Accounting System of WINGS AIR CARGO LTD.

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Accounting System of WINGS AIR CARGO LTD.

1.1 Introduction:

Accounting is concerned primarily with the measurement and communication of financial information to aid decisions and control in a variety of business and other organizations. Accounts are, therefore, at the heart of information systems- the fastest growing area of business activity.

This study content includes the nature of accounting, data processing and analysis and use of accounting information in the freight forwarding business.

In the backdrop of economic liberalization and transportation sector reforms, a group of successful entrepreneurs conceived an idea of floating a transportation of goods with different outlook. For them, it was competence, excellence and consistent delivery of reliable service with superior products.

Freight forwarding is a service used by companies that deal with international business. While the freight forwarders do not actually move the freight itself, it acts as an intermediary between the client and various transportation services. Sending products from one international destination to another can involve a multitude of carriers, requirements and legalities. A freight forwarding service handles the considerable logistics of this task for the client, relieving what would otherwise be a formidable burden.

Freight forwarding services guarantee that products will be reached to the proper destination by an agreed upon date, and in good condition. The freight forwarding service utilizes established relationships with carriers of all kinds, from air freighters and trucking companies, to rail freighters and ocean liners. Freight forwarding services negotiate the best possible price to move the product along the most economical route by working out various bids and choosing the one that best balances speed, cost and reliability.

A freight forwarding service generally provides one or more estimates to the clients along with advisement, when necessary. Considerations that effect price will range from origin and destination to special requirements, such as refrigeration or, for example, transport of potentially hazardous materials. Assuming the client accepts the forwarder’s bid, the freight is readied for shipping. The freight forwarding service then undertakes the responsibility of arranging the transport from point of origin to destination.

One of the many advantages of using freight forwarding service is that it handles ancillary services that are a part of the international business. Insurance, customs documentation and clearance are some examples. As a consolidator, a freight forwarding service might also provide Non-Vessel Operating Common Carrier (NVOCC) documentation, or bills of lading. Warehousing, and management, and methods of international payment are also commonly provided to the client by the freight forwarding service.

A good freight forwarding service can save the client’s untold time and potential headaches while providing reliable transportation of products at competitive rates. A freight forwarding service is an asset to almost any company dealing in international transportation of goods, and is especially helpful when in-house resources are not versed in international shipping procedures.

Accordingly, Wings Air Cargo Ltd (WAC) was created and commencement of business on 17th April, 1989. The Management personnel are reputed personalities in the field of trade and commerce and their stake ranges form garments to shipping as fully licensed International Freight Forwarder, a highly professional and dedicated team are managing the organization with long experience in the international freight forwarding by ocean & air and constantly focus on understanding and anticipating customer needs. As the international transportation & logistics services scenario undergoes changes so is the WAC and it repositions itself in the changed market condition. WAC has already made significant progress with a very short period of its existence and the company has been graded as a top class international freight forwarding in the country through internationally accepted various aspects. WAC has already occupied an enviable position among its competitors after achieving success in all areas of international freight forwarding by air & ocean service covering all segments of society within the frame work of international transportation company. Various international Acts, rules and regulations lay down, diversification of services include warehousing, air freight forwarding, ocean freight forwarding and custom house brooking right from manufacturer, importer & exporters.

WAC has consistently turned over good return on asset and capital. During the year 2007-08, the company has posted and operating profit of Tk. 27.61 million and its capital funds stood at Tk.119.54 million. Out of this, Tk. 5 million consists of paid of capital by share holders and Tk. 114.54 million represents reserves and retain earning. WAC’s current capital adequacy ration of 12.43% is in the market and much above the stipulated line of 8% (Annexure-A). Since its beginning has attached more important in technology integration in order to retain competitive edge investment in technology is always a top agenda and under constant focus. Keeping the network within the reasonable limit, our strategy is to serve the customers through capacity building across multi delivery channels. Our past performance gives indication of our strength, we are better placed and poised to take our customers through fast changing times and enable them compete more effectively in the market they operate.

1.2 Objectives of the Study:

To evaluate the performance of an international freight forwarding company named WINGS AIR CARGO LTD. (WAC).

To make familiar with Accounting System of an International freight forwarding company.

To highlight on the practical operations & services of WINGS AIR CARGO LTD. (WAC).

