Introduction to the Company's Formation and Development Process

CHAPTER 3: OVERVIEW OF CONSTRUCTION JOINT STOCK COMPANY

TECHCONS

3.1. Introduction to the company's formation and development process

Maybe you are interested!

• “Cronbach's Alpha Cost Factor Scale”
• The Formation and Development Process of Water Transport Joint Stock Company No. 4.
• Company's Business Performance Results for 3 Years (2018-2020)
• Analysis of the Company's Labor Situation Over the Three Years 2012-2014
• Production cost accounting and product pricing at Thong Nhat Thua Thien Hue Auto Mechanical Joint Stock Company - 2

Techcons Construction Joint Stock Company (Techcons Company) is a unit under Thanh Nien Media Group, established on March 26, 2013 and officially operating on May 1, 2013 under Business Registration Certificate No. 0312256896 issued by the Business Registration Office - Department of Planning and Investment of Ho Chi Minh City. Changed for the third time, July 21, 2015.

Company Name: TECHCONS CONSTRUCTION JOINT STOCK COMPANY International Name: TECHCONS CONSTRUCTION CORPORATION

Address: 345/134 Tran Hung Dao, Cau Kho Ward, District 1, Ho Chi Minh City

Phone: (08)39209810 Fax: (08)39209824

Email: info@techcons.com.vn Website: techcons.com.vn.

Total charter capital of the company: 10,000,000,000 VND (Ten billion Vietnamese Dong). Legal representative: Tran Thi Ngoc Quyen - General Director.

Business field: Construction Business lines:

Construction of all types of houses; construction of railways and roads; construction of public works, site preparation; installation of water supply, drainage, heating and air conditioning systems, construction of other civil engineering works, demolition, installation of electrical systems, installation of other construction systems; completion of construction works, wholesale of materials; wholesale of metals and metal ores, rental of machinery, equipment, other tangible goods, specialized design activities.

With the motto " BUILDING TRUST ", TECHCONS commits to not only aiming to successfully build projects but also to completely build the trust of customers towards TECHCONS.

As a newly established enterprise with the dynamism, creativity and efforts of the Board of Directors, Board of Directors, and the staff of the company, TECHCONS has been developing steadily to become a prestigious construction company, trusted by society and customers. Up to now, with a team of highly skilled and skilled managers and technical workers carefully selected, always accepting new

With advanced technology and the dynamism in approaching new markets, the Company has signed many medium and large contracts for industrial, civil, technical infrastructure construction... Currently, TECHCONS is gradually stabilizing production and business and striving to become one of the strong units in the Vietnamese construction industry.

- Company logo:

3.2. Management structure at the company

3.2.1. Management organization chart

BOARD OF DIRECTORS

BOARD OF SUPERVISION

BOARD OF DIRECTORS

ADMINISTRATIVE AND HUMAN RESOURCES DEPARTMENT

INVESTMENT PLANNING DEPARTMENT

FINANCE AND ACCOUNTING DEPARTMENT

CONSTRUCTION TEAMS

SERVICE DEPARTMENT

Diagram 3.1. TECHCONS's organizational structure

3.2.2. Functions and tasks of departments and affiliated units

- Board of Directors: Is the highest management body of the Company, responsible for deciding on the Company's development strategy, market development solutions, implementing economic contracts, organizational structure, internal management structure of the Company, buying and selling shares...

- Board of Control: Has the responsibility to check the honesty, reasonableness and legality in the management and operation of business activities, in recording and keeping accounting documents and books and financial reports of the Company.

- General Director: Appointed by the Board of Directors. The General Director is responsible for managing the daily production and business activities of the company, is the legal representative of the company, organizes the implementation of the production and business plans and investment plans of the Company.

- Board of Directors: Advises the General Director and is responsible to the General Director for assigned tasks, proactively resolves issues that the General Director authorizes and assigns in accordance with State regulations and the Company's charter.

- Investment planning department: Advise the General Director in planning, checking the implementation of plans, developing the Company's production and business plans, establishing marketing strategies... and construction projects, reviewing design documents, construction bidding documents, product acceptance, technical quality inspection, developing new products... Calculating and establishing medium and long-term projects in the actual conditions of the Company along with external conditions of the economy.

- Finance - Accounting Department: Analyze the company's financial activities and control, advise the General Director in effectively organizing the company's capital and assets. Implement and fully comply with the State's regulations and regimes. Accounting for the entire production and business activities of the company by collecting, processing, providing in a complete, timely and accurate manner economic transactions related to financial and economic activities in the entire unit, thereby contributing to improving the efficiency of production and business activities of the entire enterprise.

- Administration - Human Resources Department: Has the function of advising the Board of Directors and General Director of the company to perform tasks such as: organizing production personnel, recruiting, managing and using labor.

3.3. Characteristics of technological process

Due to the characteristics of the construction industry and XDCB products, the company's production process is characterized by continuous and complex production, going through many different stages. Each project has its own design estimate and is constructed at different locations. We can summarize the product production process through the following diagram:

Bidding and construction contracting

Construction planning

Construction and installation progress

Purchase materials, hire workers

Liquidation

project handover contract

Approve, settle

project, project item

Delivery of works and construction items

complete

Diagram 3.2. Technological process

3.4. Accounting organization structure at the company

3.4.1. Characteristics of the accounting department organization in the company

The organization and implementation of accounting functions and tasks in the enterprise are undertaken by the accounting department.

