UNIVERSITY OF

ZIMBABWE
FACULTY OF COMMERCE
DEPARTMENT OF ACCOUNTING

INDUSTRIAL ATTACHMENT REPORT

FOR
ADELAIDE .R. BIRI
REGISTRATION NUMBER: R183996X

A report on industrial attachment undertaken at KRATOS

CONTRACTING COMPANY, submitted in partial fulfillment of
the requirements of Bachelor of Accountancy Honors (HACC)
Degree
YEAR: 2020

2
DEDICATION

Affectionately, I dedicate this report to my beloved special family for all the great support they

offered me both financially and emotionally since I started this long academic journey. May the

almighty bless them.

i
ACKNOWLEDGEMENTS

First and foremost, I would like to extend my sincere gratitude to the almighty lord for granting

me the power and strength to perform my duties during my work-related learning and the

opportunity to compile this report.

I would also like thank the University of Zimbabwe for providing me with the opportunity to

taste the industrial waters before finally completing my degree program. This has helped me to

recognize the relevance of theory to practice and developed me personally in terms of personal

finance management and opportunities within my field of specialization.

Further, the author would like to thank kratos contracting company for awarding her the

opportunity to study under the organization, and for committing their resources and personnel

towards the success of her work related period. This opportunity gave the auto again the

necessary for my future business endeavors and career as an accountant. Special thanks go to Mr.

F.J Kagura the financial accountant who was my immediate supervisor, Ms. E. Muteswa the

accountant assistant, Mr. .K .Moyo the finance manager for unwavering support he gave during

the industrial attachment, and the whole finance and accounting team I worked with during my

tenure at Kratos Company.

Though words can never fully describe my gratitude would like to thank my mother and family

for the financial support, their continued support, and guidance throughout my work-related

learning period, and my tenure at the University of Zimbabwe from the first year up to now.

ii
PREFACE

This document presents internal and external activities carried out at Kratos Contracting

Company Pvt ltd from the author’s perspective citing out information including the background

of the organisation, its organogram, the company's goals in the market, product information.

Kratos Contracting Company Pvt ltd has different operations and processes involved in the

contracting, buying, and selling of different Tobacco grades and types done to achieve high-

quality outcomes are also revealed. The consumer and the producer helped the author learn a lot

of stuff from their company during the period of stay. Auditing, developments, and

improvements in the accounting system were also factors with advantage to the student accounts

knowledge in the accounting field. Moreover, other skills like working under pressure with

minimum supervision, being competent, and teamwork were attained while working with Kratos

Contracting Company. This documented report narrates the different accounting processes

employed by the organization to produce accurate financial statements.

iii
FOREWORD

This Industrial attachment report has been compiled as an integral part of the attachment

program and is also considered to be an essential component for the fulfillment of the industrial

attachment requirements. The principal aim of the Industrial Attachment is to exhibit the writer`s

ability to apply her theoretical knowledge acquired at university in the work-related learning

period, which is a prerequisite in the acquisition of the Bachelor of Accountancy Honors Degree.

This attachment report seeks to give an investigative and personal outline of my work-related

learning experience that was acquired at Kratos Contracting Company from May 2020-

December 2020. Information contained in this report was acquired through my day to day

activities of my professional experience at Kratos Contracting Company.

The report goes deeper to explore the activities in industry and how they correlate with academia

and possible steps that can be taken to harness the interactive effects that co-exist between the

two. Though it is written on an individual scale.

I believe this report is going to pose a challenge to Academia and industry alike.

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ABBREVIATION OF TERMS

KCC KRATOS CONTRACTING COMPANY

POP PROOF OF PAYMENT

PV PAYMENT VOUCHER

TIMB TOBACCO INDUSTRIAL MARKETING BOARD

VAT VALUE ADDED TAX

SBU STRATEGIC BUSINESS UNITY

FM FINANCE MANAGER

v
CONTENTS

DEDICATION…………………………………………………………………………………………………………………………….I

ACKNOWLEDGEMENTS…………………………………………………………………………………………………….……..II

PREFACE……………………………………………………………………………………………………………………………….…III

FOREWORD……………………………………………………………………………………………………………………………..IV

ABBREVIATION…………………………………………………………………………………………………………………….….V

LIST OF DIAGRAMS………………………………………………………………………………………………………………….IX

EXECUTIVE SUMMARY…………………………………………………………………………………………………………….x

1.0 CHAPTER 1

1.1 ORGANISATIONAL OVERVIEW………………………………………………………………………………….1

1.1.1 ORGANISATIONAL BACKGROUND………………………………………………………….1

1.1.2 LOCATION……………………………………………………………………………………………..3

1.2 MISSION STATEMENT , VALUES ,AND CORE VALUES OF THE FIRM…………………………...4

1.2.1 MISSION………………………………………………………………………………………………..4

1.2.2 VISION…………………………………………………………………………………………………..4

1.2.3 CORE VALUES OF THE FIRM……………………………………………………………………4

1.3 PURPOSE………………………………………………………………………………………………………………4

1.4 ORGANISATIONAL STRUCTURE…………………………………………………………………………………5

1.5 BRIEF DESCRIPTION OF ORGANIZATION DEPARTMENTS……………………………………………6

1.6 ORGANISATIONAL BUSINESS…………………………………………………………………………………..11

1.7 TARGET MARKET…………………………………………………………………………………………………….11

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 1.8 COMPANY PERFORMANCE ANALYSIS………………………………………………………………………12