To focus on the role played by an international freight forwarding company in the country’s economy.

To submit an internship report on overall activities and accounting procedures of my current job.

1.3 Rationale of the Study:

As the business becomes very competitive and profitable, the common interests to the business communities have been augmented and result of it, the businessman are exposed to know about the business, it’s operation as well as accounting system. Moreover, entrepreneurs, business researchers and marketers are showing increasing interests for this business.

1.4 Methodology

The Study is based on both primary and secondary sources of Data. Data have been collected from office records, discussion with other department’s managers and annual report. For the report preparation, concepts, technologies and most of the relevant information’s and documents are gathered from the Finance & Accounts department of WINGS AIR CARGO LTD. (WAC).

2.1 Conceptual framework of Accounting:

Conceptual framework -Coherent set of rules and standards for comparability and consistency. On the other hand,Conceptual frameworks are a type of intermediate theory that have the potential to connect to all aspects of inquiry (e.g., problem definition, purpose, literature review, methodology, data collection and analysis). Conceptual frameworks act like maps that give coherence to empirical inquiry. The frameworks are linked to particular research purposes (exploration, description, gauging, decision making and explanation/prediction). When purpose and framework are aligned other aspects of empirical research such as choice of methodology (survey, interviews, analysis of existing data, direct observation, focus groups etc) and type of statistical technique become obvious.

Conceptual framework of accounting “seeks to identify the nature, subject, purpose and broad content of general-purpose financial reporting and the qualitative characteristics that financial information should possess”. (Deegan, 2005, p.1184). Development of framework: not universally accepted nor static

Purpose of Conceptual framework of Accounting:

A. Define the boundaries of accounting by providing:

1. The basic objectives and users

2. Definitions of key terms

3. Establish fundamental concepts

B. Assist the FASB in standard setting by providing a basis for developing new and revised standards.

C. Provide a description of current practice and a frame of reference for new issues.

D. Assist accountants and others in selecting between acceptable accounting alternatives.

Moreover, conceptual framework serves

–As an aid in developing more useful, consistent standards.

–As an aid in solving practical problems by reference to an existing framework of basic theory.

–In combination with good judgment, a sound body of theory will help accountants focus on logical and consistent solutions to accounting problems as they arise.

Components of the Conceptual framework:

FASB has issued (from 1976 on) 5 Statements of Financial Accounting Concepts (SFAC) for business enterprises. These are as follows:

SFAC No. 1. “Objectives of Financial Reporting by Business Enterprises” presents the goals and purposes of accounting.

SFAC No. 2. “Qualitative Characteristics of Accounting Information” examines the characteristics that make accounting information useful.

SFAC No. 6. “Elements of Financial Statements,” defines the broad classifications of items found in financial statements and replaces SFAC No. 3, expanding its scope to include not-for profit organizations.

SFAC No. 4. “Objectives of Financial Reporting for Non business Organizations” provides guidelines for not-for-profit and governmental entities.

SFAC No. 5. “Recognition and Measurement in Financial Statements of Business Enterprises” giving guidance on what information should be formally incorporated into financial statements and when. That is,

– Fundamental recognition criteria on what should be incorporated into the financial statements.

– Assumptions, principles and constraints

A. Defines the users of accounting information

1. Present and potential investors and creditors

2. Defines the user as the average prudent user with a reasonable

understanding of economic and business situations.

B. Defines the objectives of financial reporting.

1. To provide information that is useful in making rational investment, credit and similar decisions

2. To help users assess the timing and uncertainty of cash flows.

3. To provide information on economic resources, claims and changes in them.

SFAC No. 2. “Qualitative Characteristics of Accounting Information”

Concepts Statement no. 2 identifies primary and secondary qualitative characteristics of accounting information that distinguish better (more useful) information from inferior (less useful) information for decision-making purposes.

  1. Primary Qualities

The primary qualities that make accounting information useful for decision making are relevance and reliability.

Relevance: Accounting information is relevant if it is capable of making a difference in a decision. For information to be relevant, it should have

  1. Predictive or feedback value, i.e.; Helpful in making predictions about ultimate outcomes of past, present and future events: Predictive value.

b. it must be presented on a timely basis.

