VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL *** GRADUATE INTERNSHIP REPORT INTERNSHIP COMPANY: CLASSONE VINA LIMITED COMPANY Address: 45B, Alley 9, Tran Duy Hung Street, Trung Hoa Ward, Cau Giay District, Hanoi Supervisor: MSc Do Phuong Huyen Student’s full name: Nguyen Thi Phuong Anh Student’s ID: 11071357 Major: International Business Class: IB2012B Hanoi, March 11th, 2016 ACKNOWLEDGEMENTS On my internship report, it is my privilege to thank all the people who made this period an unforgettable experience in my life First, I am very thankful for the board of director of CLASSONE VINA, who gave me the chance to work in a brand new environment Second, I should thank to the staffs of CLASSONE VINA for supporting and providing me the opportunity to have a great internship period Especially, I am very grateful to my sponsor - Ms Tran Thi Thu Huong – for providing me appropriate guidance and training within these weeks And last but not least, I also appreciate my supervisor – Ms Do Phuong Huyen – for the efforts to supervise and give me the direction to explore a new environment Thanks to her, I have crucial comments to successfully complete this report Hanoi, March 11th, 2016 Nguyen Thi Phuong Anh ABBREVIATIONS BCR Dept HR HVAC IT Ltd PM R&D SMBA VND Bio Clean Room Department Human Resource Heating, Ventilating, and Air Conditioning Information Technology Limited Project Manager Research and Development Small and Medium Business Administration Vietnam Dong LIST OF TABLES Number 1.1 1.2 1.3 2.1 2.2 2.3 3.1 Name Company general information CLASSONE’s History BCR Services CLASSONE’s Revenues CLASSONE’s Corporate tax CLASSONE’s Financial Activities Schedule of internship Page 20 21 23 24 LIST OF FIGURES Number 1.1 1.2 2.1 2.2 2.3 Name CLASSONE Organizational Structure CLASSONE VINA Organizational Structure Operating process Product positioning Company capital Structure 2014 - 2015 Page 11 12 19 Contents Part I - INTERNSHIP REPORT CHAPTER 1: Overview of CLASSONE CLASSONE is a Korean corporation established on September 30th, 2003 With the mission of quality management, the company began with machine facility construction business CLASSONE has become the leading company in the clean room facilities field, providing suitable solutions for industrial clean room, bio clean room and cleaning equipments CLASSONE VINA is the Vietnamese subsidiary of CLASSONE, which is one of many tools to enhance its existence in Southeast Asia market 1.1 Company outline Table 1.1: Company general information Company name CLASSONE Co Ltd CEO Lee Jaewon Establishment date September 30th, 2003 March 14th, 2014 (Vietnam) Location Head office: 509 Cheohye rodeo plaza, Gozan-dong, Ansan City, Korea Vietnam: 45B, Alley 9, Tran Duy Hung Street, Trung Hoa Ward, Cau Giay District, Hanoi Business Manufacturing, Construction, Wholesale, etc Telephone +84-4-6259-5511 Website www.class1.co.kr Business license 011043002251 Tax code 0106493556 (Source: www.class1.co.kr) 1.2 Company History Table 1.2: CLASSONE History Date Activities 30/09/2003 Establishment of CLASSONE Inc 02/10/2003 Opening the office of the headquarters 26/08/2004 Registration of construction industry 30/09/2004 ISO9001 Certification acquisition 02/09/2004 Joining Korea Mech Const Contractors Association 17/04/2005 Increase of capital (250 million won) 15/02/2006 Joining Korea Printed Circuit Association as a regular member 04/09/2006 PCB facility and clean facility manufacturing factory registration ( Ansan City) Shenzen China Mooneup interior limited company trade basic contract Establishment of a research institute attached to the company 10/11/2007 10/06/2008 28/11/2008 12/06/2009 18/06/2009 Approved as small-and-medium sized company of management innovation Execute a sale contract of JMI in Vietnam and Cambodia 23/06/2009 Approval of Welsum Inc the Ministry of Agriculture in Japan for heat food process facility ISO14001 Certificate acquisition 07/08/2010 Increase of Capital (400 million won) 01/06/2011 Joining KOHEA 26/07/2011 Application of patent for mushroom growing facilities 19/03/2012 Shanghai, China office 14/03/2014 Set up corporation in Vietnam 12/06/2015 Selected as High Growth (Gazelle type) Company by SMBA 1.3 Mission and Core value • Mission: Trusted quality, the optimal delivery and the best system • Core values: - Sincerity: We