNG and Domestic.

7. Annual Revenue Earning : Taka 1006.35 Crore.


(2014-2015)
8. Annual Pre-tax Profit : Taka 151.19 Crore.
(2014-2015)
9. System Loss / (Gain) : .23%
(2015-2016, up to Apr- 2016)
10. Contribution To National : Taka 71.01 Crore.
Exchequer (2014-2015)
11. Debt-Equity Ratio : 3 : 97 (Standard Ratio 70:30).
(2014-2015)
12. Authorized Capital : Taka 150 Crore.
13. Gas Pipeline Network : i) Transmission Pipeline - 465.08 km.
(Up to April 2016) ii) Distribution Pipeline - 3,351.93 km.
Total - 3,817.01km.
(appox)

14. Sources of i) Sylhet Gas Fields Ltd. (SGFL)


Gas Purchase -From Kailashtilla Gas Fields and Horipur Gas Field for distribution
of gas to all categories of customers in Sylhet and Sunamgonj districts.
ii) Gas Transmission Co. Ltd (GTCL)
-From North-South pipeline (Fenchugonj) for distribution of gas to
different power stations in Fenchugonj
iii) Bangladesh Gas Fields Co. Ltd. (BGFCL)
-From Hobigonj Gas Field at Shahjibazar for distribution of gas to all
categories of customers in Moulvibazar and Hobigonj districts.
iv) Gas Transmission Co. Ltd (GTCL)
-From North-South pipeline (Munshibazar) for distribution of gas to
Kulaura, Juri and Baralekha..
v) Titas Gas T & D Co. Ltd. (TGTDCL)
-From Hobigonj-Ashugonj Pipeline (Madhabpur) of Titas Gas for
distribution of gas to all categories of customers in MadabpurUpo-
Zilla, Hobigonj.
15. Category Wise Gas Connection:
(Up to April 2016)
Sl No Category Nos. Of Connection
1 Power 14
2 Captive Power 110
3 Fertilizer 1
4 CNG 56
5 Industrial 102
6 Tea Estate 94
7 Commercial 1,695
8 Domestic (Burner)* 2,17,401
Total - 2,19,473
* Domestic Meter Nos.- 1379
* Domestic Non Meter Nos.- 99357

Total Domestic Connection- 100736 (appox)

 Power: Governmentand non-government organization that use natural gas to product


power.
 Captive power: The customer who product electricity to himself for using natural gas
is called captive power.
 Fertilizer: Government and non-government that use natural gas feedstock.
 CNG: Different type of customer who compress natural gas to supply various type of
vehicle are called CNG customer.
 Industry: In BASIC small and cottage industry ceramic, sanitary, electrical good and
other equipment thus product by their company is called industry.
 Tea Estate: Tea leaf freshness, process and other type of work are using natural gas.
 Commercial: Commercial customer pays the more value from the domestic
metercustomer. They generally use 16 hour.
 Domestic: In a residence for a family gas used flat rated and burner basis is called
domestic customer. Domestic customer pays 600/- TK for a single burner and 650/-
Tk. for double burner.
 Domestic Meter: This type of customer gas used as like as domestic customer but
their gas used showed by the gas bill payable as per as meter reading.

17. Gas Supply Areas - Jalalabad Gas Franchise Areas (Sylhet Division).

 Sylhet District - Sylhet Sadar, South Surma, Jaintapur


(Horipur), Fenchugonj, Golapgonj and
Beanibazarupo-zillas.
 Sunamgonj District - Sunamgonj. Chhatak&Doarabazarupo-
zilla areas.
 Moulvibazar District - Moulvibazarsadar, Srimongol,
Komolgonj, Kulaura, Borolekha and
Juriupo-zilla.
 Hobigonj District - Hobigonjsadar, Madhabpur, Nobigonj,
Chunarughat and BahubolUpo-zilla.
Chapter-3
Organizational Setup of Different Division
3.1 Organ gram of Finance and Revenue Division

Finance and accounts department is under the supervision of General Manager of Finance
who is qualified person and the revenuedivision is headed by a General Manager who is also
a qualified person.

 The organizational structure of the finance division is given in the following:


3.2 Functions of Finance and Revenue Division
The functions of finance and revenue division are summarized below:

 To maintain books of accounts and record therein day by day transaction of the
company.
 Preparation of annual income and expenditure statement and Balance sheet.
 Preparation of periodical financial statement of company.
 To carry out payroll and arrange payment of salaries and wages.
 To process bill for payment.
 To furnish various data to management for financial control.
 Preparation of budget and funds flow statement.
 Maintenance of capital account and revenue account.
 Maintenance of related accounts of fund of company.
 Maintenance of fixed and current assets and loans and related accounts.
 Preparation of the accounts related to provident fund, gratuity, poor fund group
insurance and benevolent fund and pension fund.
 Maintenance of accounts related to collection of charges on accounts of electricity.
 Maintenance of accounts related to granting loans and advance and its recovery or
payment to staff/workers.
 Assistance to internal and external auditor with supporting documents.

3.3 Sections of Finance and Revenue Division


In finance division, there are two departments:
1) Finance Department;
2) Accounts Department.

 The finance department has three sections such as;


1) Budget Section;
2) Store Section;
3) Bank & Cash Section.

 The Accounts department has three sections such as;


1) Fund Section;
2) Bill & Pay Section;
3) General Accounts Section.
The revenue division has two sections such as;
1) Central Revenue Section;
2) MIS Section.

3.4 Functions of department sections of JGTDSL

3.4.1 Functions of Budget section

Budget section performs the following functions:

 Prepare budgets for individual departments with the help of concerned Department
Coordinator Officer (DCO).
 Budget plan is expressed in quantitative, covering a specific period of time, usually
one year utilization of manpower and material resources.
 Budget represents estimate future costs of cash expenses and revenues.
 Every expenditure included budget register before preparing voucher as per respective
budgeted accounts head.
 Monitor budget, calculate variances and identify causes of major variances in
consultation with budget holders.

3.4.2 Functions of Store Section

The Store Accounts maintain and keep record all kinds of material in ledger book as well as
Software. The main functions of Store Accounts are:

 Receipts of incoming Material Receive Report(MRR).


 Inspection of all receipts.
 Valuation of the products.
 Storage and preservation.
 Identification of all materials stored.
 Material handling.
 Packing.
 Issue and dispatch.
 Maintenance of store records.
 Deliver the material to side office or work places by issuing Material Issue
Voucher(MIV) for future accounts.
 Inventory control.
 Preparing depreciation worksheet.
 Maintaining the schedule of fixed assets (Assets Register).
 Maintain L/C related documents.
 Recording Foreign and Local purchase matters.
 Analyze the MRR, MIV & MTV.
 Prepare Store Ledger Accounts.
 Record the work-in-progress.
 Provide journal voucher of related transactions.

3.4.3 Functions of Bank & Cash section

The Bank & Cash section is responsible for all type of bank and cash related activities. The
Bank & Cash section executes the following activities:

 Payment of bills authorized by Bill & Pay section.