Reliability: Accounting information is reliable to the extent that it is verifiable, is a faithful representation and is reasonably free of error and bias. To be reliable, accounting information must include:

  1. Verifiability – The ability to arrive at the same conclusion, given the same information, by independent evaluators or users

b. Representational faithfulness –Representational faithfulness is an important element of reliability in that it means the information represents what really existed or happened.

c. Neutrality – Neutrality is the characteristic that the information presented is free from bias. The information presented does not favor one party’s interests over another.

2. Secondary Qualities

The secondary qualities identified are comparability and consistency.

Comparability: Accounting information that has been measured and reported in a similar manner for different enterprises is considered comparable. Information is more useful if it lends itself to comparison with similar information about another enterprise. Information is measured and reported in a similar manner for different enterprises This characteristic allows users to identify real differences between enterprises, not those due to non-comparable accounting methods. Thus, it allows for the allocation of resources to the areas of greatest benefit

Consistency: Accounting information is consistent when an entity applies the same accounting treatment to similar events from period to period. Accounting principles may be changed when it can be demonstrated the result would be preferable.

SFAC No. 6. “Elements of Financial Statements

Basic Elements

Assets: Probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.

Liabilities: Probable future sacrifices of economic benefits that arise from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events.

Equity: Residual interest in the assets of an entity that remains after deducting its liabilities. In a business enterprise, the equity is the ownership interest.

Investment by Owners: Increases in net assets of a particular enterprise resulting from transfers to it from other entities of something of value to obtain or increase ownership interests (or equity) in it. Assets are most commonly received as investments by owners, but that which is received may include services or satisfaction or conversion of liabilities of the enterprise.

Distribution to Owners: Decreases in net assets of a particular enterprise that result from transferring assets, rendering services, or incurring liabilities by the enterprise to owners. Distributions to owners decrease ownership interests (or equity) in an enterprise.

Comprehensive Income: Change in equity (net assets) of an entity during a period from transactions and other events and circumstances from non-owner sources. It includes all changes in equity during a period, except those resulting from investments by owners and distributions to owners.

Revenues: Inflows or other enhancements of assets of an entity or settlement of its liabilities (or a combination of both) during a period from delivering or producing goods, rendering services, or other activities that constitute the entity’s ongoing major or central operations.

Expenses: Outflows or other using up of assets or incurrences of liabilities (or a combination of both) during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity’s ongoing major or central operations.

Gains: Increases in equity (net assets) from peripheral or incidental transactions of an entity and from all other transactions and other events and circumstances affecting the entity during a period except those that result from revenues or investments by owners.

Losses: Decreases in equity (net assets) from peripheral or incidental transactions of an entity from all other transactions and other events and circumstances affecting the entity during a period except those that result from expenses or distributions to owners.

SFAC No. 5 “Recognition and Measurement in Financial Statements of Business Enterprises”

Basic Assumptions

Economic Entity Assumption: The economic activities of an entity can be accumulated and reported in a manner that assumes the entity is separate and distinct from its owners or other business units.

–The economic entity can be identified with a particular unit of accountability.

–The business is separate and distinct from its owners. No commingling of

assets and other financial elements.

–Departments or divisions of an entity may be considered separate entities.

–Accounting assumption not necessarily a legal one.

Going-Concern Assumption: In the absence of contrary information, a business entity is assumed to remain in existence for an indeterminate period of time. The current relevance of the historical cost principle and accrual basis of Accounting are dependent on the going-concern assumption. According to this assumption, liquidation accounting is not followed unless indicated.

Monetary Unit Assumption: Economic activities of an entity are measured and reported in terms of money which is assumed to remain relatively stable over the years in terms of purchasing power. In essence, this assumption disregards any inflation or deflation in the economy in which the entity operates.

Periodicity Assumption: The life of an economic entity can be divided into artificial time periods for the purpose of providing periodic reports on the economic activities of the entity. That’s why, adjusting entries must be done to bring books up to date at the end of the time period.

Basic Principles

Historical Cost Principle: Acquisition cost is the most objective and verifiable basis upon which to account for assets and liabilities of a business enterprise. Cost has been found to be more definite and determinable than other suggested valuation methods applies to assets and liabilities. According to this assumption, once a transaction is recorded at its acquisition price it is subsequently not changed. This is deemed to be more reliable than other valuation methods. Prepares and users find current fair value information to be useful as well.” Mixed attribute” system that permits the use of historical cost, fair value, lower of cost or market and other valuation bases.