2.0 CHAPTER 2

2.1 INDUSTRIAL ATTACHMENT ACTIVITIES……………………………………………………………………..14

2.1.1 BASIC ACCOUNTING AND BOOK KEEPING…………………………………………………….15

2.1.2 PROCUREMENT……………………………………………………………………………………………..16

2.1.3 AUDITING……………………………………………………………………………………………………..18

2.1.4 CREDITOR’S AND DEBTOR’S CONTROL……………………………………………………………18

2.1.5 GROWER MANAGEMENT……………………………………………………………………………….18

2.1.6 TAXATION……………………………………………………………………………………………………...19

2.1.7 STORES MANAGEMENT………………………………………………………………………………….19

2.1.8 INTERCOMPANY ACCOUNTS…………………………………………………………………………..19

3.0 CHAPTER 3

3.0 INTRODUCTION………………………………………………………………………………………………………….22

3.1 EXPECTATIONS FROM ATTACHMENT ………………………………………………………………………….22

3.2 EXPERIENCE GAINED………………………………………………………………………………………………….23

4.0 CHAPTER 4

4.0 LINKING THEORY WITH PRACTICE……………………………………………………………………………………25

4.1 IS THE THEORY AGREEING OR DISAGREEING WITH PRACTICE……………………………………….…25

4.2 IS THE THEORY UP TO DATE, APPLICABLE, ADAPTABLE AND ACCEPTABLE…………………….28

vii
5.0 CHAPTER 5

5.0 CONCLUSION AND RECOMMENDATIONS………………………………………………………………………………29

5.1 PROBLEMS ENCOUNTERED DURING THE ATTACHEMENT PROGRAM……………………………..……29

5.2 RECOMMENDATIONS……………………………………………………………………….…………………………………30

5.2.1 RECOMMENDATIONS TO KRATOS CONTRACTING COMPANY……………………………………….30

5.2.2 RECOMMENDATIONS TO THE UNIVERSITY ………………………….……………………………………….31

5.3 CONCLUSION………………………………………………………………………………………………………………………….33

REFERENCE………………………………………………………………………………………………………………………………….34

viii
LIST OF DIAGRAMS

FIG 1.1 ………………………………….LOCATION AND MAP

FIG 1.3.1……………………………….ORGANISATIONAL STRUCTURE

FIG 1.4.1……………………………….FINANCE AND ACCOUNTING ORGANOGRAM

ix
EXECUTIVE SUMMARY

This report was written to give an account of the major activities undertaken, experience gained,

relevance of theory to practice and challenges faced by the student during the course of the

industrial attachment at Kratos Contracting Company in Harare. This report forms part of the

third year of the Bachelor of Accountancy Honors Degree which is written in compliance with

the requirements set out by the Department of Commerce of the University of Zimbabwe.

The report has been broken down into four chapters with each chapter dwelling on a particular

section of the industrial attachment and professional experience. The chapters consist of the

general background of KCC, special in-depth study of an elected aspect of the company, analysis

and evaluation of the company`s activities, personal evaluation of the industrial attachment itself,

relevance of theory to practice, experiences gained and challenges faced, and recommendations

to both the university and the company as well as the conclusion.

x
1.0 CHAPTER 1

1.0 Organisational Overview

This chapter is going to provide information on the history of Kratos Contracting Company.

The vision, mission statement, and core values of the firm. It will provide an insight into the

objectives and organizational structure of KCC as a new stand-alone company in the Tobacco

industry in Zimbabwe. The report will highlight the department that I have worked in as well

indicate the company's achievements and challenges, explain the link of theory with practice and

the knowledge I have gained. Lastly, I will highlight the problems I faced and recommendations.

Organisational Background

The Tobacco Company was founded in 2016 and is exclusively Zimbabwean owned by Mr.

T.Namusi and, Mr. Z Shamba.It is a subsidiary of the Tobacco Victory group of companies with

the other companies being Victory risky services and Avison. The company started off as a

partnership with its sister company Avison selling fertilisers and used to contract farmers only

not selling till 2019 when the founders thought of being a stand-alone company to contract, buy

and export tobacco. The company's headquarter is in Harare where the most buying and selling

process occurs and has got other floors in Rusape. Kratos Pvt Ltd has matured over the years

transforming itself into a stand-alone tobacco company, pushing through its competitors.

At first the company majored into small scale farmers on a legally basis to deliver tobacco. The

farmers are chosen from the taking after regions: Nyazura/Odzi, Macheke, Marondera, Mt

Darwin, Karoi, and Tengwe there's an inhabitant expansive scale tobacco farmer/ex-farmer who

1
oversees the plot. KCC encourages the accumulation and distribution of inputs on credit counting

fuel (coal and diesel), ascribing financing (treat and chemicals), bundling materials,

transportation and preparing, assessment, edit observing, and agronomy expansion

administrations.