 All transactions made by cheque.
 Receipt of cash against donation, various fees, and sales proceeds.
 Deposit of cash and cheques in banks.
 Withdrawal of cash from banks.
 Provide a short amount of money in various expenditure such as contractor, supplier
and customer purpose.
 Receive the VAT for contractor and suppliers.
 Maintain the JGTDSL's all the bank accounts.
 Maintain funds of the company by a numbers of bank accounts (STD Account/
Current Account) in whole service area in Sylhet division.
 The current accounts mainly collects fund from the STD accounts and makes payment
for employee salaries and other expense (subscriptions, scholarships).
 The STD accounts in every branch collects Gas Bill to Petrobangla, SGFL, BGFCL
and other third parties bill.
 The company has huge amount of idle money. As per Ministry of Finance regulations
the company lending the money FDR in six month basis public and private
commercial bank.
 Issues cheque for payment by the order voucher of account section.
 Prepare Bank Reconciliation Statement.
 Posting software ledger, the cheque details including payee name, purpose of payment
and the amount in company own software on the basis of issued Bank. After
completing month reconcile the ledger balance with bank balance.

3.4.4 Functions of Fund Section

The Fund section is responsible for handling the personnel facilities of the companies
employees. Fund section performs the following functions:

 The retired employee's final settlement as per pension rules are prepared and payment
is made by the fund section.
 Prepare financial statement of funds.
 Maintain gratuity funds, pension fund, welfare funds, provident funds (general
provident funds, contributed provident funds), and workers participation funds.
 Prepare vouchers and payment to employee’s welfare in case of their welfare loan and
different funds reserved amounts.
 Maintain the employee's group insurance.
 Keep all records regarding the employee's welfare loans payment, receipts due etc.
 Investing the funds reserved money, opening FDR accounts in different commercial
banks and maintain the accounts.
 Preserve all records relating to various functions performed by the section.

3.4.5 Functions of Bills & Pay section

Bills and pay section is responsible for maintaining office expenses like-entertainment bill,
advance payment to employee’s salary etc. Bills and Pay performs the following functions-

 Prepare all vouchers including cash voucher, bank voucher, and journal vouchers for
internal transaction, transfer or any other provisions.
 Make final payment to staff/officials in the case of registration, termination of
retirement etc.
 Meet up utilities bill like electricity, water, telephone, internet, faxpaper etc.
 Collect relevant information from HR and other department/sections on salary and
benefits, leave availed without pay, deductions etc. required for payroll preparation.
 Input all required information in the salary software.
 Prepare and check salary register.
 Advice banks to transfer net salary to individual staff.
 Prepare and check salary register.
 Maintain and preserve all records and information related to salary.
 Maintain the salary software.
 Keep the record of the employees’ personnel loan-computer loan, house building loan
and motor-cycle loan.

3.4.6 Functions of General Accounts Section

General accounts section is the heart of Accounts. The General Accounts section performs
the following functions:

 Control operation of JGTDSL bank accounts.


 Maintain effective operation of the computerized accounting packages.
 Posting all the vouchers with Accounts code number and voucher number.
 Prepare financial statements of JGTDSL at the end of fiscal year and preserve
hardcopies in file.
 Maintain consolidated financial statements on monthly basis.
 Reconcile inter department transactions.
 Maintain books, registers and documents required for smooth functioning of accounts
section.
 Co-ordinate Annual External Audit and work with internal auditors.
 Handling the company's tax and insurance related issues.
3.4.7 Functions of Central Revenue section

The Central Revenue section performs the following function:

 Total revenue collection from the JGTDSL's site office.


 Preparing bill against corporate clients.
 Handling the JGTDSL's corporate clients.
 Prepare monthly report on total gas sales and revenue collection.
 Maintaining the necessary register books.

3.4.8 Function of MIS section

The Management Information System (MIS) section performs the following functions:

 Keeping the record of the company's gas sale, gas connection- disconnection and
other necessary information's.
 Preparing monthly progress report.
 Preparing MIS report.
 After preparing monthly progress report and MISreport, send these report to
Petrobangla and all department/division head of JGTDSL.
Chapter- 4
Finance practice of JGTDSL
4.1 Finance Practice of JGTDSL

The company is a service oriented organization. Here finance practice is necessary not only
for recording of transaction but also for managerial planning and control. It is also necessary
for compliance with legal requirements.

Financial system may be either manual or electronic (computerized). My organization has


been using both manual computerized financial by using finance software.

4.2 Flowchart of Financial Systems

Financial system of
JGTDSL

Collection Source of Preparing Debit Credit Verifying the Vouchers


Document Journal

Internal Audit of the Vouchers Approval Posting them to different


vouchers models (AP,AR using
finance software )

Any Adjustment entries Trial Balance is Financial statement are


can be given any time prepared bythe also prepared by
software software

Closing Current years Expenditure through Post closing trial


revenue closing entries Balance is prepared
automatically

Posting opening journal


4.3 Financial structure

The company’s financial structure comprises:

 Equity capital, all of which are effectively owned by Petrobangla on behalf of the
government of Bangladesh, and
 Long term loan comprising of foreign and local currency loans.

4.4 Financial Management Policies and Procedures

4.4.1 General Purpose

The purpose of these policies is to establish guidelines for developing financial goals and
objectives, making financial decisions, reporting the financial status of the Agency, and
managing the Company funds.

4.4.2. Financial Responsibilities

It is the responsibility of the Board of Directors to formulate financial policies and review
operations and activities on a periodic basis.

The Board delegates this oversight responsibility to the Treasurer of the Board and the
Finance Committee of which the Treasurer is the Chair. This responsibility is shared through
delegation with the Company CEO and the Head of Finance.

The Agency CEO acts as the primary fiscal agent, implementing all financial policies and
procedures. The Company CEO, with oversight of The Finance Committee is responsible for
the coordination of the following: Annual budget presentation, management of the
Endowment and other fund investments, selection of the outside auditors, and approving
revenue and expenditure objectives in accordance with the Board approved long-term plans.

The Head of Finance with oversight by the Finance Committee has the day-to-day operations
responsibility for managing Agency funds, ensuring the accuracy of the accounting records,
internal controls, financial objectives and policies, financial statement preparation, and bank
reconciliation review and approval.

The Accountant is directly supervised by the Head of Finance and is responsible for the
preparation of the Chart of Accounts, Reporting Formats, Accounts Payable Processing,
Payroll input and Payroll processing, Cash Receipts input, Journal Entries for General Ledger
as well as Bank Reconciliations.

4.4.3 Conflict of Interest

Members of the Board of Directors are prohibited from activities that might present conflicts
of interest. The powers of directorship may not be used to personally benefit the Director at
the corporation’s expense. If a Director has a financial interest in a corporate transaction, the
Director must fully disclose the interest and abstain from voting. Loans to Directors are
prohibited.

4.4.4 Budgeting Process

The Company’s CEO, the Head of Finance, and the Treasurer shall be responsible for
presenting to the Finance Committee and other Board Committees an annual operating
budget draft sixty (60) days prior to the end of the fiscal year and thirty (30) days prior to its
submission to the Board of Directors.

