Report on an Appraisal of Fixed Asset Management System of BATB

Abstract

This · internship report is prepared on the largest tobacco manufacturing company in the country, British American Tobacco, Bangladesh (BATB). The report bas been divided into two parts. The first one is the organization part, where I have tried to include as much information as possible on BA TB. The last one is the project part, where I have discussed the main project that I have dealt with dwing my internship period at BATB. I have dealt with 'Fixed Asset Management System' at BATB. BATB's Fixed Asset Management covers tangible assets which are Freehold· Land, Freehold Building, Leasehold Land, Leasehold Building, Plant and Machinery and so on. For acquiring Fixed Assets, BA TB usually calls tenders where both qualities as well as price are taken into accounts. Besides, there are some methods which are used by BA TB to evaluate projects and to decide whether assets should be accepted or not. While doing so one method they use is 'Capital Budgeting Evaluation Techniques'. This technique includes NPV, IRR and Payback Period On the other ha.nd, for not-so-large capital investments purc���� decisions are made through company plan budgets. Company plan budget is the annual budget plan which among other things includes budgets for fixed assets. This includes budget for both large and not-so-large capital investnlents. For disposal, formal proposal has to be mised in the pre-printed fonn i.e. 'Disposal of Fixed Assets' or 'OOFA' by the concerned department in quadruplicate and send those fonns accordingly. Moreover, for disposing fixed asset two things can be done.One is selling the asset and the other is scmpping the fixed asset In order to sell the asset like furniture, car���� in­ house tender is done and for asset like Plant and Machinery, BATB usually scrap it and then sell it because of strategic reasons. Whenever an asset is transferred from one location to another, 'Fixed Assets Transfer' or 'FAT' memo should be prepared by the transferor location in Triplicate and upon acknowledgement by receiving location one copy has to be sent to the respective Unit A«.ounting Department for updating the Fixed Assets record in the module.