Revenue Recognition Principle: Revenue is recognized when the earning process is virtually complete and an exchange transaction has occurred. Generally, this takes place when a sale to another individual or independent entity has been confirmed. Confirmation is usually accomplished by a transfer of ownership in an exchange transaction. Revenue is recognized when it is realized (or realizable) and earned. Revenue normally recognized at time of sale, with exceptions.

•During production (for example, long-term construction).

•End of production, before sale takes place. This might occur when there is an active market such as mining.

•Receipt of cash (for example, installment sales)

Matching Principle: Main theme of this assumption is“Let expenses follow revenues” Accountants attempt to match (record) expenses to the revenues which they helped generate. Use of accrual accounting procedures assists the accountant in allocating revenues and expenses properly among the fiscal periods that compose the life of a business enterprise. However, there should be a logical, rational association of revenues and expenses. Some expenses are matched to time periods alone. Where there is no logical basis for matching to periods benefited, expense in the current period. Both product and period costs must be appropriately matched.

Full Disclosure Principle: It means not too little and not too much! In the preparation of financial statements, the accountant should include sufficient information to permit the knowledgeable reader to make an informed judgment about the financial condition of the enterprise in question.


Cost-Benefit Relationship: This constraint relates to the notion that the benefits to be derived from providing certain accounting information should exceed the costs of providing that information. The difficulty in cost-benefit analysis is that the costs and especially the benefits are not always evident or measurable.

Materiality: Relates to an item’s importance to a firm’s overall financial operations. In the application of basic accounting theory, an amount may be considered less important because of its size in comparison with revenues and expenses, assets and liabilities, or net income. Deciding when an amount is material in relation to other amounts is a matter of judgment and professional expertise. An item must make a difference to be material and be disclosed.

Industry Practices: Basic accounting theory may not apply with equal relevance to every industry that accounting must serve. The fair presentation of financial position and results of operations for a particular industry may require a departure from basic accounting theory because of the peculiar nature of an event or practice common only to that industry.

Conservatism: When in doubt, an accountant should choose a solution that will be least likely to overstate assets and income. The conservatism constraint should be applied only when doubt exists. An intentional understatement of assets or income is not acceptable accounting.

2.2 Accounting and Information System:

Accounting is the system used to provide useful financial information. Differently stated, Accounting is an Information system that identifies records and communicates the economic events of an organization to interested users. On the other hand, the system that collects and processes transaction data and disseminates financial information to interested parties is known as the Accounting Information System (AIS). It includes each of the steps in the accounting cycle .It also includes the documents that provide evidence of the transactions and events, and the records, trial balances and financial statements that result. An accounting information system (AIS) consists of:

=> People

=> Procedures

=> Data

=> Software

=> Information technology infrastructure

Basically, an AIS collects and stores data about activities and transactions. It processes data into information that is useful for making decisions. It provides adequate controls to safeguard the organization’s assets

Efficient and effective Accounting information systems(AIS) are based on certain basic principles; like: cost effectiveness ,usefulness and flexibility. If the accounting information system is cost effective, provides useful output and has the flexibility to meet future needs, it can contribute to both individual and organizational goal. However, some phases are also involved in the development of an accounting system like; Planning and identifying information needs; Creating forms, documents, procedures and job descriptions; Implementing the system and making the system wholly operational and finally monitoring effectiveness of the system. These phases represent the life cycle of an accounting system.

An Accounting Information System may be either manual or electronic (computerized). My organization has been using computerized Accounting system by using Accounting software named ACCPAC, a renowned accounting solution provider. Each of the steps in the Accounting Cycle of my organization is performed almost automatically (by using ACCPAC). It enters each accounting transaction automatically in the Journal; each is posted automatically to the ledger. The Trial Balance and other Financial Statements are generated automatically. In a word, the entity generates all sort of information automatically.

2.3 Financial Statements as a source of Accounting Information

Many individuals and organizations use financial statements to improve business decisions. Investors and creditors use them to assess company prospects for investing and lending decisions. Boards of directors, as investor representatives, use them to monitor managers’ decisions and actions. Employees and unions use financial statements in labor negotiations. Suppliers use financial statements in setting credit terms. Investment advisors and information intermediaries use financial statements in making buy-sell recommendations and in credit rating. Investment bankers use financial statements in determining company value in an IPO, merger, or acquisition.