The Finance Committee shall review and approve the recommended fiscal year budget
revenues, expenditures and cash flow, and submit it for approval to the Board of Directors.

The budget shall contain revenues and expenses forecasted by month. A chart describing
monthly cash flow shall be included.

4.4.5 Financial Statements

The Company’s financial statements shall be prepared on an accrual basis in accordance


with Generally Accepted Accounting Principles (“GAAP”).

The presentation of the Financial Statements shall follow the recommendation of the
Financial Accounting Standards No. 117, “Financial Statements of Not-For-Profit
Organizations” (SFAS No. 117).

Under GAAP, net assets and revenues, expenses, gains, and losses are classified based on the
existence or absence of donor-imposed restrictions. Accordingly, the net assets of the agency
and changes shall be classified as unrestricted, temporarily restricted and permanently
restricted.

Separate from Unrestricted Funds, resources for various purposes are classified for
accounting and maintained for each fund. Several funds are in place for this purpose
including but not limited to: Endowment Fund, Restricted Funds, Cash Management Fund,
Property and Equipment Fund, etc.

The Head of Finance shall prepare and present Monthly Financial Statements in a format
approved by the Company CEO and Finance Committee. The statements shall be presented to
the Company CEO, senior management, and the Finance Committee for review.

4.4.6 Cash Fund

A cash fund of one-quarter to one-third of the Company’s annual operating expenses shall be
maintained. When the fund balance falls below this minimum, the Finance Committee and
the Board shall develop a plan and budget for rebuilding it.

4.4.7 Audit

The company will have an audit of its financial statements annually, within 4 months of the
end of each the fiscal year. The audit shall be completed by a firm of Independent Certified
Public Accountants.

The Company CEO and the Head of Finance shall have direct responsibility in overseeing the
implementation of the Annual Financial Audit. The Audit Committee shall have board
oversight. In no cases shall the number of Board Members holding seats on the Audit
Committee be less than the number of agency staff and management.

The Company CEO and the Head of Finance shall recommend to the Audit Committee for
approval, the selection of a firm to perform the annual audit. In addition, the Audit
Committee 3 shall assist when necessary in the audit preparation, and report the final results
to the Board of Directors. A representative of the audit firm shall be invited to attend the
annual presentation to the Audit Committee, and shall be required to make a presentation to
the Board if the audit report is other than unqualified, or if the auditor's report material
weaknesses in internal controls or reportable conditions.

The Head of Finance or the Auditor shall prepare the Form 990 and it shall be reviewed by
the, the Company’s CEO, and the Finance Committee before submission to the IRS.
4.4.8 Revenue andIncome Procedures

The Company CEO in conjunction with the Vice President of Fund Development, and the
Head of Finance, develops and proposes revenue goals and objectives and submits them to
the Fund Development Committee prior to Board discussion and approval.

All contributions shall be recorded in accordance with GAAP, with specific attention to
standards FASB(Financial Accounting Standards Board) 116 and 117. Contributions are
recorded as pledged or received in accordance with FASB(Financial Accounting Standards
Board) 116, and must be credited to the appropriate revenue lines as presented in the annual
budget and coded with the appropriate account number as designated in the Agency’s Chart
of Accounts.

4.4.9 Expenditures Procedures

All expenditures shall be approved by the Agency’s CEO or a Vice President. All
expenditures shall be coded by account number using the Agency’s Chart of Accounts.

The Accountant maintains standard accounting records containing all aspects of the Agency’s
financial operations. They include but are not limited to:ageneral ledger, a check register, and
a payroll register.

Invoices shall be approved by either the Agency’s CEO or a Vice President. Following the
review and approval, check payment vouchers shall be prepared and the invoices shall be
distributed to the Agency’s Accountant for check payment preparation. Upon payment of a
bill, a copy of the check or duplicate of stub shall be stapled onto the bill and payment date
and check number shall be printed on the invoice. The paid invoices shall be filed
alphabetically according to company/individual name and shall be kept on a fiscal year basis
on file.

4.4.10 Signature Policy

The Agency CEO and the Head of Finance (two signatures) shall unless otherwise decided by
the Board, sign all checks, drafts, or orders for payment of money, contracts, and
commitments for services issued in the name of the Agency. In the absence of either
individual, the signature of the Chair of the Board must be obtained.
4.4.11 Compensation and Payroll (important point: ensure board approval
of CEO salary and salary ranges.)

Payroll is executed periodically. Paychecks or direct deposits will be provided to each


employee by the Accountant.

Monthly payroll expenses shall be verified by the accountant against payroll reports and
direct deposit reports and reconciled with checking account reports.

The compensation of the Agency’s CEO shall be determined by the Board of Directors or
their designees and CEO compensation is based on a board-approved process that considers
comparable data and CEO performance. The salaries of all other employees shall be
determined by the Agency’s CEO. Compensation ranges for all staff positions shall be
approved by the Agency’s CEO. No employee of the Agency may be compensated outside of
the approved range, without the approval of the Agency CEO.

4.4.12 Local Travel AndExpense Reimbursements

Employees must abide by the Agency’s Travel and Expense policy. Travel and expense
reports for mileage, meals, hotel, supplies, etc., will be maintained by each employee and
then submitted to the supervisor for approval and payment on a weekly basis by the
Accountant.

Mileage to and from the employee’s residence to the place of work will not be paid by the
Agency. Reimbursements will be based on the travel rate established by the Agency CEO and
the Head of Finance and approved through the budgeting process. Travel reimbursement shall
not be above guidelines.

All parking and other expenditure receipts must be attached to the expense voucher as a
condition for payment.

4.4.13 Purchasing

Any expenditure in excess of an amount determined by the Board of Directors for the
purchase of a single item should have bids from three (3) suppliers if possible. These bids are
reviewed by the Head of Finance and the bid award must be specifically approved in advance
by the Agency’s CEO and the Head of Finance. Purchase of less than the approved amount
may be made at the discretion of the Agency’s Agency CEO or Head of Finance without
competitive bids. However, for fixed assets, reasonable diligence should be exercised to
comparatively shop for available sources. Any purchase made by a Board member on behalf
of the Agency will require prior approval by the Agency CEO.

4.4.14 Leases and 0ther Contractual Agreements

The Agency conducts a major part of its operations from leased facilities. Leases and other
contractual agreements are negotiated by the Head of Finance and executed with the approval
of the Agency CEO. New leases in excess of an amount determined by the Board of Directors
require the approval of the Finance Committee. The Agency CEO and the Head of Finance
are authorized to develop and enter into contractual agreements with vendors, bankers, and
third parties for the purpose of ensuring the Agency’s general operations. The Finance
Committee shall review such agreements and make recommendations when necessary.