After the 2019 trial had promising results the company is expanding in the industry of buying

and exporting tobacco, because of its excellent grower recognition, Kratos Contracting Company

has some of the commercial farmers who are producing tobacco for the company beginning to

support small scale farmers around their farms. Quality operations management systems, it has a

strong Quality operations management system that guarantees growers that they had all inputs

and necessities that the farmer needs to produce quality tobacco for the buyers.

2
Location and map

Fig 1.1

4 ORME ROAD, NEW ADBENNIE

3
Kratos Contracting Company is located in Harare Province, Southerton Industrial site,

approximately 14 km from the capital’s C.B.D. Its location was due to the abundance of space

close to the market which serves as a competitive advantage.

1.2 Mission Statement, Values, and Core Values of the Firm

1.2.1 The mission of the Organisation

o To provide the customer with quality Tobacco

1.2.2 Organization Vision

o To grow into a leading tobacco company in the industry

1.2.3 Core Values of the Firm

Kratos Contracting Company (K.C.C) attempts to achieve its vision through the observation of

the following aspects:

o Transparency

o Professionalism

o Innovation

o Integrity

o Reliability

o Fairness

1.2.4 Objective

4
 o Increase in profit margin

o Increase efficiency

o Capture bigger market share

o Achieve and maintain an outstanding customer service

o To ensure reliability to clients and the ability to meet deadlines.

1.2.5 Purpose

This tobacco contracting company offers the following services to its clients:

o Contracting farmers

o Providing growers with inputs

o Buying tobacco

o Selling tobacco

o Exporting tobacco

1.3 ORGANISATIONAL STRUCTURE

The company is set up in a particular way such that a functional structure, to achieve distinctive

objectives and this structure of the organization makes a difference it advance toward finishing

their objectives. This way the company accomplishes higher deals and benefits by making a

difference the company assign roles, duties and supervision inside an association. It at that point

characterises each work, its capacities and where it reports to inside the association in executing

its objectives and vision.

5
Fig 1.3.1

CEO

GENERAL
MANAGER

OPERATIONS AND HUMAN AND INFORMATION

FINANCE CUSTOMER CARE
WAREHOUSE RESOURCE SYSTEM
DEPARTMENT DEPARTMENT
DEPARTMENT DEPARTMENT DEPARTMENT

SURBODINATES SURBODINATES ASSISTANT

STUDENTS

1.4 Brief Description of the Organization Departments

 Operations department

This department advises and assists the General Manager in checking the quality of input raw

materials to ensure compliance with technical standards on chemical, physical and organoleptic

stated. The department liaises with TIMB that it may stand in-between the company and the

farmer to ensure fair play and contract the farmers to the TIMB.The operations team runs the

warehouses have the function of organizing, managing, maintaining quantity and quality of

tobacco and stores of the products. They as well keep precise records on stock input & output.

6
The operations department is in charge of tobacco transportation and they group tobacco

according to the grades and weight. So they weigh each and every bale and the system will

charge for the selling and weighing using the weight of the bale, which is where their revenue

Centre. Moreover, it distributes inputs on credit including coal, chemicals, and fertilisers, trains

and helps the farmers planning and land preparation. They educate farmers on land preparation,

farming ways, the timing for fertilizer and curing, and in other relevant aspects such as irrigation

scheme to be used to avoid loss on revenue as it revenue centre depends on the outputs from the

farmers and on the distribution of inputs.

 Customer Care department

This department bargain with the farmers coordinate. There are the one who communicates with

farmers helping them with information that they need. The customer care department receives

quires from the farmers and passes them to the accounts departments. More so they update

farmers Bank details into the ANT-MAC software spackages so that when farmers are getting

paid the accounting department will pick the Banking details from the system and help the

farmers to open bank accounts.

 Information technology Department

IT department is responsible for computer operations and other information technology within

the organization, at KCC the IT department provides all departments with the functionality they

need to perform their duties and enables the communication between employees by driving the

system (ANT-MAC) to be efficient in the flow of information if there are challenges within the

system the IT department is the one which communicates with the system programmer and if

there any changes they will update all computers system software.Moreso the department handle

7
issues in maintaining networks such as when the network goes down they put the network back

up quickly or switch it over to another alternative network. Apparently from all those maintains

the systems that go unseen.

 Human resource department

The department is concerned with the recruitment, selection and training of the personnel for all

the company’s SBU’s and departments. It also keeps the human resources personnel records.HR

Department has the function of advising and assisting the Board of Directors in handling and

managing aspects relating to employees such as:

o Policy initiation

o Computation of wages for contract workers.

o Training and development

o Performance appraisal

o Employee welfare and motivation

o Recruitment and selection of employees

 Finance &Accounts Department

This department is headed by Mr. K.Moyo who is the finance manager at Kratos contracting

company (KCC). Its main focus is to provide support to other departments and make the

corporate goal reality. This department holds 2 sub-departments under it which are financial

accounting and leaf accounting.

8
FINANCE &ACCOUNTS ORGANOGRAM

Fig 1.4.1

Finance
Manager

accounting Leaf
manager accounting
Manager

FFINANCIAL
financial ACCOUNTANT
accountant ASSISTANCE

STUDENT 1 R183996X STUDENT 3 STUDENT 4

BRIEF DESCRIPTION ON ACCOUNTING DEPARTMENTS

 Financial Accounting

This department is led by Mr. F.Kagura who has invaded the FKJ accounting system, the

department carries 80% of the duties in accounting at the organisation.