Financial statements help to analyze a company’s Strategic goals and its business environment. Financial statement analysis is an integral and important part of the broader field of business analysis. Business analysis is the process of evaluating a company’s economic ‘prospects and risks. This includes analyzing a company’s business environment, its Strategies, and its financial position and performance. Business analysis is useful in a wide rang of decisions such as whether to invest in equity or in debt securities, Whether to extend Credit through short- or- long-term loans, how to value a business in an initial public offering (IPO),and how to evaluate restructuring including mergers, acquisitions, and divestures. Financial statement analysis is the application of analytical tools and techniques to general-purpose financial Statements and inferences useful in business analysis. Financial statement analysis reduces reliance on hunches, guesses and intuition for business decisions. It decreases the uncertainty of business analysis.

Major Financial Statements:

1. Income Statement

2. Balance Sheet

3. Statement of Shareholders’ Equity

4. Statement of Cash Flows

Balance Sheet:

The accounting equation (also called the balance sheet identity) is the basis of the accounting system. One side of this equation relates to the resources controlled by a company, or assets. These resources are investments that are expected to generate future earnings through operating activities. To engage in operating activities, a company needs financing to fund them.

Another side of this equation identifies funding sources. Liabilities are funding from creditors and represent obligations of a company or, alternatively, claims of creditors on assets. Equity (or shareholders’ equity) is the total of (1) funding invested or contributed by owners (contributed capital) and (2) accumulated earnings in excess of distributions to owners (retained earnings) since inception of the company. From the owners’, or shareholders’ point of view, equity represents their claim on company assets.

A Balance sheet summarizes the financial position of a company at a point in time. Most companies report a classified balance sheet. In a classified balance sheet, assets and liabilities are separated into current and non-current amounts. An individual person can get some sorts of information regarding a company’s overall activities and performance from a classified Balance sheet . That is, if a company is profitable both investing (assets) and financing (equity) levels increase. Similarly, when a company is unprofitable, both investing and financing decline.

Income Statement:

An income statement measures a company’s financial performance between Balance Sheet dates. It is a representation of the operating activities of a company. The Income statement provides details of revenues, expenses, gains, and losses of a company for a time period. The bottom line, earnings (also called net income)indicates the profitability of the company. Earnings reflect the return to equity holders for the period under consideration, while the line items of the statement detail how earnings are determined.

The income statement includes several other indicators of profitability. Gross profit (also called grossmargin)is the difference between sales and cost of sales (also Called cost of goods sold).It indicates the extent to which a company is able to cover costs of its products.

Analyzing company profitability is a major part of financial statement analysis. All financial statements are pertinent to profitability analysis, but none is more important than the income statement. The income statement reports a company’s operating result over a period of time. Income statement plays an important role in determining company value, solvency and liquidity.

Income statement is critically important for all users but especially for equity investors and creditors. For equity investors, income is often the single most important determinant of changes in security values. Measuring and forecasting income are another most critical tasks of investors. For creditors ,income and operating cash flows are most common / and desirable sources of interest and principal repayments.

Earnings from operation refer to the difference between sales and all operating costs and expenses. Earnings before taxes, as the name implies, represents earnings from continuing operations before the provision for income tax. Earnings from continuing operation are the income from a company’s continuing business after interest and taxes. Earnings arc determined using the accrual basis of accounting. Under accrual accounting, revenues arc recognized when a company sells goods or renders services, independent of receiving cash. Similarly, expenses are matched to these recognized revenues, independent of paying cash.

Statement of shareholders’ equity:

The statement of Shareholders equity reports changes in the accounts that make up equity. This statement is useful in identifying reasons for changes in equity- holders claim on the assets of a company.

Usually details of these changes are shown under five columns:

=> Common Stock,

=> Additional Paid-In Capital,

=> Retained Earnings,

=> Accumulated Other Comprehensive Income (Loss),


=> Treasury Stock.

Common Stock and Additional Paid. In Capital together represent Contributed Capital and are often collectively called share capital.

Statement of Cash Flows

Earnings do not typically equal net cash flows, except over the life of a company. Since accrual accounting yields numbers different from cash flow accounting, and we know that cash flows are important in business decisions, there is a need for reporting on cash inflows outflows. For example, analyses involving reconstruction and interpretation of business transactions often require the statement of cash flows. Also, certain valuation models use cash flows. The statement of cash flows reports cash inflows and outflows separately for a company’s Operating, Investing, and financing activities over a period of time.