4.4.15 Bank Accounts AndInvestment Accounts

The Head of Finance shall maintain and oversee Bank and Investment accounts, and ensure
the Agency’s day-to-day financial operations. Several accounts may be maintained by the
Agency as follows:
 Checking Account
 Money Market Account
 Certificates of Deposit
 Brokerage Account
These accounts may be changed as the Agency’s financial conditions and requirements
change.

4.4.16 Checking Account

All checks, cash, money orders, and credit card deposits, are reviewed by the Accountant and
deposited in the appropriate Accounts. Fund raising events, foundations and corporate
donations and miscellaneous contributions, shall be deposited into the accounts. Money shall
be transferred from the cchecking account into the money market account or the investment
account when necessary, by the Head of Finance. Checks are written weekly to meet
obligations, or ongoing operational expenditures.
4.4.17 Bank Reconciliations

Bank reconciliations shall be completed monthly by the Accountant and cross-referenced


with the cash and receipts logs and the monthly Financial Statements. The Financial
Statements shall be compiled by the Head of Finance. The Statements shall be then reviewed
by the Agency CEO and presented to the Finance Committee.

All Bank Statements, Credit Card Statements, and Endowment Fund Reports will be
reconciled every month by the Accountant, and records will be kept in the Finance office.

4.4.18Cash AndCash Equivalents

Cash and cash equivalents include all cash balances and highly liquid investments with a
maturity of six months or less. The Agency places its temporary cash investments with highly
rated financial institutions. The Head of Finance shall closely monitor the balances of the
Checking account, Money Market and Certificates of Deposit accounts. At times such
investments may be outside of the FDIC (Federal Deposite Insurance Corporation) insurance
limit.

4.4.19 Investments Reports and Investments Policy

Investments shall be reported with the monthly financial statements at cost or market value.
The Agency CEO and Head of Finance, with oversight of the Finance Committee, shall
review and determine the general investment strategy for all funds.

The philosophy of the Agency’s short-term investments is safety of principal and liquidity.

Acceptable investments shall be: Certificates of Deposit and Bankers Acceptances rated A1;
Domestic Corporation Commercial Paper rated A1 and/or P1 by two (2) major rating
services; all short-term Securities of the U.S. Government or an agency thereof.

The Endowment Fund investment strategy shall be reviewed and evaluated by the Finance
Committee annually, to ensure the portfolio’s proper diversification, security and return on
investments.

All financial institutions shall be selected and approved by the Finance & Legal Committee
and must have long-term investment rating of A or higher by Standard and Poor’s, or a
compatible rating.
4.5 Maintenance of Necessary Books, Forms and Register
JGTDSL maintains the following books, forms and register for the purpose of recording and
analyse transactions and institute an internal control

4.5.1 Cash Book

In the company there has some cash transaction for receipts and expenditure and some
receipts and expenditure are made through Bank. Cash Book records all cash and bank
transactions. The transaction items are identified through a code system. The computerized
cash book is more informative than traditional cashbook. The cashbook provides cash and
bank balances at the end of the day. It also provides details of daily transactions and balance
of cash and bank account. So, it is one of the important books of accounts to record receipts
and expenditure.

4.5.2 Cheque Register

The cheque management system is used to enter the name of the of the payee, amount,
cheque number and date of the cheque. The system prints cheque, which is delivered to the
parties. A cheque register is printed which includes all relevant information of cheques issued
in a particular period. The register has a column for recipient's name and signature.

4.5.3 General Ledger

General ledger records both cash and non-cash transactions. The cash transactions are
automatically transferred to the general ledger book. Non-cash transactions are separately
entered through journal vouchers.

4.5.4 Store Ledger

Store Ledger Account is kept for recording all types of store items; how much items receipt,
issue and remain everything is recorded in this A/C book.

4.5.5 Personal Loan Register

This register books are maintained to keep record of the employee's house building loan,
computer loan and motor cycle loan.
4.5.6 Fixed Asset Register

This register is maintained for recording control and subsidiary accounts of all fixed assets
owned by the company, control accounts are maintained for trial balance preparation.

4.5.7 Work in Process Register

The register is maintained for recording expenditure incurred in respect of going projects.
Control Accounts are maintained for keeping project wise accounts while subsidiary accounts
are kept for detailed regarding of individual assets. Besides the above principal book the
company maintains a good number of subsidiary books for facilitating their preparation.

4.5.8 Salary Register

Salary is one of the largest parts of operating expense of JGTDSL.

4.5.9 Pay Slip

Pay slip portrays details of an employee's salary. Pay slip is prepared for the staffs, and the
officers of the company.

4.5.10 Voucher Forms

Voucher is the most basic document needed for recording financial transactions. JGTDSL
follows several types of vouchers:

 Debit voucher
 Credit voucher
 Journal voucher
 Material Issue Voucher (MIV)
 Material Transfer Voucher (MTV)

Debit voucher: Debit voucher is prepared to record cash and bank payments. This voucher
is alternatively called payment voucher.

Credit voucher: Credit voucher is to record cash and bank receipts. It is alternatively called
receipt voucher.

Journal Voucher: All non-cash transactions are recorded in the books of accounts through
journal vouchers. Provident fund, income tax and other deductions from salary, expense or
income transfer from department to another, depreciation on fixed assets etc. are recorded in
the books of accounts through journal vouchers.

Material Receipt Report (MRR): Material purchase for the company receives by Material
Receipt Report (MRR). After received, it is added to the remaining balance of the respective
material item with both of unit and value.

Material Issue Voucher (MIV): When the material is shifting to side office or work places
that times the store accounts deliver the material by issuing MIV for future account.

Store-in-Transit Register: Store-in-Transit Registeris kept to record the company's


foreign/local purchase information JGTDSL completes their final account on 30th June in
every year. Sometimes, the company advance for purchase materials. But the materials did
not reached in the company within the financial year. At this situation, the value of the
material has to remain in transit account.

4.6 Receipts

JGTDSL's receipts are broadly classified as:

 Sales of gas.
 Interest income.
 Non-operational.
 Operational income.

Receipts are accounted for through credit vouchers. Appropriate head in the respective
department is credited for receipt.

Income from gas sales: The actual income source of JGTDSL is gas sales. This company
sales its gas to different categories of customer; such as, commercial industries, CNG station,
Tea estate etc.

Income from non-operational: JGTDSL collects non-operational income from the


following sources:

 Sale of tender schedule


 Suppliers registration fees
 Sale of pipeline materials (customer finance)
 Sale of condensate
 Sale of gas bill books
 Testing charges
 Other rental income
 Penalty
 Miscellaneous income

Income from other operational sources: JGTDSL gets income from the sources:

 Minimum Charges against sanctioned loan


 Surcharge for the Late Payment
 Meter Rent
 Service Charge
 Connection charges
 Heating Value

The accounting entry for recognition of income is:

Bank.......................................................Dr.
RespectiveIncome Head.......................Cr.

Respective income head would include gas sales, service charge, penalty, testing charge,
meter rent etc.