9
Main functions performed include:

o Bookkeeping

o Financial reporting and financial controls

o Budgeting and Budgetary control

o The payroll of Salaried employee

o Management of taxes

o Management of the company's investment of the company's cash flow.

o Procurement

o Creditor and debtors control management

For the purposes of such computations, they use accounting packages such as Microsoft Excel,

FJK software, and ANT-Mac software. This helps in minimising mistakes by being able to

identify them easily and calculations involved in the cash flow of money hence making the work

much easier. The company provides the following information so that the work is processed,

invoices, vouchers, receipt, requisitions and filing of all documents.

 Leaf accounting department

The Leaf Accounts department is the main revenue centre department of the company business.

This department is headed by Mr. Masungo. The department account for all Green and dry

10
Tobacco and payments processing to suppliers. It includes accounting for the Tobacco

throughout the value chain to shipment. Importing green data to the Leaf Accounts System daily

produces daily reports to all concerned on progressive purchases. Liaise with auction floors on

any missing or un-invoiced bales. Importing dry data in the Leaf accounting System produces

packed stock reports. Authorize floor invoices for payment to Auction Floors, check all

processing invoices from a service provider for correctness and forward them to Accounts for

payment.

Main Duties

o Costing for all packed tobacco, collect all charges for processing, green cost, material

cost and any other costs that may arise.

o Reporting to inform all concerned on progress in purchasing and processing of tobacco

during the season by producing quality reports. Summaries all green purchases for the

month, processed tobacco for the month and any other reports that may be required by the

Directors. Analysis of green and packed tobacco. Analyses information from TIMB and

prepare board report on a monthly basis.

o To ensure that all purchased Tobacco is properly accounted for

o To ensure accurate and timorous reconciliation and payment to Suppliers of Green

Tobacco

o To ensure that statutory levies and charges are correctly computed and remitted

11
 1.5 Organisational Business

KCC engages in small scale farmers on a legally binding basis to produce tobacco. The

agriculturists are chosen from the taking after regions: Nyazura/Odzi, Macheke, Marondera, Mt

Darwin, Karoi and Tengwe there is an inhabitant large scale tobacco farmer/ex-farmer who

manages the scheme. Too, utilized in each zone are Irrigation system Director, Senior Leaf

Professionals, Leaf Professionals and a Reforestation Specialist. Agriculturists are chosen on

justify to join the program within the regions of operation. The farmers utilize their claim arrive

and are helped in arranging, preparing, arrive arrangement; inputs on credit and in pertinent cases

can qualify for water system plot and horse shelter building credit. Adherence to attempted and

tried generation strategies is required by the company and non-performers without exceptional

circumstances are expelled from the program for non-performance or side offering. KCC

encourages the conglomeration and distribution of inputs on credit counting coal, chemicals and

composts. Because of its excellent grower recognition, KCC has some of the commercial farmers

who are producing tobacco for the company beginning to support small scale farmers around

their farms

1.6 Target Market

Every Tobacco organisation needs to meet its expected target and satisfy their customers, hence

more tobacco is demanded. Kratos Contracting Company offers its services in buying and selling

of tobacco green leaf to every contract small scale farmers and trading companies locally and

internationally which is into tobacco business. Its main target markets are small, medium, newly

established farmers and large commercial farms.

12
 1.7 Company Performance Analysis

“Organisation performance is obviously the central issue in business, “Czech Republic.

According to KCC objective of being a stand-alone and growing checking with the previous

year, it has managed to have highly performed in succeeding with about 75% of what they

expected, KCC’s team is now highly experienced in the coordination and stimulation of local

commercial and small scale farmers whose farming experience dates way back from 1960’s. It

has increased its workforce ever since then and is still increasing from time to time. KCC’s now

has growers that are placed in deferring categories due to a number of factors ranging from

farming experience, credit history, and the number of years growing with the company. Basing

on these metrics the farmers are afforded applicable levels of the field to floor Support.

13
2.0 CHAPTER 2

2.1 Industrial Attachment Activities

The organization offers a wide range of services and the writer during her period at Kratos

Tobacco Contracting Company managed to be part of the team that provides these services in

different departments. This chapter provides a description of all the duties executed by the writer

during her period at the attachment. The Accounting department uses the accounting process

flow which shows the procedures to be followed when an accounting transaction and shows who

does this and that. From that process chart, the author managed to do three-quarters of the duties.