Chief Accountant

General Accounting

Payment accounting

Payroll Accounting

Treasurer

Diagram 3.3. Overview of the accounting system at the company

3.4.2. Functions and tasks

- Chief Accountant : Is the person who organizes and directs the implementation of all financial accounting and economic information work in the entire company. At the same time, guides, institutionalizes and promptly concretizes the financial accounting policies, regimes and regulations of the State and the Company. Guides, inspects, directs accounting, makes financial plans, and is responsible to the Company Director for the Company's financial accounting work.

- General Accountant: Keeps general ledgers and prepares company reports. In addition, the General Accountant is also the person who checks the reasonableness and validity of documents as well as accounting records related to the company's business activities.

-Payment accountant: responsible for monitoring debt situation, purchasing and selling goods, monitoring deposits, cash withdrawals or doing bank loan procedures, doing collection and payment procedures.

- Payroll accounting: Track employee and worker working days, create payroll .

- Cashier: Manage the Company's cash, based on approved, valid and legal documents to conduct cash receipts and disbursements, and bank transactions.

3.4.3. General accounting policies

- Applicable accounting regime: The Company applies the Vietnamese accounting regime issued under Circular No. 200/2014/TT-BTC dated December 22, 2014 of the Ministry of Finance.

- The accounting year starts from January 1 and ends on December 31 every year.

- Currency: Vietnamese Dong (VND).

- Inventories are recorded at original cost, valued using the actual identification method, accounted for using the regular declaration method and calculated for VAT using the deduction method. The value of inventory provision is the difference between the net value and the estimated cost to sell them.

- Unfinished products at the end of the period are calculated using the direct materials cost method, direct labor cost method (or equivalent finished product method).

- The Company is applying the straight-line depreciation method and complying with the regulations guided in Circular 45/2013/TT-BTC dated April 25, 2013 of the Ministry of Finance.

- Applicable accounting form: General journal.

- Accounting software used at the company: Misa accounting software.

Accounting documents

General journal

Cash book

Detailed accounting books

Ledger

Balance sheet of arising numbers

Summary table

Financial report

Note:

Daily Record Monthly Record

or periodically

Comparative relationship

Diagram 3.4: Accounting entry sequence in the form of general journal entry

3.4.4. Accounting software used at the company

In the current period, the application of information technology in economic management in general and accounting in particular has become a mandatory requirement. Therefore, the company is currently using Misa accounting software, a product of Misa Joint Stock Company.

3.5. Company situation in recent years

As a newly established company, Techcons has always tried its best to overcome the barriers and difficulties in the beginning. In recent years, Techcons has completed many small and medium projects and also signed a number of large-value contracts such as:

2015: Van Phuc 1 housing project (signed 4 contracts for townhouses), Pearl Plaza Van Thanh project, Tan Son Nhat Golf Course, etc.

2016: Continuing to sign and complete contracts with Van Tin Company and the contract to complete Pearl Plaza Van Thanh. And especially, the company has recently signed the contract for the City Party Committee Guest House.

Currently, TECHCONS is gradually stabilizing production and business and striving to become one of the strong units in the Vietnamese construction industry.

3.6. Advantages, difficulties, development directions

o Advantages:

Although the company is newly established, it has a stable source of capital and is able to mobilize capital from various sources. In addition, the company also ensures credit limits in 2016 at reputable banks such as Sacombank: billion, Vietinbank: billion, Eximbank: billion.

The company has a team of experienced employees, construction engineers, mechanics, economic and financial experts who have contributed to the company's development. Currently, the company has also signed many large contracts.

o Difficulty:

Besides those advantages, the company also has difficulties, especially for a newly established enterprise, competition with rival companies faces many obstacles. Input prices of many types of materials and raw materials increase, while product prices do not increase, or increase little, affecting the efficiency of production and business activities of construction enterprises. Currently, the company's equity capital is still low and there are also shortcomings in mobilizing idle capital from the people or capital from bank credit.

o Development direction:

With the motto " BUILDING TRUST ", Techcons Construction Joint Stock Company with the dynamism, creativity and efforts of the Board of Directors, Board of Directors, staff, the company always sets out development directions for the company to become increasingly strong and become a prestigious construction company, trusted by society and customers:

Short term goals:

- Build Techcons brand to grow and be competitive domestically.

- Focus on investing in construction equipment and human resources to improve product quality.

- Building a people-centered corporate culture, the highest value is safety.

Long term goal:

- Construction is still the main production activity of the company. In addition, we constantly diversify products, focus on development, and concentrate on long-term investment in the fields of screw business investment, construction design investment consulting, and construction material production and business.

- Improve financial capacity, production and business capacity and competitiveness to ensure sustainable development in output, revenue and profit.

- Continuously improve the management system to suit the company's development direction. Innovate production technology, apply scientific and technical advances, new technology in production.