4.7 Payments

JGTDSL's payment can be categorized as follows:

 Internal Payment
 Salary Payment
 Staff Final Payment
 Payment of other expenses
 External Payment
4.7.1 Internal Payment

Salary payment: Payroll is one type of largest payments that take place every month. And
this is one of the largest components of JGTDSL's annual expenditure. The bills & pay
section of Accounts department manages the whole process of preparation and payment of
salary.

Staff Final Payment: Final payment is made when a staff leaves JGTDSL by way of
resignation, termination, dismissal or redundancy. The staffs need to take clearance from
his/her department in-charge and other relevant departments to get final payment. The final
payment includes gratuity, provident fund, leave pay etc. If the staff has an outstanding loan
or other dues it is adjusted from the final payment.

Travelling and other payment: This includes payment of traveling allowance, local
conveyance, and overtime bill, daily allowance, entertainment, electricity, paper bill, and
other reimbursements. Employee's prepare their bills and get approval from their respective
departmentsheads. Then the bill & pay section makes payment. Accountant prepares payment
voucher. The voucher is approved by the head of accounts.

4.7.2 External Payment

External payments are usually made against purchase of goods and services. They include
office rent, fixed assets supply etc. The supplier/contractor, after performance of the contract,
submits bill to purchase department which approves the bill after necessary verification.

4.8 Bill Payment Procedure

JGTDSL maintains a system to bill payment. For the payment of any bill, the company must
take approval from the authority against bills.

Approval are two kinds:

 Administrative Approval.

 Financial Approval.

For passing a bill, at first, it needs to take administrative approval from the Managing
Director of the company. After getting administrative approval from the Managing Director,
then, it is needed to take financial approval from the authority for financially payment of this
bill.
4.9 Reporting Practices of JGTDSL

The reporting practices of Jalalabad Gas T & D System Ltd. are of two kinds i.e.
 Internalreporting
 Annual reporting
they are described below:
Internal Report:

Internal reporting is very much important for managerial decision. For the purpose of
managerial decision accounting data and information are supplied on monthly and quarterly
basis to the officials.

 Monthly MIS report.


 Monthly progress report.
 Monthly statement showing budget and cost center.
 Monthly sales.
 Monthly revenue collection.

Annual Report:

The company authority is under legal obligation to submit an annual report to the corporation
offer the end of every financial year. A scamming of the annual report to the company shows
that it contains the following:

 Auditors reports.
 Balance sheet.
 Statement of profit & loss and other comprehensive Income.
 Cash Flow Statement.
 Details of property, plant and equipment.
 Statement of budget variance analysis.
 Key performance Indicator.
AUDITOR’S REPORT TO THE SHAREHOLDERS

JALALABAD GAS TRANSMISSION AND DISTRIBUTION SYSTEM LIMITED

For the year ended 30 June 2015

We have audited the accompanying financial statements of Jalalabad Gas Transmission and
Distribution System Limited (the company), which comprise statement of financial position
(balance sheet) as at 30 June 2016, statement of profit and loss and other comprehensive
income, statement of changes in equity, and statement of cash flows for the year then ended,
and a summary of significant accounting policies and other explanatory information.

Management’s responsibility for the financial statements

Management is responsible for the preparation and fair presentation of these financial
statements in accordance with Bangladesh Financial Reporting Standards, the Companies Act
1994 and other applicable laws and regulations. This responsibility includes: designing,
implementing and maintaining internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatements, whether due to
fraud or error; selecting and applying appropriate accounting policies; and making accounting
estimates that are reasonable in the circumstances.

Auditors’ responsibility

Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with Bangladesh Standards on Auditing. Those
standards require that we comply with relevant ethical requirements and plan and perform the
audit to obtain reasonable assurance whether the financial statements are free from material
misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors’
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, we consider
internal control relevant to the entity’s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control. An audit also includes evaluating the appropriateness of accounting policies used and
the reasonableness of accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.

Opinion

In our opinion, the financial statements of the company, prepared in accordance with
Bangladesh Financial Reporting Standards, give a true and fair view of the financial position
of the company as at 30 June 2016 and of the results of its operations and cash flows for the
year then ended and comply with the requirements of Companies Act 1994 and other
applicable laws and regulations.

We also report that:

1) We have obtained all the information and explanations which to the best of our knowledge
and belief were necessary for the purposes of our audit and made due verification thereof;

2) In our opinion, proper books of account as required by law have been kept by the
company so far as it appeared from our examination of those books;

3) The statement of financial position (balance sheet) and statement of profit or loss and
other comprehensive income dealt with by this report are in agreement with the books of
account and returns.

Dhaka, Bangladesh

S. F. AHMED & CO.

Dated, 08 October 2015

Chartered Accountants
JALALABAD GAS TRANSMISSION AND DISTRIBUTION SYSTEM LIMITED

(A Company of Petrobangla)
MENDIBAGH, SYLHET
Statement of Financial Position (Balance Sheet) as at 30 June 2015

2015 2014
BDT BDT
1. Capital and reserve
Share Capital 704,816,200 449,194,100
Deposit against share (equity) 282,862,486 282,862,486
Capital reserve - 255,622,124
Revenue reserve 5,724,890,357 5,016,788,901
6,712,569,043 6,004,467,611
2. Non-current liabilities
3. Long term borrowings – unsecured
Local 53,629,476 63,495,476
Foreign 184,454,545 184,346,456
238,084,021 247,841,932
4. Long term liabilities – others
Security deposits-customers (cash and non-cash) 2,439,831,140 1,990,658,496
Retirement benefit obligations (gratuity) 3,675,963 3,607,073
Provision for leave pay 44,962,195 54,699,445
2,488,469,298 2,048,965,014
5. Total non-current liabilities (3+4) 2,726,553,319 2,296,806,946
6. Total capital employed (1+5) 9,439,122,362 8,301,274,557
7. Non-current assets
Property, plant and equipment 1,571,317,798 1,698,328,071
Capital work-in-progress 89,799,020 167,760,026
1,661,116,818 1,866,088,097
8. Investments and other assets
Fixed deposit receipt (FDR) 5,053,304,527 4,252,724,721
Loan to employees 333,080,055 232,680,416
Inter-company loans 194,172,600 194,172,600
Investment in shares 17,687,000 17,687,000
Security deposit of customers and contractors (non-cash) 1,729,642,000 1,465,946,449
7,327,886,182 6,163,211,186
9. Total non-current assets (7+8) 8,989,003,000 8,029,299,283
10. Current assets
Inventories 251,520,260 202,983,218
Advances, deposits and prepayments 2,980,825,610 2,597,296,580
Trade receivable 2,302,550,454 2,393,281,137
Cash and cash equivalents 1,064,603,254 324,040,084
11. Total current assets 6,599,499,578 5,517,601,019
12. Current liabilities
Gas purchase and price deficit fund 2,365,456,615 2,045,090,299
Gas transmission charges 43,948,168 45,291,671
BAPEX margin 15,525,831 21,924,313
Deficit wellhead margin for BAPEX 90,424,638 20,409,559
Gas development fund 101,479,898 122,202,382
Group current accounts 68,934,490 87,973,895
Creditors and accruals 358,731,324 336,292,733
Long term loan current portion 9,866,000 10,366,000
Workers’ profit participation fund 79,578,774 70,435,673
Provision for doubtful debts 6,099,148 5,502,734
Provision for income tax 3,009,335,330 2,480,136,486
13. Total current liabilities 6,149,380,216 5,245,625,745
14. Net current assets (11-13) 450,119,362 271,975,274
15. Net assets (9+14) 9,439,122,362 8,301,274,557
JALALABAD GAS TRANSMISSION AND DISTRIBUTION SYSTEM LIMITED