The author managed to be in one department:-

Financial accounting department

The financial and accounting department is the biggest department at Kratos Contracting

Company (KCC) which may constitute about 30% of the workforce done. The head of the

financial accounting department is Mr. K. Moyo, assisted by Mr. F.Kagura who is my supervisor

during the period the writer was in this department. This writer managed to do the services listed

below:

o Basic accounting and bookkeeping

o Credit control

o procurement

14
 o stores management

o grower accounting

o management accounts

o tax accounts

The writer managed to be able to learn most of the financial department activities and services in

a company, the duties that were exercised except for tax accounting the jobs are as follows:-

2.1.1 BASIC ACCOUNTING AND BOOKKEEPING

o ledgers

Prepared the payment vouchers posting transactions to their relevant ledger accounts these PV’S

include refunds which we put into trade debtors accounts, creditors under trade creditors account,

transporters fall under other creditors as well as company expenses .the PV consists of the

amount on the request and the amount on the POP and a narration column as well as comment

section in case if there is additional information which affects the ledger. Taking the double entry

system into consideration. I was able to the ledger for receipts, when a certain farmer or debtor

owed us and pays I would use the FJK system to credit the amount to erase the owing or to

reduce the owing amount, after that we could charge the stop orders of the current season.

o filing

15
The author managed to file documents such as invoices, requisitions, stop orders, and contracting

forms these were done to keep them safe, for auditing purposes and as proof when there is

something not counting up. More so, the student was registering requisition and contract forms

section including checking; authorization, existence, and validity of documents and payments,

payments are supported by valid Suppliers’ Invoices, expenses are correctly classified and posted

into the system.

o Data capturing

After verifying the source documents, data capturing now begins. ANT-Mac and FJK is the

accounting software that is used at Kratos so all the data capturing is done in the FJK and ANT-

Mac system. Stop orders, tickets, sales, debtors bank details accounts, receipts and flimsy tickets

are captured then ANT-Mac aggregates them to their specific accounts so as to come up with

sales sheets and daily reports.

o Back-ups and recoveries

The writer learned how to check if all documents such as requisitions, seller sheets, payment

vouchers, payment schedule, invoices and stop orders are backed up and if they're not the author

would create backups and export them in the system. The backup document should have all

details including date and time and narration of transactions vividly and exactly as it is on the

physical copy.

2.1.2 PROCUREMENT

16
The writer managed to do procurement, where she receives purchase requisitions from any

department of the smallest amounts without compromising quality and get quotations from the

suppliers. One selects a suitable supplier from those quotations and issue an order to the selected

supplier for him to supply the goods. Prepared a comparative schedule where she could justify

why she chooses the supplier and hand it over to the finance manager for authorization. If the

FM passes the requisition out the author would create a requisition form enquiring to purchase

the goods or services requested and respond to the supplier that has been chosen. She was also

ensuring that there are sufficient inventories kept in stores in order to prevent stock outs.

o Requisition

Under this the writer manages to make requisition for the company operating expenses and made

them getting them authorised, the request will first be signed by the one who made it followed by

the person who suggested the request, followed by my supervisor the head of the financial

department and lastly the finance manager then it goes for payment and it will be signed again

by the person who made the payment and writes date and time he or she paid the request

The writer put together all the documents required for making a request and if there were missing

documents the writer then could send emails to the department making the request requesting the

outstanding documents or information. If all the documents and information were available I

then make a request, sign the document indicating that I'm the one who made it, submit it to the

supervisor to check if all the information is adequate, the request is necessary and signs if he

agrees with everything and I, therefore, hand it over to the finance manager if the request is

beyond reasonable doubts and then sign if he agrees

o payment vouchers

17
After the payment of the requisitions, the writer prepared the payment voucher document. She

major on the cash payment vouchers, the voucher document will consist of the requisition

number made for the payment to be made, the amount and currency to be paid and apart for the

one who is receiving the money to sign after he or she had received, the person who disbursed

cash and the authorised member .and the PV will be attached to the requisition for filing.

2.1.3 AUDITING

o System auditing

The author managed to do system auditing whereby we could compare physical seller’s vouchers

and the soft copy voucher from the system. We could do this to check arithmetical accuracy and

to avoid under or overcharging on the creditors. Furthermore the student managed to help the

internal auditors auditing the cash flow of United States dollars of the company using the bank

statements, sales sheets, requisitions made and reasons why they were being refunded by asking

questions to the ones who made the requisitions or checking the calculations. Framework

reviews were carried out on a week by week premise at the starting and slowly were carried out

on a month to month premise. It includes an orderly and autonomous examination of money

related data yield to decide on the off chance that related comes about comply with input and

anticipated comes about.

2.1.4 CREDITOR’S AND DEBTOR’S CONTROL

o Debtor age analysis and creditor age analysis

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The student also learned to do debtor age analysis. We use what is called a stop order. A stop

order is a legal document which is part of the contract form a debtor and a creditor both agree on,

that gives an organization the right to deduct money owed by a debtor from their sale,. This was

done through raising debtor’s invoices so that when they receive their seller’s vouchers they will

have an idea and understand the net payment. A debtor age analysis report was created to

ascertain debtors who still owed by grouping outstanding invoices by customer and date range.

This was done using the Ant-Mac system which consists of debtors reports that were used to

compute debtor reconciliations.

Under credit age analysis the author and weekly reports for them

The author managed to sort the creditor transactions into aging bonds by checking all the

requisitions that were made and proof of payment and create a reconciliation statement

comparing the total amount the entity had paid against the one which they were supposed to pay

from the system to check if we still have a balance owing to them, and in case we still have a

balance owing the writer would ask for the one making request to raise a request for the creditor

to erase the accrual amount. This activity was done quarterly per year and would help in

computing cash flows.

