Department of Accounting

Term Paper
On
Variance Analysis of Kohinoor Chemical Company
Ltd.
Submitted To:
Nipul Kanti Bala
Associate Professor
Department of Accounting
Govt. Shahid Suhrawardy College, Dhaka

Submitted By:
Mahajabin Akter
MBA Final Year
Class Roll No: 13061
Reg. No:
Session: 2014-2015
Department of Accounting
Govt. Shahid Suhrawardy College, Dhaka

University of Dhaka
Date of Submission: 25th February, 2018
 Letter of Transmittal
Date: 25th February, 2018

To
Nipul Kanti Bala
Associate Professor
Department of Accounting
Govt. Shahid Suhrawardy College, Dhaka

Subject: Submission of term paper on “Variance Analysis of Kohinoor Chemical

Company Ltd.”

Dear Sir,
With suitable respect I would like to convey your knowledge that as per our MBA (Final).
I have prepared my term paper under the topic of “Variance Analysis of Kohinoor
Chemical Company Ltd.” under your kind supervision. Now I like to submit my paper
to you. I have tried my best to prepare the paper in consistence with the optimal standard
under your valuable direction.

I request you modestly to accept my paper as it may suffer from shortcoming. I desired
and endeavored to make this paper a complete one. Therefore, I hope that this will meet
the standard of your judgment.

Sincerely Yours

…………….........………
Mahajabin Akter
MBA Final Year
Class Roll No: 13061
Session: 2014-2015
Department of Accounting
Govt. Shahid Suhrawardy College, Dhaka
 Supervisor’s Declaration

This is to certify that the term paper on “Variance Analysis of Kohinoor Chemical
Company Ltd.” is a satisfactory record of work prepared by Mahajabin Akter, Class
Roll No: 13061, Session: 2014-2015, Department of Accounting, Govt. Shahid
Suhrawardy College, Dhaka It is done as a partial fulfillment of requirement for MBA
(Final Year) This term paper has been carried out under my guidance and is a record of
authentic work carried out successfully by her.

I wish her every success in life.

Nipul Kanti Bala

Associate Professor
Department of Accounting
Govt. Shahid Suhrawardy College, Dhaka
 Student’s Declaration

I do hereby declare that the work presented in this declaration report has been carried out
by me and has not been previously submitted to any other College for an academic
certificate for any other degree. The works I have presented dose not breach any existing
copyright and no portion of this report is copied from any work done earlier for a degree
otherwise.

I further undertake to indemnify the department against any loss or damage arising from
breach of the forgoing obligation.

…………….........………
Mahajabin Akter
MBA Final Year
Class Roll No: 13061
Session: 2014-2015
Department of Accounting
Govt. Shahid Suhrawardy College, Dhaka
 Acknowledgement

I would hereby like to express my appreciation to all those who have supported me with
motivation and spirit for accomplishing this dissertation. I am grateful to all who
supported me.

First of all, I want to convey my heartfelt to the department of Accounting, Govt. Shahid
Suhrawardy College, Dhaka to give me the opportunity to prepare this Term Paper.

I would like to express my gratitude to father, mother and sisters for providing the spirit
of motivation through the duration of the academic year as well as my lifetime. Special
thanks to my honorable madam Nipul Kanti Bala, Associate Professor, Department of
Accounting, Govt. Shahid Suhrawardy College, Dhaka for her help and guidance
alongside improving the quality of this study.

I am also deeply indebted to my friends and roommates who gave me a good piece of
advice and supporting the spirit of motivation to accomplish the completion of this Term
Paper.

…………….....…
Mahajabin Akter
MBA Final Year
Class Roll No: 13061
Session: 2014-2015
Department of Accounting
Govt. Shahid Suhrawardy College, Dhaka
 Executive Summary

Variance analysis is the study of deviations of actual behaviour versus forecasted or

planned behaviour in budgeting or management accounting. This is essentially concerned
with how the difference of actual and planned behaviours indicates how business
performance is being impacted. Kohinoor Chemical Company Limited (KCCL) started its
business in 1956 and was engaged in manufacturing high quality cosmetics, toiletries,
soap and glycerin for decades. After the independence of Bangladesh, KCCL became a
fully government owned company under the direct control of Bangladesh Chemical
Industries Corporation (BCIC) up to May 05, 1988. It was transformed into a Public
Limited Company under Companies Act 1913 and was named as Kohinoor Chemical
Company (Bangladesh) Limited from May 05, 1988. The Government of the peoples’
Republic of Bangladesh has vested the company’s 51% share of Bangladesh Chemical
Industries Corporation. Out of 49% balance shares 34% shares were soled to the public
and rest 15% shares were reserved for sale among the officers, staff and workers. The
shares of the company are the publicly traded in Dhaka and Chittagong Stock Exchange
Ltd. The Kohinoor Chemical Company (Bangladesh) Limited (KCCL) is one of the
largest and high quality cosmetic companies in Bangladesh. Quality comes first- keeping
this principle in mind; the company aim at producing guarantied international quality
cosmetics and toiletries for quality conscious people of home and abroad. Since this a
product oriented company various kinds of accounting activities are necessary to operate
this company successfully.
 Table of Contents

Name of Topic Page No:

Chapter one: Introduction 01-03
1.1 Introduction
1.2 Aim and rationale of the term Paper
1.3 Objectives of the Term paper
1.4 Limitations of the term paper

Chapter Two: Company overview of KCCL 04-10

2.1 History Kohinoor Chemical Company Limited (KCCL)
2.2 Beginning of The Journey
2.3 Strengthening marketing activities:
2.4 Culture:
2.5 Products of KCCL
2.6 Accounting and Finance Department
2.6.1 Duties and responsibilities of Accounting Department
2.7 Distribution Process:
2.8Management Structure of KCCL

Chapter Three: Database 11-12

3.1 Methodology of the study
3.1.1 Primary sources
3.1.2 Secondary sources

Chapter Four: Findings and Analysis 13-22

4.0 Definition of 'Variance Analysis'
4.1 Variance analysis
4.2 Porter’s five forces analysis:
4.3 Analysis of KCCL (Tibet Detergent) based on Porter’s five factor
4.4 Variance Analysis of KCCL and Unilever Bangladesh
4.5 Variance Toiletries Industry in Bangladesh
4.6 Operational Activities
4.7 Market Shares
4.8 Cost of goods sold
4.9 SWOT analysis KCCL

Chapter Five: Recommendations and Conclusion 23-26

5.1 Recommendations
5.2 Conclusion
Bibliography