make the best effort with sincerity for clients - Harmony: With harmony of all staff members, we move toward the common goal of customers and the company - Loyalty: Based on trust and loyalty, we show the faithfulness of the company 1.4 Organizational structure 1.4.1 CLASSONE Corporation Figure 1.1: CLASSONE Organizational Structure PRESIDENT Foreign country R&D dept China office Vietnam office Laboratory Cleanroom business Equipment Management support dept business dept team Technical sales team Technical sales team Personnels/ General affairs Technical team Production team Accounting/ Finance PM business team Customer service team Customer service team (Source: www.class1.co.kr) 1.4.2 CLASSONE VINA Figure 1.2: CLASSONE VINA Organizational Structure Board of Director Contruction & Design Dept HR Dept Accounting/Finance Dept Administrative Dept (Source: CLASSONE’s Yearbook, 2014) 1.5 Products and targeted customers 1.5.1 Industrial Clean room a Definition “Clean room means the space where floating corpuscle in the air is maintained below the certain degree of cleanliness; degree of cleanliness required for supplied material, medicine and water is maintained and management is conducted regarding temperature, humidity and pressure.” Classone, 2010 b Clean room service - Suggest best solution for customer manufacturing environment, based on correct understanding on product and process of customer - Fully equipped with long experience and expertise in industrial manufacturing: electric and electronic (such as semiconductor, LCD, PCB), precision machines, optics, printing, chemicals and film manufacturing - Provide service for Digitech (May,2014), Samkyung (June, 2014), INM (June,2015), BHFlex (November,2015), and Orchem (December, 2015) 1.5.2 Bio clean room - BCR a Definition “BCR means the room which controls biological particles (living particles) and nonliving particles in order to meet particular standard for a special purpose and also controls temperature, humidity and pressure indoor depending on specific needs.” b BCR service - Create optimal environment for pharmaceutical, laboratory and food manufacturing those require special environmental control and fully compliance to regulations - Provide hospital Total Clean System covers whole hospital areas including operating room, isolation room, ICU and aseptic room Table 1.3: BCR Service GMP – Practice Goods Manufacturing Optimized pharmaceutical fully compliance with GMP facility GLP – Goods Laboratory Practice Optimized laboratory solution to variable requirements for laboratory animals and biohazards Hospital Solution Total solution for whole hospital operation including operating room, aseptic room and HVAC system HACCP (Hazard Analysis and Critical Control Point) Safe and clean, tighter contamination controlled food manufacturing environment 1.5.3 Clean equipments Highly skilled engineers develop, design and manufacture core equipments This assures further customer satisfaction by providing high technology system with cost efficiency, also optimized to varying requests of customers Equipments include: • Air control unit • Air shower (normal and special type) 10 • • • • • • • • • • • • • • • • Bag filter type Dust collector Fan Filter Unit (FFU) Pass box (standard and shower type) Clean bench (horizontal and vertical type) Clean booth (standard and thin type) HEPA Filter Box Relief damper Medical Fan Unit Air Handling Unit Environment Test Devices Constant temperature and Humidity chamber Cooling system and Refrigerator Condensing Unit Blower Filter Unit Dry type Dehumidifier Mushroom Growing Facility 22 • Overall, the Liabilities to Assets ratio and the Liabilities to Shareholders’ Equity ratio followed an upward trend as a result of supplying more money from loans and trade payables • The Operating cash flow to Total Liabilities ratio was 0.2 which is common for a financially healthy ratio In another hand, if we take a further look at the formula: If CLASSONE VINA borrows long-term liabilities, this ratio will become less than 0.2, which indicates a solvency risk => The company faces a considerable solvency risk 2.5.5 Investment activities Table 2.4: CLASSONE’s financial activities: (Source: CLASSONE’s notes to financial statements, 2014-2015) The company gain some financial in come from foreign bank interests and foreign