(A Company of Petrobangla)
MENDIBAGH, SYLHET
Statement of Profit & Loss and other Comprehensive Income for the year ended 30 June
2015

2015 2014
BDT BDT
1. Revenue
Gas sales 10,063,585,747 9,458,245,056
Other operational income 377,667,508 286,331,179
10,441,253,255 9,744,576,235
2. Cost of sales
Gas purchases 7,367,175,866 6,550,596,008
BAPEX margin 74,639,774 71,924,313
Gas development fund 443,779,624 422,202,382
Deficit wellhead margin for BAPEX 144,493,100 70,409,560
Gas transmission charges 201,427,842 223,304,648
Price deficit fund charges 507,201,395 908,940,500
Operating expenses 464,326,358 447,837,941
Petrobangla service charge 12,000,000 12,000,000
Bad debt expenses 596,414 552,788
Depreciation 143,605,006 142,486,335
9,359,245,379 8,850,254,475
3. Operating profit (1-2) 1,082,007,876 894,321,760
4. Non-operational income 47,212,852 50,449,490
5. Profit before interest and tax (3+4) 1,129,220,728 944,771,250
6. Financial income
Interest income 477,135,743 471,924,216
Interest expense (14,781,000) (7,982,000)
462,354,743 463,942,216
7. Profit before contribution to workers’ profit 1,591,575,471 1,408,713,466
participation fund and tax (5+6)
8. Provision for contribution to workers’ profit (79,578,774) (70,435,673)
participation fund
9. Profit before tax (7-8) 1,511,996,697 1,338,277,793
10. Income tax expense (529,198,844) (468,397,227)
11. Profit after tax (9-10) 982,797,853 869,880,566
12. Accumulated profit, brought forward 4,926,931,369 4,334,278,915
13. Prior years' adjustment for expenses 2,503,603 11,871,888
14. Profit available for distribution (11+12+13) 5,912,232,825 5,216,031,369
15. Appropriation Account:
Contribution to National Exchequer. (277,200,000) (289,100,000)
Accumulated profit, transferred to statement of financial 5,635,032,825 4,926,931,369
position
JALALABAD GAS TRANSMISSION AND DISTRIBUTION SYSTEM LIMITED
(A Company of Petrobangla
MENDIBAGH, SYLHET
Statement of Cash Flows for the year ended 30 June 2015

2015 2014
BDT BDT
A Cash flows from operating activities
.
Net profit after tax 982,797,853 869,880,566
Adjustments for non-cash items:
Depreciation 143,605,006 141,706,040
Provision for doubtful debts 596,414 552,788
Prior years’ adjustment for expenses 2,503,603 11,871,88
Operating profit before changes in working capital 1,129,502,876 1,024,011,282
Changing in working capital
Inventories (48,537,042) 14,489,688
Advances, deposits and prepayments (383,529,030) (447,151,613)
Trade receivable 90,730,683 (77,274,411)
Creditors for gas purchase and price deficit fund 320,366,320 66,659,413
Creditors for gas transmission charges (1,343,503) 10,414,939
BAPEX margin (6,398,482) (130,840)
Deficit wellhead margin BAPEX 70,015
Gas Development Fund (20,722,484) (7,718,050)
Group current accounts (19,039,404) 865,000)
Creditors and accruals 22,438,591 13,310,803
Provision for income tax 9,143,101 6,343,009
Leave pay 529,198,844 468,397,227
Payable for retirements benefit obligations (gratuity) (9,737,250) 3,219,343
Contribution to national exchequer 68,890 693,887
Net cash flows from operating activities (277,200,000) (289,100,000)
B Cash flows from investing activities 275,454,313 (238,510,970)
.
Increase in fixed deposits receipts (FDR) (800,579,806) (1,283,579,227)
Increase in employee loans (100,399,639) (40,070,229)
Acquisition of property, plant and equipment (16,594,739) (73,728,640)
Payments for capital work-in-progress 77,961,006 29,368,649
Inter-company loan - (25,500,000)
Net cash flows from investing activities (839,613,178) (1,393,509,447)

C Net cash flows from financing activities


.
Repayment of long term loans (10,366,000) (9,866,000)
Customers and contractors security deposit 449,172,644 324,730,051
Customers and contractors security deposit – non–cash (263,695,644) (257,911,727)
Foreign loan ERF 108,089 391,912
Share deposit 255,622,100 -
Capital reserve (255,622,100) -
Adjustments (24) -
Net cash flows from financing activities 175,219,158 57,344,236
Net increases/(decrease) in cash equivalents (A+B+C) 740,563,169 (550,664,899)
Cash and cash equivalents at the beginning of the year 324,040,084 874,704,983
Cash and cash equivalents at the end of the year 1,064,603,254 324,040,084
4.10 Users and uses of financial reporting of JGTDSL

Being an autonomous service oriented organization. The user and uses of financial reporting
of the company are very wide. The users and uses of financial reporting of Jalalabad Gas T&
D System Ltd. are summarized in the following:

Chairman of the Petrobangla:

 Chairman of the corporation uses the financial reporting for the purpose of major
decision.

Member finance:

 Finance and Accounting department is under the control of member finance.


 Financial reporting of the authority is mostly used by the member finance for
performance evaluation and managerial decision.

Chief finance and accounts officer:

 Chief finance and account officer used the financial report for performance
evaluation and decision making.

Government(Ministry of power energy and mineral resources of Bangladesh):

 Government is the external user of financial reports. Ministry of Bangladesh


government uses the financial reports of the company for the purpose of
development budget, loan sanctioning and other decisions.

Board of Directors of JGTDSL:

 The board of directors of the companyalso uses the financial reports.


Chapter-5
Knowledge Gained During BBA Program
I am a student of Bachelor of Business Administration(BBA).This program contains 12
semesters including internship.1st to 11th semester deal with educational activities, and 12th
semester requires internship.
As a student of BBA program,I gained a variety of knowledge through the class lectures,text
book,assignment,presentation,class test,quiz,viva,exams etc. While concluding my internship
in JGTDSL,some of this knowledge was very helpful which Iapplied in my internship.
During my internship,I found this knowledge very essential for practical professional life.

5.1 Principles of Finance

As a student of Finance,I can see lots of things how these courses applied in company.