2.1.5 GROWER MANAGEMENT

o Grower account

The author was able to update bank details for the creditors (growers) using the Ant-Mac system

so that the payment schedule generated would reflect them and also the sales sheet. This would

19
add the effectiveness of payments to the creditors. Under this section, the writer was to verify the

payment schedule and check if the net payments and bank details are correct.

2.1.6 TAXATION

The writer was included within the computation, compiling, and preparation of VAT, QPDs,

withholding taxes, and PAYE (Pay as you earn). Reconcile the PAYE, VAT, QPD return utilizing

the bank statement against the initial return captured within the system (for the current period

being calculated for). She managed to e-file the records through scanning them, submitting the

scans to the management and uploading the VAT returns on Zimra Portal. Understanding of fiscal

tax invoices and the exempt and zero-rated supplies for VAT were. The mechanics of Esteem

Included Tax and the suggestions of corporate charge was a really crucial, valuable and pertinent

apparatus in assess accountancy.

2.1.7 STORES MANAGEMENT

A tobacco contracting company issues inputs to the farmers which are very expensive, the author

was able to record the stock received and reconcile against what was purchased but not

delivered, monitoring and making sure that all stock is stored at a secured place, she managed to

issue office stationery inventories, producing daily stock covers for all strategic raw materials,

maintain stock records and inspecting goods received to meet the quality and quantity required.

20
2.1.8 INTERCOMPANY ACCOUNTS

o Intercompany invoices

The student extracted the daily detail deduction reports and collect all inter-company charges,

Calculated the weekly amount due to the intercompany using Pivot tables in order to prepare the

intercompany invoices showing the amount to be paid and submit them for processing.

o Intercompany Reconciliations

Intercompany reconciliations were done to ensure that the balances of KCC agree with those of

its sister company (VRS). The balances show what Kato’s Contracting Company owes or is

owed by its sister company within the group. The balance must always agree. If the balances do

not agree, then investigations have to be done and the necessary measures taken to make the

balances agree. The balances on the intercompany reconciliations are cleared on a quarterly basis

and paid through invoices such as Tobacco levy, TTA, Buyer government levy, floor clearing,

and tobacco commission charge.

21
3.0 CHAPTER 3

3.0 Introduction

The chapter will centre on the student`s desires from the work related working environment upon

joining the organization. It moreover incorporates the experienced picked up and contributions

she made during the course of the connection period.

3.1 EXPECTATIONS FROM THE ATTACHMENT

o Planning and Preparation of Financial Statements

The understudy anticipated to be specifically responsible within the preparation of financial

statements. This was so because at the University the author had been instructed to prepare the

arrangement of such statements ,moreover thought that were of small significance and was as it

were mindful of the planning of bank compromise articulation.

o Management employee relationship

The author had the recognition that directors were there to annoy subordinates and acting as

guard dogs as it were there to undermine and punish subordinates for any off-base done at work.

The author at that point came to figure it out that bosses are like your family, your partners you'll

be able giggle and share with individual problems, social stories, instructive and work challenges

3.2 EXPERIENCE GAINED

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During the attachment period went through by the author at Kratos Contracting company, there

was was step for the development of the student`s career and to give the student a clear picture of

what the industry is like before actually joining the industry after graduating.

o Accounting Software

Upon commencement of attachment the student was already familiar with the ERP software,

Microsoft products ,however she had no idea on how to use and what pastel accounting software

and ANT-Mac system used in the tobacco industry ,never the less the tenure at Kratos

Contracting sharpened my computer skills and the knowledge on other accounting systems.

o Communication skills

Including to the communication aptitudes learned at school, the understudy had the opportunity

to communicate learn to be able to communicate with individuals at all levels of the organisation.

This made the writer`s certainty to be reinforced. The modes of communication more often than

not took the of face-to-face communication, mail and phone discussions.

o Teamwork

The writer came to appreciate the importance of teamwork through the experience at KCC.

Teamwork helps solving any problems and queries as you work together to achieve a common

goal. Teamwork makes work much easy and more interesting.

o Preparing Reconciliations

The student acquired knowledge in preparation of reconciliations. The reconciliations were

prepared at the end of each and every month and are classified under three major categories

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which are intercompany reconciliations, investment reconciliations and general ledger

reconciliations.

4.0 CHAPTER 4

4.0 Linking theory with Practice

Introduction

The industrial attachment has proved to be useful and has so much contributed to the intellectual

development of the writer. This opportunity has given the writer an appreciation of how the

theory learned links to the practical work. The knowledge obtained from the university equipped

the writer with the skills that he managed to apply during her attachment period at Kratos

Contracting Company

4.1 Is the theory agreeing or disagreeing with the practice

The writer would like to make an appreciation that the theory learned at school agrees and relates

a lot to the practice. This has managed to make the writer able to copy and apply the knowledge

during her attachment. The following areas were applied during the attachment in relevance to

the theory:

 Introduction to business law

We prepared contract forms which we offer to the farmers which consist of terms and conditions

such as inputs there will be supplied with, obligations of the growers, what happens if there is a

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breach of contract. If there is a breach of contracts depending on the side which is at fault the

other part may sue the other part which breached the contract and does not agree with the

remedies on the contract form.