exchange difference Nevertheless, the number seems quite small compared with the loss from foreign exchange risk 23 24 CHAPTER 3: INTERNSHIP GOALS, ASSIGNED TASKS AND PERFORMANCE 3.1 Internship goals • To approach potential working environment and decide whether it meets career wishes and interests • To apply learned knowledge into real-world situations • To strengthen and deepen practical experience • To acquire important supplementary skills: communication skills, interpersonal skills, self-discipline, and professional ethics • To master academic knowledge 3.2 Assigned tasks and performance Table 3.1: Schedule of Internship Wee k Date Tasks performed Jan 18th to - Get to know and be familiar with the working Jan 22nd environment, working hours, dress code, and the communication of the company - Read documents related to Accounting working procedures - Get minor tasks handed over Jan 25th to Jan 29th - Have the first meeting with Accounting and Financial department - Classify invoices - Revise the data on the invoices compared with the ledger 25 Wee k Date Tasks performed Feb 15th to - Have a meeting with Accounting and Financial Feb 19th department - Try to write journal entries - Learn to use CNS Accounting Software Feb 22nd to - Arrange documents Feb 26th - Meet the supervisor to prepare for internship report Feb 29th to - Write journal entries Mar 4th - Collect bills from buying daily supplies -Support creating records of debt settlement - Check end-of-month cash flow statement - Collect supplier invoices and employee expense reports Mar 7th to - Verify that the billed amounts are authorized for payment Mar 11th - Make schedules for payment dates 26 CHAPTER 4: ACHIEVEMENTS 4.1 Improve knowledge: • Corporate and international finance: analyze company’s capital structure; evaluate revenues and expenses, the effect of foreign exchange in company’s profit • Financial statement analysis and Valuation: understand how financial indexes reflect firm’s solvency and liquidity risks • Accounting principles and methods: know which task is given for specific staffs as well as which accounting policies are applied • Organizational structure and strategies: realize the importance and roles of each department within the corporation • Supply chain management: understand the flow of inputs/outputs, and inventories in operation • Business communication: be aware of differences in a multicultural workplace 4.2 Improve skills • Adaptability: by learning company’s culture and trying to fit in, following company’s rules (working hours, dress code, etc.) • Time management: dealing with deadlines by creating a to-do list, setting goals and time limits • Communication skills: being able to effectively communicate with seniors, either Korean or Vietnamese ones; speaking clearly and confidently 4.3 Contributions to the company • Complete minor tasks handed over • Support colleagues when they need help, being an extra pair of hands to get some loads off their back 4.4 Recommendations • CLASSONE should consider applying appropriate asset management methods to improve its profitability indexes 27 • Restructure capital with long-term debts • Use derivatives to limit foreign exchange risks 28 REFERENCES Anon 2012, Company history [online] Available at [Accessed Feb 22nd, 2016] Baginski S., Wahlen M., and Bradshaw J 2011 Financial Reporting, Financial Statement Analysis and Valuation, Cengage Learning 7th edn, Mason CLASSONE 2014, Company’s Yearbook CLASSONE, 2014-2015, Financial Statements Phan Mai 2012 Quản lý tài sản công ty cổ phần ngành xây dựng niêm yết Việt Nam, PhD thesis, Vietnam National Economic University Sanders N 2013 Supply chain management: a global perspective, Wiley & Sons, Danvers Cophieu68, 2016, Chi so tang truong tai chinh nhom nganh [online] Available at [Accessed March 4th, 2016] 29 APPENDIX A – FINANCIAL STATEMENTS FOR 2014 As at 31 December 2014 FORM B 01-DNN Unit: VND 30 BALANCE SHEET (Continued) As at 31 December 2014 FORM B 01-DNN Unit: VND OFF-BALANCE SHEET ITEMS Items Note 31/12/2014 s 14/03/2014 20,96 Foreign Currencies - USD 1.83 20,96 1.83 - 31 INCOME STATEMENT For the year ended as at 31 December 2014 FORM B 02-DNN Unit: VND CASH FLOW STATEMENT 32 For the year ended as at 31 December 2014 FORM B 03-DNN Unit: VND 33 APPENDIX B – FINANCIAL STATEMENTS FOR 2015 BALANCE SHEET As at 31 December 2015 FORM B 01-DNN Unit: VND 34 BALANCE SHEET (Continued) As at 31 December 2015 FORM B 01-DNN Unit: VND 35 INCOME STATEMENT For the year ended as at 31 December 2015 FORM B 02-DNN Unit: VND 36 CASH FLOW STATEMENT (Applying direct method) For the year ended as at 31 December 2015 FORM B 03-DNN Unit: VND [...]