Finance is a study, that describes how to collect funds at minimum cost and utilization of
those funds at maximum return.The key point of finance is the time value of money,which
refers to A Currency Today Is Worth More Than A Currency Tomorrow. Finance related
courses basically helped me by the following ways-

 In JGTDSL,all ratios like current ratio,quick ratio,receivable turnover,profit


margin,Earnings Per Share(EPS) etc. I learnd from Finance related courses.So it was
easy to understand,how these courses are applied in JGTDSL.
 In Finance course,I learned about deposites, loans, accounts etc.
 When I joined the JGTDSL,I wrote many cheques,bills.I learned how to write
different cheques like bearer cheque, crossed cheque etc.

5.2 Principles of Accounting

In the Accounting courses,I broadly understand the accounting system and procedures of my
organization.The Accounting is essential to business,and has been called the ‘Language of
Business’ because it is the means by which business communicates their activities to
investors,creditors and other stakeholders.

Accounting that provides information to people outside the business entity is called Financial
Accounting.

Cost Accounting is the process of collecting,analyzing,summarizing and evaluation various


alternative courses of action.

Management Accounting is concerned primaryly with providing a basis for making


management or operating decisions.
 In my Company,all the transactions are maintained by double entry system,which I
learned broadly in my accounting related courses.So it was very easy to
understand,what side should be debit and what side should be credit,when a
transaction is occurred.
 I have learned different types of statements in my Accounting courses,those
knowledges gave me an advantage in making the Journal,Ledger,Trial Balance and
Balance Sheet of JGTDSL.
 Bank reconcile is an important segment in any organization,The intermediate
Accounting course helped my to understand the Bank Reconcilation of different
sections of JGTDSL.

5.3 Principles of Marketing

In the BBA program, I have completed two courses of marketing named ‘Principles of
Marketing’ and ‘Marketing Management’.These two courses teach me how to behave with
clients/consumers that I performed my internship.Marketing courses basically helped me by
the following sectors-

 In marketing courses,I broadly learned that every business or organization has some
products or services.So when I joined JGTDSL,it was very easy to me to find out
what kind of services are available in JGTDSL.
 I learned about different types of customers in my academic courses.As JGTDSL is a
different types of organization, its customer category is also different.

5.4 Principles of Management

In this course I have learned about different management principles e.g


planning,organizing,leading,controlling.Having a firm grasp of the principles helped me
analyzing the issues the planning dept. faces,the chain of command,and the alternative
courses of actions etc. The management courses helped me by following ways-

 In my academic courses,I learned deeply how to manage human resources,how to


motivate their performance etc. So when I was joining in JGTDSL,I saw that there
were so many types of motivation program,trianing program arranged by managing
committee.My academic knowledge here to understand the main objective of those
programs.
5.5 Principles of Economics

The theory of supply and demand is an organizing principle for explaining how prices
coordinate the amounts produced and consumed.The law of demand states that,in
general,price and quantity demanded in a given market are inversely related.That is,the
higher the price of a product,the less of it people would be prepared to buy of it.As the price
of a commodity falls,consumers move toward it from relatively more expensive goods.

5.6 Organizational Behavior

The course named ‘Organizational Behaviour’ was included in the syllabus of BBA
program.Organizational Behavior is a field of study that investigates the impact that
individuals,groups and structures have on behaviour within an organization.This course
helped me on developing an understandung of practical implications of various theories of
human behaviour at work.This course also helped me identifying the various personality
traits through observation and dealing in a appropriate manner with them,working as a team
member.This course played a vital role in my internship.This course taught me-

 How to behave formally within an organization.


 How to express feelings in an organization.
 Leadership,motivation,teamwork.
 Different personality issues.

5.7 Business Communication

The study of Business Communication teaches me about the communication channels,how to


interact with customers,negotiate with suppliers etc.I applied that knowledge to understand
the communication channels of JGTDSL.

5.8 Business Research

The Business Research course has been the most useful course while preparing this
report.Right from the observational study,collecting primary data,analyzing secondary
data,taking formal and informal interviews Business Research course has helped throughout
the whole period.Following the ways in which I got benefited the most-

 Data collection (Primary & Secondary).


 Selecting relevant and legal data sources based on the purpose of the report.
 Maintaining the proper guidelines of the report.
 Filtering and interpreting the collected data on the basis of need.
 Using right information in right place.

5.9 Banking and Insurance

The course Banking and Insurance is an important course in Finance.I learned many
important things from this course and I applied my academic knowledge acquired from BBA
program.I also knew about the loan and advances from the course.I also learnt the types of
cheque,features of cheque which was very essential information for me,as an intern.I learnt
the apparent tenor of a cheque which are date, sum payable(both in fig. and
word),signature,payee.Without these four things cheque are not be considered as valid.I
applied these knowledge in JGTDSL while writting cheques.

5.10 Computer Application

During the BBA program we had a course named ‘Introduction to Computer’,where I


learnt to use different types of computer applications.Besides this course during BBA, I learnt
to use different types of computer applications and softwares from our teachers like- MS
Excel, MS Word etc.These helped my tremendously in my internship period.

Deviation of Practical Working Experience from Theory

Theoretical knowledge is only the bookish knowledge and practical knowledge is the
implementation of that theoretical knowledge in the working place.

In working place I didn’t get a huge deviation between theoretical and practical knowledge.

In the time of studing, I thought that the activities are more difficult but when I was in
internship for three months,though I felt difficulty at first but after a few days,I realized that
practical knowledge is easier than the theoretical knowledge.Practically,I could complete
almost all the task easily.
Chapter-6
Each Task Completed During Internship
Program
6.1 Nature of The Job

Working in JGTDSL as an intern was the very first opportunity for me to acquire practical
knowlegde about company.I joined my internship on 1st Sep,2016. It was a tremendous
journey for me to go through the actual experience of company.

As an intern of JGTDSL,I had experienced of so many new things. I came to know actual
works of company officers and observed how the works are being done according to serve
the public properly.

6.2 Overview of JGTDSL

Jalalabad Gas Transmission & Distribution System Limited (JGTDSL).


Gas Bhaban,Mendibahg,Sylhet-3100,Bangladesh.
E-mail Address- md@Jalalabadgas.org.bd
Website Address- www.jalalabadgas.org.bd
Phone No. 0821-717092,
01711-401557
6.3 Specific Responsibilities of the Job:

During my internship period I got a chance to do work on Bill & Pay Section,Bank & Cash
Section.

During my intern period, I have learned about the necessary documents which are related
with bills.The duties I have performed are given below-

6.3.1 Filing
Filing all types of documents including individual documents of each employees, utility bills
etc.
6.3.2 Preparing vouchers
Prepare all vouchers including cash voucher, bank vouchers and journal vouchers for internal
transaction, transfer or any other provisions.
6.3.3 Utilities bill payment
Meet up utilities bill like electricity, water, telephone, internet, newspaper, fax paper etc.

6.3.4 Client data entry or edit in software

Input all the required information of clients in software.

6.3.5 Registering

All kind of bills recording in register book which includes the bills of parties and employee’s
TA/DA bills. Separately recording the vat, tax and net amount of bills.

6.3.6 Bank Reconciling

Matching the amount of balance remaining in our bank account with our office ledger.