Financial statements play an important role in the field of business analysis also. Business analysis is the evaluation of a company’s prospects and risks for the purpose of making business decisions. These business decisions extend to equity and debt valuation, credit risk assessment, earnings predictions, audit testing, compensation, negotiations and countless other decisions.

Business analysis aids in making informed decisions by helping structured the decision task through an evaluation of a company’s business environment, its strategies and financial position and performance.

To show how financial statement information helps in business analysis, let’s turn to the data in the following Table. These data reveal that X Company’s net earnings in 1998 were at their highest level for the past five years. This is despite a sales decline in the previous two years. X Company appears profitable-earnings in 1998 are 10 percent of sales, or 35 percent of shareholders’ equity. However, X Company’s increased profitability has come from cost reduction rather than from increased sales, which have actually declined in the most recent two years. This lack of sales growth does not bode well for the future. Still, X Company continues to pay a steady dividend to shareholders and, using its average 1998 price of $73.40, its stock trades at more than 17times earnings and 6 times book value of equity.

The financial statement information in Table-1 enhances our ability to assess X Company’s prospects and risks. Indeed, many investors use the ratio of a company’s stock Price to either its earnings or book value as a preliminary screening tool for investment analysis.

Table-1: X Company’s Summary Financial Data (In millions except per share data)*
1998 1997 1996 1995 1994
Sales— $ 13,406 $ 14,538 $ 15,968 $ 14,980 $13,557
Total assets 14,733 13,145 14,438 14,477 14,968
Share holders equity 3,988 3,161 4,734 5,121 4,017
Net earnings 1.390 5 1.288 1.252 557
Basic earnings per share 4.30 0.01 3.82 3.67 166
Book value per share 12.35 9.78 14.27 14.80 11.82
Dividend per share 1.76 1.76 1.60 1.60 1.60
Average stock price 73.40 74.05 75.00 58.85 48.60

Now, let us see how financial statements help in making various decisions:

Credit Decision:

Creditors lend funds to a company in return for a promise of repayment with interest. This type of financing is temporary since creditors expect repayment of their funds with interest. Creditors lend funds in many forms and for a variety of purposes.

Companies often obtain short-term credit from banks or through the sale of commercial paper. Long-term credit usually is obtained from financial institutions in the form of loans, from insurance companies in the form of bonds, or from private lenders in the form of notes. Companies also obtain long-term financing through public sale of their notes or bonds in securities markets. Leasing and conditional sales are additional forms of financing.

However, creditors bear the risk of default. This means a creditor’s interest and principal are jeopardized when a borrower encounters financial difficulties. This asymmetric relation of a creditors risk and return has a major impact on the creditor’s perspective, including the manner and objectives of credit analysis. Therefore, creditors are always interested to assess the creditworthiness of the borrower.

Creditworthiness is the ability of a company to honor its credit obligations. Stated differently, it is the ability of a company to pay its bill. Accordingly, the main focus of credit analysis is on risk, not profitability.

Credit analysis is performed in a variety of decision contexts. For example, a commercial Bank must do credit analysis when extending a new line of credit to a company. In this case, credit analysis helps determine whether the loan is granted and, if it is, how it is structured and priced. Banks also need to periodically analyze the creditworthiness of it’s borrowers, both to ensure the safety of loans granted and to process requests for additional loans.

To determine intrinsic value, an analyst must forecast a company’s earnings or cash flows as determine its risk. This is achieved through a comprehensive, in depth analysis of a company’s financial statements.

Managerial Control: Managers are individuals hired by a company’s owners to effectively and efficiently manage its business activities. Managers are interested in the financial conditions, profitability and prospect of a company because these factors bear on their own well-being and future earnings potentials. Financial statements can also provide managers with clues to strategic changes in operating, investing and financing activities. Managers also analyze financial statements of competing companies to evaluate a competitor’s profitability and risk. Managers also analyze financial statements before making restructuring and financing decisions.

3.1 Organization Profile:

Wings group’s scope of business is diversified and covers international freight forwarding, shipping Logistics & distribution, travel related service, Indenting and garments manufacturing.