 Intermediate Financial accounting

The updated financial reporting framework and standards according to the recent International

Accounting Standards Board (IASB) was relevant. The International Accounting Standards

Board, I.A.S 1(revised version 1 January 2009) stipulates that in virtually all circumstances an

entity achieves a fair presentation by compliance with applicable I.F.R.Ss. The standards learned

such as IAS 2: Inventory valuation using FIFO method when recording and distributing inputs

and office stationery, IAS 7: Cash flow statements and IAS29- on daily activity to check if the

rate had changed and take it into effect if there any changes .taking into consideration

hyperinflation.

The student was able to attend to more complex accounting issues such as the use of accounting

standards in the preparation of ledger accounts such as operating lease and statutory.

 Accounting information systems

In the business world today, the use of computerised financial and accounting systems is now the

norm. The skills learned in the first two years of the degree program, availed the writer

invaluable technical competence that enabled her to have an insight into the accounting package

that was used at Kratos Contracting Company under the accounting group. The use of accounting

packages was thoroughly taught in Accounting for Information Systems course and lessons on

how packages are the centre-piece of every office worker's tools of the trade. The writer had the

benefit of acclimatising with the Accounting package namely FJK

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  Cost accounting

The theoretical knowledge learned at the university pertaining to this course was especially

relevant to the issuing and receiving of stock within the company and from the warehouse. It was

also applied in apportioning costs for different floors. The student managed to apply the

theoretical knowledge on cost accounting and control on the issuing and receiving stock of

stationery and inputs.

 Auditing

Seller’s sheets are inspected to see in the event that conclusions and intrigued charges were

carried out accurately against Installment plans to see in case the data is in line with the data on

the seller’s sheets, bank subtle elements. On the off chance that data isn't palatable, work is done

to redress the error inside the framework. Internal auditors do department visits each month for

reviews. All printed material that's the essential record from each prepare stream is well recorded

for review trails. There are inner controls that have been set in put for security reasons, and

indeed the way stock is gotten at the distribution center. Security checks are done when stock is

gotten and issued as well on the transportation of tobacco on both floors and distribution center.

Communication skills

Communication skills are indispensable in any setting if a shared meaning is to be exchanged

between the communicators. From the moment students go for business interviews and

presentations, they start applying the communication skills learned. Furthermore, communication

skills were helpful when attending to clients such as creditors and farmers. The penning of this

report was in accordance with the guidelines taught in the course of report writing.
26
Communication Skills learned at the University of Zimbabwe helped the author to communicate

effectively with the supervisor and other staff members using various techniques like proxemics,

effective presentation skills, verbal and non-verbal communication. Shannon Weaver, a

proponent of communication, defined communication as a process where one is able to pass

information to another.

Thus, it can be concluded without any shadow of scepticism that theory was relevant to practice

and it contributed immensely to the successful conduct of duties during the attachment period.

4.2Is the theory up to date, applicable, adaptable, and acceptable

 Financial accounting and reporting

The American Institute of Certified Public Accountants has defined Financial Accounting as "the

art of recording, classifying and summarizing in a significant manner and in terms of money

transactions and events which in part, at least of a financial character, and interpreting the results

thereof

 Inventory Valuation

Inventories are valued at the lower cost and net realizable value. The company values its

inventory at the lower of cost and net realizable value. And it uses FIFO as its inventory method

Net realizable value represents the estimated selling price of inventories less all estimated costs

necessary to make the sale. According to IAS 2 paragraph 9, “inventories shall be measured at

the lower of cost or net realizable value.” The company recommends that the valuation of closing

stocks to be the lower of its cost or net realizable value as stated in the standard. In compliance

27
with Generally Accepted Accounting Practises (GAAP) only inventory in the saleable condition

is counted and included in the company inventory valuation figures. To avoid inventory loss the

company usually keeps few inputs in stock and the rest they collect from its suppliers when it is

about to be distributed.

 Accounting concepts

Double entry concept – all the departments through coding of accounting source documents,

showed an appreciation of the double-entry principle which is the basis of all accounting which

says that for every transaction there are two accounts to be affected debit and a credit, this has

been witnessed through use of the accounting package.

Prudence concept – the calculation of depreciation and of several other provisions which are

treated as expenses also proved the relevance of the prudence concept which says that losses

should be provided for as soon as they are realized so that profits are not overstated.

 Accounting standards

The preparation of all accounting schedules and reports for the company clients at Kratos is

according to Generally Accepted Accounting Practices (GAAPs) and a few of Accounting

Standards. These proved relevant in the operations of the company in the valuation of trading

and non-trading stocks. It is also consistent in the use of its intercompany invoicing from one

period to another and this is under IAS 8 paragraph 13 which states that "An entity shall select

and apply its accounting policies consistently for similar transactions, other events and

conditions unless an accounting standard or interpretation requires or permits different

accounting policies to be applied to different categories, an accounting policy for each.