... laws in Vietnam Auditing CLASSONE s financial statements are independently audited by MHD Auditing Company Limited 18 IT Methods The accountants mainly use CNS Accounting Software to manage every day transactions 2.5 Financial activities Since CLASSONE VINA has been operating in Vietnam just for more than 2 years, this report only analyses the financial performance of the company in the period 2014-2015... hand, if we take a further look at the formula: If CLASSONE VINA borrows long-term liabilities, this ratio will become less than 0.2, which indicates a solvency risk => The company faces a considerable solvency risk 2.5.5 Investment activities Table 2.4: CLASSONE s financial activities: (Source: CLASSONE s notes to financial statements, 2014-2015) The company gain some financial in come from foreign... 2.5.3 Tax expense: The company has to pay corporate tax rate of 20 percent of all its taxable income While CLASSONE paid VND 51.7 millions in 2014, it did not have to pay any corporate income tax in 2015 because of the loss before tax Table 2.2: CLASSONE s Corporate Tax (Source: CLASSONE s notes to financial statements, 2014-2015) 2.5.4 Risk analysis Table 2.3: Risk ratios for CLASSONE Revenues to cash... This will be examined further in following sections 2.5.2 Revenue and profitability index • The revenue of the company increased by 1.67 times from 2014 to 2015 Table 2.1: CLASSONE s Revenues (Source: CLASSONE s notes to financial statements, 2014-2015) • Profitability index ROA of CLASSONE VINA was 3.49 percent in 2004 (similar to the Construction sector value) and then decreased to (-2.43) percent... [Accessed Feb 22nd, 2016] Baginski S., Wahlen M., and Bradshaw J 2011 Financial Reporting, Financial Statement Analysis and Valuation, Cengage Learning 7th edn, Mason CLASSONE 2014, Company s Yearbook CLASSONE, 2014-2015, Financial Statements Phan Mai 2012 Quản lý tài sản tại các công ty cổ phần ngành xây dựng niêm yết ở Việt Nam, PhD thesis,... the company' s customers Collections: keeps track of overdue invoice payments from customers, and uses a variety of methods to extract payment from them, including dunning letters, phone calls, and attorney letters Financial statements: creates adjusting journal entries to bring the company' s initial financial results into compliance with the applicable accounting framework, writes footnotes to accompany... Payable of 52 days, it proves that the company is small and has little reputation This statement is also proved by large number of Days Inventory and • Nevertheless, the Operating cash flow to Current liabilities ratio was only 0.2 while experts found that a ratio of 0.4 or more was common for a typical healthy manufacturing firm (Baginski et al, 2011) => Hence, CLASSONE VINA displays a significant liquidity... Guarantee Finish (Source: CLASSONE s Yearbook, 2014) 12 2.2 Supply chain activities For clean equipments, CLASSONE follows make-to-stock strategy which allows producing products for immediate sale and delivery, in anticipation of demand (Sanders, 2013) It also provides shortest delivery lead time Figure 2.2: Product positioning Processing Assembly stock Inventory stock Shipping (Source: CLASSONE s Yearbook,... Feb 22nd to - Arrange documents 4 Feb 26th - Meet the supervisor to prepare for internship report Feb 29th to 5 - Write journal entries Mar 4th - Collect bills from buying daily supplies -Support creating records of debt settlement - Check end-of-month cash flow statement - Collect supplier invoices and employee expense reports Mar 7th to - Verify that the billed amounts are authorized for payment Mar... Adaptability: by learning company s culture and trying to fit in, following company s rules (working hours, dress code, etc.) • Time management: dealing with deadlines by creating a to-do list, setting goals and time limits • Communication skills: being able to effectively communicate with seniors, either Korean or Vietnamese ones; speaking clearly and confidently 4.3 Contributions to the company • Complete