Established in 1989 as an International Freight Forwarder, WINGS has gone into operation with an answer to the forwarding problems encountered by exporters & importers in meeting with their delivery schedules. The sponsor directors being already involved in the export trade were well aware of these facts and have been able to come up with a proper solution to these problems. This has enabled WINGS to be one of the leading companies in the field of international transportation in Bangladesh within a short period of operation.

In this tightly integrated present world market international transportation is a part of the bridge of the total supply chain of manufacturer, raw materials supply, exporter, carriers, forwarder, custom broker and ultimately the final decision maker. A WING is a successful key player in this integration team.

WINGS, the total transportation and logistics management organization, address the challenges on a global scale with its expertise and partners around the world, on a real time basis. Becoming the essential part of exporter-importer chain, the company incorporates the mechanism to provide a high quality professional link-up for the mutual benefits. WINGS, through its global network and standard personalized services have developed and is implementing comprehensive international transportation logistics program.

Within a decade of its incorporation, WINGS is now leader in this industry in Bangladesh. The company is specialized in air & Ocean freight forwarding, Custom brokerage, road transportation, container movement and handling of heavy & dangerous goods.

The management believes that an active working environment to grow human resources can run the organization efficiently and effectively to bond long term customer relationships. With advantageous office & warehouse location, equipped with advanced and updated communication system and office automation, conditioned storage facilities, guide by a professionals with complete proficiency and talents WINGS certainly deserve to be a leader in this industry.

WINGS dynamic approach to business is well supported by the concerned authorities in Bangladesh. The objective of the company is to deliver reliable, cost effective transportation and information management. The enterprise’s strategy is based on customer satisfaction, shorter order cycle, and least logistics cost a comprehensive edge in logistics. The vision is to provide a one-stop service.


Corporate Office : Safura Tower,7th floor,

20, Kamal Ataturk Avenue,

Banani, Dhaka 1212, Bangladesh

Tel: (8802) 8827610, Fax: (8802) 8823024


Web :

Business : Global Transportation and

International Freight Forwarding

Warehouse : House No. 50, Road No. 01,

Sector – 03, Uttara Model Town,

Dhaka, Bangladesh


Office CFS : Chittagong, Bangladesh ,

Chittagong Port ,

ICD Dhaka.

Operations at Airport and CFS: 24 hour

Incorporation : 1989

Board of Directors :

Mushtaq Ahmed – Chairman

Mizanur Rahman – Managing Director

M.A. Moyeen – Director

Mahbubul Alam – Director

Staff Details :

Head Office – 86

Airport & W/House – 41

Branch Offices – 25

Office Hours :

Sunday to Thursday : 0900 hrs – 1800 hrs

Friday & Saturday : Weekend

Weekend & other holidays : Stand by staff on duty at office

Operations at Airport and CFS: 24 hours

3.2 WING’S Affiliations:

International Federation of Freight Forwarders Associations (IFFA)

International Air Transport Association (IATA)

Associations of Cargo Agents of Bangladesh (ACAB)

Dhaka Customs Agents Association (DCAA)

Dhaka Chamber of Commerce & Industries (DCCI)

3.3 Bangladesh Air Cargo Market

Members of Air Cargo Agents Association of Bangladesh are as follows:

IATA Cargo Agents : 25

Non IATA Cargo Agents : 348

No. of Export Processing Zones : 08

No. of existing Factories in Zone

Dhaka EPZ : 84

Chittagong EPZ : 132


Our Major Partners:

Carriers uplifting Cargo Shipping Lines Operating
Air France

Biman Bangladesh

British Airways

China Eastern Airlines

Cargo Italia

Dragon Air


Etihad Airways


Gulf Air

Indian Airlines

American Airlines


Continental Airlines

Garuda Indonesia

Japan Airlines

Kuwait Airways

?Malaysia Airlines

Pakistan Intl Airlines

Qatar Airways

Saudi Arabian Airlines

Thai Airways

Singapore Airlines

Korean Air

Royal Jordanian

KLM Royal Dutch

Royal Brunei

United Airlines




China shipping


DSR Senetor Lines


Emirates line

Hanjin Shipping

Hapag Lloyd




NYK Line



SAF Marine

Yang Ming Line

Maersk Line

Mitsui OSK Lines

Wan Hai

Zim Line


Global Air Freight

Global Ocean Freight

Customs Brokerage


Free Zones & Distribution

Inland Trucking

3.5.1 Global

Air Freight

Airport to Airport service

Break bulk service

Consolidation service

GOH handling

Door to Door delivery

Sea/Air & Air/Sea services


Freighter Handling

3.5.2 Global Ocean Freight

NVOCC operation

Import break bulk

Door to Door delivery

Transshipment and distribution

Inland forwarding/transportation

Project and heavy lift service

Multi-Modal transportation

3.5.3 Warehousing and Distribution



Personal/Household effect storage

Pick up & delivery

WING’S Warehouse Facilities – Dhaka

? 5500 sq. ft.

3 KM away from Airport.

Fully equipped and operational 24 hours.

Special measures against pilferage and damage.

Warehouse Facilities – Chittagong :

Own CFS-off dock facility adjacent to Chittagong port

AREA: * Own : 15000 sqft & * rented : 10000 sqft

6 loading bays

Fully equipped and operational 24 hours with security system (CCTV)

Bonded facility

1 KM away from port.

3.5.4 Inland Trucking Facilities

We provide comprehensive trucking service between Chittagong- Dhaka-Chittagong by our dedicated fleet of transport.

Adequate measures is taken to protect goods in transit.

The fleet is covered by comprehensive Insurance.

24 hours own service available

Transportation all over Bangladesh

Zones pick-up

WING’S Equipments:

Truck – 13 Nos

Forklift – 01 No

Trailer Bed – 20 Nos

Trailer Head – 07 Nos

Electronic Weighing Scale – 02 Nos.

3.6 Operating Flow Chart at a glance :

3.6.1 Air Export Process:

Custom documents received from shipper at airport

(Operation Flow Chart Continued…..)


Daily Report sent to Overseas agent twice at 9am & 2pm

Ocean Export Process:

(Operation Flow Chart Continued…..)

Cargo / Vessels Sailed

3.7 Our Specialties:

3.7.1 ICD Facilities at Chittagong:

Own CFS facility within Chittagong Port and ICD (Inland Container Depot)

Full Consolidation & Distribution Service

Comprehensive Order Fulfillment Capability

Consolidation facility


Own Warehousing facility out side of port

3.7.2 Our Strengths:

Confirmed space allocation with carriers.

Competitive airfreight rate structure.

Optimal Local Service Contract with shipping lines.

Average monthly volume (App.)

– 330 Tons

– 500 TEU

3.7.3 Specialized in handling GOH :

? We are specialized in handling hanging garments.

Wings is one of the pioneer in handling GOH by air and we fabricate

own GOH ULD to load in the aircraft.

3.7.4 Our Commitments:

To provide customized service.

Dedicated personnel at Origin.

Regular liaison with local buying agent/office and vendors for

smooth operation of freight movement.

Daily shipment update from origin & Destination to be provided to

all concerned.

Assured movement of cargo as per bookings.

Close monitoring of freight movement unto destination.

Will provide human resource for documentation & EDI service if

required at origin.

3.8 What makes Wings an Ideal Partner in Export-Import


Global Network

Corporate Financial Stability

Experienced Personnel

Continuous monitoring from cargo received to Delivery

Dynamic Management

Well known among Business Community dealing in Export/Import


Clientele Confidence

Customized, Comprehensive Transportation and Logistics Services

Continuous Development of Information and Communication Systems

Own CFS Off-dock facility adjacent to Chittagong Port




  • Wings is the recipient Of the


years from major Airlines and

Shipping lines operating out of

Bangladesh .

Wings Quality Achievements Top Cargo agent


Saudi Arabian Airlines (Globally#1 Agent’97 & 02)

Biman Bangladesh Airlines

British Airways World Cargo

Thai Airways

Emirates Sky Cargo

Singapore Airlines

Qatar Airways


Significant accounting policies & assumptions used for maintaining accounts for my organization are described below:

4.1 Basis of Accounting

The accounts have been prepared on a going concern basis under Generally Accepted Accounting Principles (GAAP) on historical cost convention. The financial statements of the firm have been prepared in accordance with Bangladesh Accounting Standards (BAS). The elements included in the financial statements have been measured at historical cost convention.

2. Fixed Assets

An asset is recognized when it is probable that the future benefits will flow to the enterprise and the asset has a cost or value that can b