6.3.7 Posting in ledger

Posting of employees’ medical allowance, festival allowance retirement allowance etc. in


ledger.

6.3.8 Scanning of different documents

Scanning different types of documents.


Chapter:7
Findings, Recommendations and Conclusion

.
7.1 Findings

 The company create a large number of employment facilities for own country
citizens.
 The company maintains Corporate Social Responsibility (CSR). During the FY 2014-
15, the company had a budget allocation of Tk.30.00 lac for Corporate Social
Responsibility (CSR) of which, a total of Tk. 13.00 lacwasspent for financial
assistance to different religious, educational and autistic institutions during the year
under review.
 The JGTDSL follows several Finance related software's to perform their daily
activities and periodic financial reports. They use software against salary, inventory
and financial statement related works.
 The JGTDSL maintain its accounts with eight sections, because of its complicated
system sometimes it causes hamper to prepare financial report properly.
 Earned a high amount of interest from ideal money and public bank got priority to
collect FDR from the company ideal money.
 Net profit after tax is increased in both financial year, balance transferred to the
balance 5,635,032,825 and 4,926,931,369 are simultaneously.
 Net asset is increases in financial year 2015 and 2014, which is 9,439,122,362 and
8,301,274,577.
 Net profit before taxes is increasing in current financial year.
 Manpower shortage in one of the major problems of Finance & Accounts department.
 JGTDSL maintain both manual and computerized systems to perform its regular
activities.
 The JGTDSL maintain its register books (TA/DA register, utility register, cheque
register, loan register, final settlement register, miscellaneous register etc.) manually
which is very time consuming, risky and too much hard work to find out the different
categories of these register books.
7.2 SWOT Analysis

SWOT analysis is a strategic planning tool to evaluate the strengths, Weaknesses,


Opportunities and Threats involves in a project or business venture. It involves identifying
the internal factors that are favourable and unfavourable to achieve the objectives. The aim of
the SWOT analysis is to identify the key internal factors (Strengths, Weaknesses) which are
controllable and external factors (Opportunities, Threats) which are uncontrollable. SWOT
analysis of the project is given bellow.

A) Strengths

 Existing manpower are very expert.


 Provide core service to the customer.
 Higher economical value.

(If consumers are willing to buy a good, it implies that the customer

Places a higher value on the good than the market price)

 Socio- economic development.


 Use of locally produce pipe than foreign.
 State owned company.
 Government got a large amount of tax.
 Public Bank got priority to collect FDR from the company ideal money.
 Contribution fund to national exchequers.
 Profit distribution to intercompany employer.
 Create a large number of employment facilities for own countries citizens.

B) Opportunities

 Increasing number of consumers.


 Exploration of new gas field in Sylhet area.
 Large number of CNG filling station.
 Supplier Company very near.
 Profitable company.
 Improve net profit margin.
 Interest earned ratio is very higher.
 Government policy.
 Monopoly market.
 Large market area.
 Geographical location.
 Got available fitting materials locally with cheap price.
 Coverage/Provide gas different large industry.
(Such Tea Estate, Power plant, Lafarge Cement Factory, Fertilizer industry, Ceramics
factory etc.)

C) Weaknesses

 Lower rate of return.


 Rising cost of goods sales.
 Interest coverage cost in increasing.
 Project cost is higher than the benefit.
 Long transmission line.
 Machinery is expensive.
 Maximum machinery has to input foreign country.
 Has to provide large amount of transportation cost.
 Has to empower foreign engineer.
 Fund collection period is very weak.
 Current and quick ration is decreasing than previous year.
 Higher budget expenses.

C) Threats

 Exchange rate movement


 Natural disaster.
 Non-available of materials
 Declining natural resources
 Alternatives product of fuels.

7.3 Recommendations

 Fund or service collection period should be shorter.


 To make control functions effective in the JGTDSL the number of qualified and
trained personnel should be increased to the optimum.
 Proper training should be conducted for the executives to improve their professional
standard. As a result, they will be able to perform their activities in a more efficient
way.
 Legal system should be made adequate and quick in order to deal with the problems
of overcome.
 The board of director of the company should come forward to ensure good
governance through transparency and accountability.
 In order to ensure transparency in financial transactions JGTDSL should develop
procurement guidelines to ensure optimum usage of company's financial resources.
 JGTDSL should install more financial software's and other necessary software's to
make its activities moreeasier than before.
 More upgrade PC should be given to the company accounts for better functioning.
 Luxurious budget should be minimized.
7.4 Conclusion

From the preceding discussion it is clear thatoverall system has over the years and has now
taken a concertshape. The authority has put in efforts to modernizes the system. Demand for
the natural gas is increasing day by day from the different sector of the society. So, there is a
strong need for transmission and distribution system to transmit and distribute gas from
natural sources to fulfill demand and Jalalabad Gas T & D System Ltd. plays a crucial role in
it. As the JGTDSL is state owned, doing monopoly business in Sylhet divisional area. The
company is growing profit in every fiscal year and growing contribution to national
exchequer, also rising the total capital employed. In the Finance and Accounts department of
JGTDSL go through planning to investment for short-term FDR, all kinds of companies and
project revenue collection, issuing cheque for customer and companies different kinds of
expenses, maintain cash inflow and outflow, making budget for internal expenses,
maintaining s store ledger an preparing required financial statements.

Throughout the report, I tried to introduce Jalalabad Gas Transmission and Distribution
System Ltd. and the overall activities of the JGTDSL. For doing this report, I can relate my
theoretical knowledge to practical work. It was an honor for me that I have worked as an
intern in a reputed organization like Jalalabad Gas Transmission and Distribution System Ltd.
Finally, I think this report will help to know the Jalalabad Gas Transmission and Distribution
System Ltd. and financial system of the company.
Appendix-1

Acronyms:

BOGC: Bangladesh Oil & Gas Corporation


T & D: Transmission and Distribution
JGTDSL: Jalalabad Gas T & D System Ltd.
DCO: Department Coordinator Officer
MIV: Material Issue Voucher
EPS: Earning per Share
SWOT: Strengths, weaknesses, opportunities, and threats
MTV: Material Transfer Voucher
MIS: Management Information System
FASB: Financial Accounting Standard Board
GAAP: Generally accepted accounting principles
FDIC: Federal Deposit Insurance Corporation.
Appendix-1

References
 Annual Audit Report-2012, 2013, 2014 and 2015 of Jalalabad Gas.
 Madura, J (2008), Financial Market and Institution. USA: Thomson South-western.
 Stanley, B. B., & Geoffrey, A. H. (2008-2009). Foundation of Financial
Management. International: McGraw-Hill.

Website
 www.jalalabadgas.org.bd
 http://www.investopedia.com/terms/p/price-earningsratio.asp
 http://www.investopedia.com/terms/p/payoutratio.asp
 http://www.investopedia.com/terms/t/totaldebttototalassets.asp
 http://www.investopedia.com/terms/d/debtequityratio.asp
 http://www.investopedia.com/terms/a/assetturnover.asp