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CHAPTER 5

5.1 Conclusions and Recommendations

Problems Encountered During the Attachment Program

 Adjusting to industry life

o The writer noticed that it was a challenging experience getting used to different people

with different perceptions, values, norms, cultures and even behaviour. It took her time to

adjust to the industry life because of the above mentioned reasons. People in the industry

have different perceptions of student attachment such that some of them may regard it as

a waste of time teaching or training students their job. Some may not even take the

student's advice or contributions as a result the student would feel out of place, and would

speak her mind.

 Unorganized chain of Command

o The writer faced a challenge in identifying the proper chain of command. This was

because of one superior whom I reported to everything and had no one to report too, the

superior was the finance executive, the accountant, the owner of the accounting package;

he was the one who does most of the jobs. This caused some confusion and

misunderstandings on accounting segregation of duties to me as I was new to the

workplace. This was eased as I had to always my house in order.

 Interference by some senior workmates between the supervisor and the student

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 o Some senior workmates would interfere when asking something from your boss in a

negative way which will make our supervisor too emotional and won't explain anything

understandable and it as well causes misunderstandings between the student and the

supervisor.

 Students do not perform in the preparation of company financial statement

o The student is expected to be directly responsible for the preparation of financial

statements. This was so because at University the writer had been taught the preparation

of such statements, though the writer was one of the major pillars which a company laid

upon producing the financial result

4.1.2 Recommendations to Kratos Contracting Company (KCC)

The writer would like to recommend KCC to keep up the good work of engaging students on

attachment as it affords the opportunity so desired by many university students to learn the

realities of the business world. This also builds a relationship between universities and KCC. The

writer benefited truly from this attachment period and would also wish her colleagues in

university the good fortune to benefit from being attached to KCC she did. However, the author

would like to recommend and make suggestions to the Kratos Contracting Company on other

aspects such as:-

 Job Rotation

Job rotation. The company should ensure that all the students are rotated at the end of every six

months. This will familiarize the student with various units of the company and be able to

appreciate the relevance of theory to practice more. It also enables the student to be flexible in

working in various environments with various workmates

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  Students consideration

The organisation needs to understand that the theory of accounting students revolves around

financial statements and the report therefore they should let students participate in their creation

and analysis. The organisation should do away with its privacy policy when it comes to financial

statements and realizes.

 Job description

The company should ensure that each student is given a job description. The job description will

help the student to know what is expected of her and at what time. Students will assume full

responsibility for their work and a sense of belonging. As a result, inefficiencies are minimized

hence the achievement of the organization`s goal and objectives without any compromise.

 Motivational strategies

The company should increase their motivational strategies to avoid theft from all departments as

I noticed in the tobacco sector every department they have high chances of stealing and that all

departments rely on each other therefore the organisation should not rely on the economy taking

benefits of the economy and to meet its objective it should have knowledge of investing for more

returns. Moreover, the company should improve its Human resource policy whereby it forecasts

its future labour requirements in advance. This is to avoid understaffing especially during peak

business periods so as to avoid compromising on productivity.

4.1.1 Recommendations to the university

The writer complements the whole project of work related learning implemented by the

university. However, there could be further improvements in relation to engaging the employers

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and the students soon after employment of students and precisely elaborating on the areas of

business the student should be exposed to and the durations per department.

 Career expose and differentiation of accounts

The writer recommends that the University keep up the good work in its bid to produce captains

of the industry by securing attachment places for students when they can. Through the tireless

efforts of the ILO (Industrial Liaison Officer) and the Commerce Department, the writer was

accorded the chance to apply what was learned in the first two years of the Accounting degree

program. The University has actually bred an individual whom it can proudly call a product of

the tried and tested academic brand.

 Accounting Packages

The writer appreciates the use of Pastel at university but would like to recommend that the

department should not only base with one accounting software package during the first two years

but change them on a semi-annual basis. The constant changing of the accounting packages will

enable the university to keep pace with changes in technology and adopting the accounting

packages currently used in the industry.

 Restructuring of the degree program:

The writer observed during attachment that some of the courses that are only done at part four of

the degree program are quite essential in the industry as their theoretical knowledge is widely

applied in the industry, for example, Corporate Governance, compliance, and statutory returns

and taxation which are only introduced in the final year when it is widely applied in industry.

Therefore, the writer recommends the university to consider introducing the introductory courses

of some of these courses in part two and at least give students a foundation of all the core courses
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at part two so that students can be able to apply this theoretical knowledge when they go to the

industrial attachment.

4.2 Conclusion

In all respects, this was a priceless experience that has developed the writer as an individual and

endowed her with a protestant work ethic, innovativeness, decision making skills, increased self-

confidence, competence and foresight. With these qualities, the writer has become better placed

to face the numerous challenges of the final year of study, her career and of her life as a whole.

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REFERENCE LIST

1. Wood, F. and Sangster, A. (2005) Business Accounting 1.10th edition, London: Prentice

Hall.

2. Denmark Training Centre, 2008, Taxation in Zimbabwe, 1st Edition, Denmark

Publishers, Harare.

3. Deloitte.(2019)IFRS in your pocket,2019.Available at:

https://www2.deloitte.com/me/en/pages/audit/articles/ifrs-in-your-pocket.htm

4. Afonina A & Chalupský, V. (2012). The current strategic management tools and

techniques, Economics and Management: The evidence from Czech Republic.

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